CEPU Communications Union

It appears that Telstra Management is pushing some of its employees to sign common law contracts which purport to govern employment conditions and wages.

Telstra is choosing the common law contract option because it no longer has access to new AWAs (Australian Workplace Agreements) or ITEAs (Individual Transitional Employment Agreements), because the Federal Government’s Fair Work Act has stopped any new AWAs or ITEAs. The only individual contract option available to employers now is a common law contract. In addition, they are still attempting to avoid putting employees on the EBA.

What are some of the problems with common law contracts?

In the first instance, the contract agreement can only be enforced by you in common law. That is, if Telstra is breaching your contract you must use the civil courts (Federal Court, High Court, etc) to try to redress the problem. This is outside the capability of most employees due to the costs alone.

With AWAs, ITEAs, or EBAs, disputes can be dealt with in the industrial law processes such as Fair Work Australia etc, which is a low cost (or no cost) jurisdiction and which is generally handled for members by the union or the union’s legal representatives.

In terms of the content of Telstra’s common law contracts, the following problems are obvious:

·         Many conditions of employment rely on Telstra policy which can be changed by Telstra at any time, unilaterally (e.g. leave loading, penalty payments for overtime, public holidays etc).

·         If you are required to work additional time you may or may not be paid overtime. It is not guaranteed.

·         You are not guaranteed any pay increases; they are totally reliant on Telstra management’s decision.

·         The contract requires you to comply with Telstra’s policies but you cannot force Telstra to comply with its own policies in regard to your employment. That is they can breach their own policies and you have no redress.

·         Any performance-related component of your remuneration is totally reliant on Telstra management. That is it is not guaranteed.

Given the above examples, before anyone signs a common law contract which is put in front of them, they should make sure that they get advice before signing. The union would be pleased to assist.