Overseas posting not a right

MULTINATIONALS’ OBLIGATION TO REDEPLOY

"A Fair Work Commission decision sheds light on the obligation of multinational companies to consider overseas employment for employees affected by redundancy.

The commission found the failure of a multinational company to redeploy an employee who was made redundant into an overseas position was not unfair.

The company, part of a multinational employer group, was found to have complied with its obligation to consider reasonable redeployment options, even though it declined to place an employee in an available position overseas when it made employees in its Brisbane office redundant.

The commission found that only after considering basic questions about a company’s structure, such as whether it has a formal overseas relocations policy and central management control over the relevant overseas office, need the task of assessing an employee’s skills, experience and qualifications against available positions be undertaken.

At any given time there may be a number of vacancies in a firm’s overseas offices. This decision establishes that it will only be necessary to consider international options for redeployment in certain circumstances. A number of other factors which the commission said need to be considered include the costs of relocating an employee from one country to another and training to fit relevant job requirements or gain necessary language skills."

“The article is published with permission of Law Society of New South Wales. Copyright (c) Law Society Of New South Wales – Client Newsletter, 1, 2014.”

Contact Principal Solicitor Andre Petrov at Systema Lex  if you require assistance with a work-related issue. Systema Lex is a Sydney-based general legal practice. Please feel free to check our website http://www.systemalex.com.au for details.

ACCC wins by forfeit in the first unfair contract terms case

ACCC wins by forfeit in the first unfair contract terms case

"Unfair terms and conditions will not be tolerated under the consumer watchdog’s unfair contract term rules.

The Australian Competition and Consumer Commission (ACCC) has chalked up its first win on a case solely arising from the unfair contracts terms rules, with internet service provider ByteCard quickly capitulating and consenting to declarations that its terms and conditions (T&Cs) were unfair.

The rules target industries with a reputation for locking customers in to dodgy contracts, like mobile service providers, airlines and gyms. They caused a stir when they were introduced, threatening to be a serious weapon for consumers and an equally serious headache for businesses. Marred with vague terms like ‘fairness’ and ‘legitimate interests’, it’s sometimes a challenge to assess whether contracts are compliant.

Unfairness in ByteCard’s T&Cs arose because they:

• allowed ByteCard to vary prices without notice, and without giving consumers the opportunity to negotiate or the right to terminate;
• included an indemnity from its customers for, well, anything. It wasn’t even limited to losses arising from the customer’s actions; and
• permitted ByteCard to terminate any account at any time without cause or reason.

For ByteCard, the case cost $10,000 towards the ACCC’s legals, the cost of its own legals, and, most importantly, the damage to its reputation. It could also face damages claims from customers who were adversely affected by the unfair terms.

The kinds of clauses targeted in the case aren’t peculiar to internet service providers. The common thread to the terms in question are that they are one-sided, wide reaching, vague or are internally inconsistent.

It’s fair to assume that these kinds of clauses will remain of most concern to the ACCC.

In short, the ACCC is done with friendly approaches. Enforcement of the unfair contract terms rules is now a priority."

“The article is published with permission of Law Society of New South Wales. Copyright (c) Law Society Of New South Wales – Client Newsletter, 4, 2013.”

Contact Principal Solicitor Andre Petrov at Systema Lex  if you require assistance with a consumer contract issue. 

Systema Lex is a Sydney-based general legal practice. Please feel free to check our website http://www.systemalex.com.au for details.