Unions will fund legal action to test Fair Work industrial laws

Businesses have been warned to become familiar with the Government’s new Fair Work regime, as unions prepare a litigation fund to help test cases after the new laws come in on July 1.

The Australian Council of Trade Unions agreed yesterday at its Brisbane conference that the fund will be part of a campaign with a “unique opportunity for unions to shape the interpretation” of the new legislation.

The campaign will build on the success from its 2007 ‘Your Rights At Work’ campaign.

“A case will be strategic because it tests an area of law that is important to building a culture supportive of employee rights, collective bargaining and union growth,” the official plan reads.

“Sharing of information and expertise, and securing high-quality advice and advocacy, will maximise the chance that strong precedents are established and harmful precedents are avoided.”

ACTU secretary Jeff Lawrence said that unions will seek to “get the maximum benefit out of the act”, focussing on bargaining and achieving larger protection schemes for independent contractors.

Peter Vitali, principal of CCI Lawyers and SmartCompany legal expert, says businesses must be aware of the new legislation to avoid unnecessary legal action.

“If they are uncertain about what they’re doing, they should get advice whether it be legal or otherwise. Businesses need to understand there are aspects of the rules which are changing pretty substantially and they can’t assume it’s business as usual.”

“The unions have successfully exploited the litigation process in the last 10 or so years, and it’s a pretty arid exercise for any business that gets caught up in it. In a lot of the litigation Lawrence is talking about, the onus is on the employer to show they haven’t done what they’re alleged to have done.”

Vitali says these cases are notoriously difficult to win, and the key is to simply get advice about anything the businesses may be doing differently with regards to employees.

“Just make sure you’re up-to-date with compliance issues, and communicate with employees effectively about any issue affecting the business.”