IEU will prosecute the misuse of fixed-term contracts
The IEU is still concerned concerns about the misuse of fixed-term employment contracts in independent schools. Unfortunately it appears some staff are being unlawfully denied ongoing employment.
Employers who deny employees their deserved status risk very significant penalties.
In 2016, the union prosecuted the Australian International Academy of Education in the Federal Court about the misuse of fixed-term contracts. The case ran for more than three years, cost the Academy millions, and resulted in the largest penalties ever issued in such a matter. The Academy also had to pay the IEU’s legal costs. The case was widely reported and led to many schools reviewing their use of fixed-term contracts, causing a significant reduction in examples of unlawful abuse of fixed-term employment by schools.
Unfortunately it hasn’t stamped out the practice entirely.
Following Commission and Court proceedings spanning 2021/2022, the County Court recently issued orders against Ilim College for breaches of the Fair Work Act relating to its misuse of fixed-term employment. In addition to declarations that Ilim College breached its Agreement and the Act, Ilim paid the affected employee $15,000 (including the $5,000 ordered by the court), but the cost of defending the actions was far more significant. From the outset, the IEU offered to work with Ilim College to resolve the problem. Unfortunately, Ilim chose to fight us instead.
Our research has identified that people put onto fixed-term contracts suffer, among other things:
financial and housing stress (because fixed-term workers cannot get loans)
safety issues (as a result of reduced access to training and more reticence to raise concerns)
direct and indirect discrimination against pregnant women and mothers (who are disproportionately over-represented amongst fixed-term employees)
impacts on physical and mental health
difficulties planning for the future, including planning for families and holidays
significantly lower job satisfaction.
The IEU understands that there are legitimate reasons for some fixed-term contracts, and we don’t want to interfere with those. However, the onus is on employers to ensure any fixed-term contracts are lawful and justified.
There are two key messages the IEU wishes to communicate to all employers in our sector:
The IEU is ready and willing to advise and work co-operatively with employers to ensure that schools are compliant with legal restrictions on the use of fixed-term employment. In any co-operative process of review, our intention would be to constructively resolve any issues.
Where the IEU finds that schools have rejected the offer above but are contravening restrictions on the use of fixed-term employment, the union will prosecute and seek substantial penalties.
The union prefers co-operation, and we hope employers do also.