Workplace Consultation

Workplace consultation refers to internal communications within a company or organisation. It is important for employers to understand the benefits of engaging in workplace consultation before making decisions that are going to affect employees, and during times when a workplace is facing a challenge or going through a transition. Employers also need to be clear about their legal requirements to undertake workplace consultation in certain situations. This page deals with the law and workplace consultation in Australia.

Why engage in workplace consultation?

In some situations, employers are obliged by law to consult with their employees before taking an action or implementing a change. In other situations, workplace consultation is not required by law, but is good practice and has many benefits.

Having a culture of workplace consultation can lead to better productivity, better relationships with staff and better managerial decisions. In many cases, employees have experience and ideas to share with management that can help a company to improve how it operates and make the best decisions about changes to the workplace.

Engaging in workplace consultation does not fetter a manager or managerial team from making the final decision. Rather, it leads to employees feeling more engaged in the process due to having their ideas, concerns and suggestions heard and considered.

Workplace consultation and the Fair Work Act 2009

The majority of workplaces in Australia are governed by the Fair Work Act 2009, which applies to all national systems employees. The Fair Work Act 2009 sets out the situations where employers must undertake workplace consultation. There are listed below.

Hours of work

Employers must consult with workers about their regular roster or hours of work. Employees must be given the opportunity to give their views and have those views considered.

Unpaid parental leave

When an employee is taking any form of unpaid parental leave with the exception of flexible unpaid parental leave, they must be consulted before a decision is made that is likely to have a significant effect on their status, pay or location.  

Enterprise agreements

All enterprise agreements must include a term that specifies that the employer must consult with employees about any major changes to the workplace that are likely to significantly affect them, and about any proposed changes to their roster of regular hours of work. Employees must be given the chance to give their views and their views must be considered.

Termination of more than 15 employees

When 15 or more employees are terminated for economic, technological, structural or similar reasons and one or more of those employees is a union member, the union must be consulted. Centrelink must also be notified about the proposed terminations.

Workplace health and safety

There may also be requirements for employers to consult with staff who have workplace health and safety or welfare issues. These requirements exist under state and territory laws on workplace health and safety.  Employers should contact their state or territory’s work health and safety body for information about these requirements.

Consulting with staff

It is important for all employers to carefully consider how they will approach workplace consultation. The best way to consult with employees will depend on the nature of the business, its size, location and the types of challenges and changes it is likely to face. It is best practice to have an internal communications strategy setting out how information will be sought from and provided to staff. This document should set out how information is to be communicated to and from staff and who is responsible for managing this. Communication practices should be authentic, targeted, regular and two-way.

The Fair Work Ombudsman has produced a best practice guide that provides more detailed information about how employers should approach workplace consultation.    

If you require legal advice or representation in any legal matter, please contact Go To Court Lawyers.