Making Textile, Clothing or Footwear products in Australiaethi ECA Industry Training Presentation 2015

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  • Making Textile, Clothing or Footwear products in Australia

    This presentation is provided in the way of general information. Every effort has been made to ensure that the representations made here are accurate but you should familiarise yourself directly with the obligations imposed by the relevant legislation and Awards or seek independent legal advice. This is not a substitute for legal advice.

    A guide to your Legal Obligations

  • ECA Industry Training Presentation 2015 | Page 2

    Introduction

    • This presentation is a guide to your obligations under

    the Textile, Clothing, Footwear and Associated

    Industries (TCFAI) Award (the Award).

    • Before you begin, make sure you have a copy of the

    Ethical Clothing Australia (ECA) Guide to the Award

    The Guide and other documents referred to in this

    presentation can be downloaded form the ECA

    website or by contacting the ECA office.

  • ECA Industry Training Presentation 2015 | Page

    What laws apply to you?

    3

    Almost all businesses in the textile, clothing and footwear (TCF) industry

    in Australia are covered by the National Workplace Relations System (see

    pages 3-4 of the Award Guide). This includes the Modern Award, as well

    as federal and state legislation including:

    • The Textile, Clothing, Footwear and Associated Industries Award

    2010 as amended from time to time.

    • The Fair Work Act 2009 which includes the National Employment

    Standards (NES).

    See Award Guide page 29 for these and page 44, clause F.5.1 of Schedule F of the

    Award.

    • and any other relevant laws, such as:

    – State Outworker laws;

    – Workers Compensation;

    – Workplace Health and Safety;

    – Equal Opportunity; and

    – Anti-discrimination laws.

    See page 30 of the Award Guide.

  • ECA Industry Training Presentation 2015 | Page

    The Award

    4

    Each industry or occupation is covered by a national Modern Award.

    In the TCF Industry, this is the Textile, Clothing, Footwear and Associated

    Industries Award 2010.

    • The Award applies to employers (referred to as Principals) and

    factory workers and home based workers (who are both referred to

    as workers).

    • The giving out of work in the TCF industry has been regulated by

    both federal and states clothing awards for decades.

    • Schedule F of the Award contains specific conditions for outworkers

    (referred to as ‘workers’ in Schedule F and sometimes called

    ‘homeworkers’).

    See pages 41–53 of the Award Guide.

    The Award is designed to make sure workers across the entire industry

    receive fair pay and work in decent conditions.

  • ECA Industry Training Presentation 2015 | Page

    The Award – your responsibilities

    5

    Your key responsibilities under the Award:

    • Consultation (Part 2)

    • Dispute Resolution (Part 2.10-11)

    • Types of employment (Part 3)

    • Termination of employment (Part 3.18 and 3.19)

    and redundancy

    • Rates of pay and Allowances (Parts 4 and 5)

    • Hours of work and related matters (Part 6)

    • Leave and Public Holidays (Part 7)

    • Superannuation (Part 8)

    • Transitional provisions (Part 1 and Schedule A)

    See pages 5-6 of the Award Guide.

  • ECA Industry Training Presentation 2015 | Page

    National Employment Standards (NES)

    6

    The National Employment Standards set out the key work-related

    entitlements for your employees, under the Fair Work Act 2009.

    There are 10 minimum standards for employment which you must comply

    with:

    1. Maximum weekly hours of work

    2. Requests for flexible working arrangements

    3. Parental leave and related entitlements

    4. Annual leave

    5. Personal/carer’s leave and compassionate leave

    6. Community service leave

    7. Long service leave

    8. Public holidays

    9. Notice of termination and redundancy pay

    10. Provision of a Fair Work Information Statement

    See page 29 of the Award Guide for more information.

    These entitlements are in addition to your obligations under the Award.

  • ECA Industry Training Presentation 2015 | Page

    How to comply with the Award

    7

    If your business intends to give out work, there are 3 things it must first

    do to meet its legal requirements under the Award:

    • Have a Written Agreement with anyone that does your work.

    • Register with the Fair Work Commission Board of Reference (BOR)

    and keep lists of who work is outsourced to.

    • Make and keep up-to-date award compliant Work Records (garment

    specification sheet).

  • ECA Industry Training Presentation 2015 | Page

    Agreements to outsource: Principals

    8

    If you intend to give out work the first thing you must do is enter into a written

    agreement with whoever you are outsourcing work to.

    These can be with another principal business, or with an outworker, and there

    are different obligations for each.

    The first step is to define who you are entering an agreement with.

    Principals

    If you are making an arrangement with a:

    • Business or person that may enter into agreements to have work done

    outside its premises (is registered with the Board of Reference); or

    • Business or person that employs people in the TCF industries; or

    • Government or government authority; who is operating out of a business

    premises

    Then you are most likely making an agreement with another principal business.

    Under the Award they are called a Principal.

  • ECA Industry Training Presentation 2015 | Page 9

    Sample Written agreement with another Principal

    Editable copy of this Written Agreement

    available on the ECA website

  • ECA Industry Training Presentation 2015 | Page 10

    Agreements to outsource: Outworkers

    You are making an agreement with a Worker (outworker) if the person:

    • Does the work at private residential premises, either their own or

    someone else’s; or

    • Does the work at premises not conventionally regarded as being

    business premises; or

    • Personally does the work that is the subject of the arrangement; or

    • Is employed by you, but does not carry out their work on your

    business premises; or

    • Has an ABN or calls themselves a ‘contractor’ or ‘independent

    contractor’, and does the work themselves; or

    • Is a body corporate owned or managed by the worker or a member

    of their family.

    See Award Guide Schedule F, pages 42–43, sections F.2.3, F.2.6 and F.4.

    Contact the Textile, Clothing and Footwear Union (TCFUA) for more information

    about your particular situation....

    You can also contact the Australian Industry Group or the NSW Business Chamber for

    assistance.

  • ECA Industry Training Presentation 2015 | Page 11

    Agreements to outsource: Outworkers

    Home based workers are entitled to the minimum safety net of terms and conditions which

    apply in the TCF industry. This includes the conditions in the Award, and most of the Fair Work

    Act. These include:

    • Award compliant work record (e.g. garment spec sheet)

    • Award compliant written arrangement in place

    • Award level wages and entitlements

    • Superannuation contributions paid by employer

    • Annual leave, Personal Leave and Public Holidays

    • Work cover insurance

    • Specified hours

    Note: You must also give outworkers a copy of the entire Schedule F of the Award when you

    employ them.

    Minimum part-time hours for outworkers are 15 regular hours per week (as agreed between

    the principal and worker) or 10 regular hours per week (as agreed between the principal and

    worker, and with the consent of the TCFUA). By such agreement, regular part-time hours may

    be averaged over a period of 4 weeks maximum. Overtime rates must be paid for additional

    hours.

    See Award Guide page 39 for checklist for making an arrangement and Award Guide

    Schedule F pages 44-46 for:

    - clause F.5.2 Hours of work

    - clause F.5.2 and 5.5 Payment

    - clause F.5.7 Stand down information

  • ECA Industry Training Presentation 2015 | Page 12

    Sample Written agreement with an outworker

    Editable copy of this Written Agreement

    available on the ECA website

  • ECA Industry Training Presentation 2015 | Page

    Registration with the Board of Reference and keeping Lists

    13

    You must be registered with the Board of Reference (BOR) unless all of

    your garments or products are produced solely by your employees at

    your business premises.

    This includes any aspect of production being performed outside of your

    premises, including cutting, making, finishing, trimming, alteration, value-

    adding (e.g. printing, embroidery), by either outworkers (referred to as

    ‘workers’ in Schedule F) or other manufacturers.