Employment Law Update – Autumn 2019

Welcome to the MST Lawyers Employment Law Update. This quarterly electronic bulletin will provide our readers with information on significant developments in the areas of employment law, workplace relations and industrial relations.

FWO Strikes First Blow In Spotless “Ordinary And Customary Turnover Of Business” Challenge

The long-standing question regarding when the ordinary and customary turnover of labour exception applies for employers to avoid paying redundancy entitlements remains unclear. An industrial battle remains over the words “ordinary and customary turnover of labour”.

In the recent decisions of United Voice v Berkeley Challenge Pty Ltd and FWO v Spotless Services Australia, the Federal Court has applied two different legal tests, creating uncertainty in the law.

MST Lawyers’ Overview of The Fairness in Franchising Report

The Parliamentary Joint Committee on Corporations and Financial Services on 14 March released its long-awaited report into Franchising. Franchisors should be cognisant of the recommendations made in this lengthy report and consider whether their business model needs adjustment to reflect the potential impact of the proposals and best practice generally. MST Lawyers have broken down the report highlighting some of the key recommendations.

Geowash Prosecuted By The ACCC – Yet Another Warning To Franchisors

In light of the recent successful prosecution of Geowash, franchisors should be vigilant in complying with their obligations under the Franchising Code of Conduct and the Australian Consumer Law, and in particular with their requirements to act in good faith, or risk attracting the attention of the ACCC which is intent on enforcing compliance in the franchise sector.