Making Textile, Clothing or Footwear products in …...ECA® Industry Training Presentation 1 July 2018 | Page Agreements to outsource: Outworkers Home based workersare entitled to

© 2018 Homeworker Code Committee Inc / Ethical Clothing Australia (ECA®)

Making Textile,Clothing or Footwearproducts in Australia

A guide to yourLegal Obligations

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.


ECA® Industry Training Presentation 1 July 2018 | Page

Introduction

This presentation is a guide to your obligations under the Textile, Clothing, Footwear and Associated Industries Award (TCF Award).

Before you begin, make sure you have a copy of the Ethical Clothing Australia (ECA®) Guide to the TCF Award.

The Guide and other documents referred to in this presentation can be downloaded from the ECA website or by contacting the ECA office.

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What laws apply to you?

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 TCF Award Guide). This includes the Modern Award, as well as federal and state legislation including:

• The TCF Award as amended from time to time.

• The Fair Work Act 2009 which includes the National Employment Standards (NES).

See TCF Award Guide page 28 for these and page 44, Clause F.5.1 of Schedule F of the TCF 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 TCF Award Guide.

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The TCF Award

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

In the TCF Industry, this is the TCF Award.

• The TCF Award applies to employers, Principals, outwork entities, factory workers and outworkers.

• The giving out of work in the TCF industry has been regulated by both federal and state clothing awards for decades.

• Schedule F of the TCF Award contains specific conditions for outworkers (referred to as ‘workers’ in Schedule F and sometimes called ‘homeworkers’) and the giving out of work in the TCF industry.

See pages 42–53 of the TCF Award Guide.

The TCF Award is designed to make sure workers across the entire industry receive fair pay and work in decent conditions.

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Your responsibilities

Some of your key responsibilities under the TCF Award include:

• 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)

See pages 5-6 of the TCF Award Guide.

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National Employment Standards (NES)

The National Employment Standards set out the key work-related entitlements for your employees and for outworkers, under the Fair Work Act 2009.

There are 10 minimum standards for employment which you must comply with:

1. Maximum weekly hours of work2. 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 28 of the TCF Award Guide for more information.

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

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How to comply with the TCF Award

If your business intends to give out work, there are 3 things it must first do to meet its legal requirements under the TCF Award:

• Register with the Fair Work Commission Board of Reference (BOR) and keep lists of who work is outsourced to.

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

• Make and keep up-to-date TCF Award compliant Work Records (garment specification sheet).

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Registration with the Board of Reference and keeping Lists

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.

See TCF Award Guide Schedule F pages 42 and 47 for:– clause F.3.1 Registration– clause F.6 Registration and Board of Reference

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Registration with the Board of Reference and keeping Lists

Under the TCF Award, you can only:

• Make an arrangement with a contractor if they are also registered with the Board of Reference (unless that business performs all the work within their own factory premises).

• Engage up to 10 individual outworkers, other than in-house employees, at any one time (If your business makes arrangements with more than 10 outworkers you must have written consent from the Textile, Clothing & Footwear Union of Australia [TCFUA] or Board of Reference).

If you give work out without being registered with the Board of Reference, you are breaking the law and may face penalties.

See TCF Award Guide Schedule F pages 42 and 47 for:– clause F.3.1 Registration – clause F.5.9

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How to Register with the Board of Reference

• Board of Reference application forms are available from ECA, the Fair Work Commission, and the TCFUA.

• Complete and return the form (ECA and the TCFUA can help you complete the form if you have any questions).

• You will be given a registration number which you will need to use for documents such as Work Records (for queries regarding your registration call the Fair Work Ombudsman helpline on 13 13 94).

• You must renew your registration with the Board of Reference annually (unless there has been some concern about your compliance with the TCF Award or you have not provided sufficient information to support your application, your registration will normally be renewed for another 12 months).


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BOR forms available from ECA and the TCFUA

How to Register with theBoard of Reference

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Keeping BOR Lists

Along with your Board of Reference registration, you must make lists 4 times a year, including:

• The name and address of each principal or person with which you make an arrangement, and whether you have a written agreement with each of them; and

• Whether they have an arrangement with others to give work out.

You must send a copy of the quarterly list to:

• The Fair Work Commission; and• The TCFUA Branch in your state

When?

• Within seven days of the last working day of each of February, May, August and November financial quarters.


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Keeping BOR Lists

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Agreements to outsource: Principals

If you intend to give out work you must 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 TCF Award both you and they are called a Principal.

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SampleWritten agreementwith another PrincipalEditable copy of this Written Agreement available on the ECA website

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http://ethicalclothingaustralia.org.au/wp-content/uploads/2016/03/Template-Written-Agreement-with-a-Contractor.doc



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 TCF 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.

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Agreements to outsource: Outworkers

Home based workers are entitled to the minimum safety net of terms and conditions which apply in the TCFindustry. This includes the conditions in the TCF 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 TCF 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 TCF Award Guide page 39 for checklist for making an arrangement and TCF Award Guide Schedule F pages 44-46 for:

̶ clause F.5.2 Hours of work̶ clause F.5.2 and 5.5 Payment̶ clause F.5.7 Stand down information

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Sample Written agreement with an outworker

Editable copy of this Written Agreement available on the ECA website

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http://ethicalclothingaustralia.org.au/wp-content/uploads/2016/03/Template-Written-Agreement-with-a-Homeworker.doc



How to make and keep Work Records

Each time you outsource work:

• Your business must create and keep a Work Record (sometimes called a Garment Specification Sheet). The Work Record must include the time (including sewing time) for the work required and the total make price.

• You must give a copy of this Work Record to the person completing the work before the work begins.

• Copies of Work Records should accompany the relevant garments, articles or material all the way through the contracting chain, down to the worker who ultimately carries it out.

• Keeping Work Records is crucial to ensure transparency of supply chains. Under the TCF Award, you must keep work records for 6 years (clause F.7.2).

See page 8 and page 42 (Clause F.3.2) of the TCF Award Guide.

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Your Work Record must include:

• Business name, address, ABN/ACN and/or registered business number.

• Business’s Board of Reference registration number.

• Name and address of the person to whom the arrangement applies.

• Address(es) where the work is to be performed.

• Time and date for beginning and completion of the work.

• Description and nature of the work required and the garments, articles or material to be worked on (including diagrams where available and details of the type of garment or article, seam type, fabric type, manner of construction and finishing).

• Number of garments, articles or materials of each type.

• Make time for the work required on each garment, article or material (and able to verify how it was calculated).

• Price to be paid for each garment, article or material.


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Sample Work Record (Maker)

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Editable copy of thisWork Record availableon the ECA website

http://ethicalclothingaustralia.org.au/wp-content/uploads/2016/03/Template-Work-Record-for-a-Contractor.xls




When making a work record with an outworker, in summary, it must contain:

• Time and date that the garments, articles or materials will be given to the outworker before work begins, and picked up when completed.

• Time Standard (make time) details you used in order to work out the time it took to make the product.


• Number of working hours needed to finish the work, calculated by multiplying: the number of garments by the make time per garment, article or material, and any additional tasks.

• Hours and days in the ordinary work week. This is to make sure there is enough lead time from the date of commencement, to finish the work.

• The total amount to be paid to the outworker for their hours and days.

See pages 26–27 of the TCF Award Guide for how to calculate an outworker’s pay rate.

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Sample Work Record (Outworker)

Editable copy of thisWork Record availableon the ECA website

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http://ethicalclothingaustralia.org.au/wp-content/uploads/2016/03/Template-Work-Record-for-a-Homeworker.xls



Checklist: Working with another Principal

Your Written Agreement with the other business contains the required minimum terms – pages 13 and 34 TCF Award Guide.

Registration with the Board of Reference – page 7 TCF Award Guide.

Lists of arrangements your business enters into with others, using the list in the Board of Reference forms – page 8 TCF Award Guide.

Supplying copies of List to the Board of Reference and the TCFUA 4 times a year.

The business with whom you are making an arrangement is also registered with the Board of Reference (if applicable) – page 7 TCF Award Guide.

Work Record (including a make time) as specified in the TCF Award Guide –pages 10 and 37 TCF Award Guide.

Work Record given to the business with whom you are making an arrangement, before work starts. Note: this includes sampling as this is part of your business.

See page 40 of the TCF Award Guide for a Checklist Diagram.

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Checklist: Employing an outworker

Signed written agreement detailing the hours of work in accordance with the TCF Award – page 16 TCF Award Guide.

Registered with the Board of Reference – page 7 TCF Award Guide.

Keep Lists of this and other arrangements your business enters into with others, using the list in the Board of Reference forms – page 8 TCF Award Guide.

Work Record (including a make time) as specified in the TCF Award Guide – page 10 and 38 TCF Award Guide.

Work Records have the required extra information for arrangements with outworkers – pages 18 - 21 TCF Award Guide.

Time Standard used to calculate the time (including sewing time) for the work required – page 25 TCF Award Guide.

Copy of Schedule F of the TCF Award given to the outworker – pages 42 - 53 TCF Award Guide.

Correct minimum TCF Award conditions being provided – pages 18 - 19 TCF Award Guide.

Paying the outworker on a weekly basis – page 17 TCF Award Guide.

Making sure that all materials, trimmings, threads, products, garments or articles are delivered to and collected from the outworker at no cost to them – page 15 TCF Award Guide.

See pages 39 of TCF Award Guide for Checklist Diagram and page 30 for other laws employers need to comply with.

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Skill levels

Refer to the TCF Award 2010 (Schedule B – Classifications/skill levels and Schedule C –Definitions).

Skill levels are set out under Schedule B in the TCF Award:

B.1 TraineeB.2 Level 1B.3 Level 2B.4 Level 3B.5 Level 4B.6 Level 5

Definitions of tasks, skills, activities and methods relating to skill levels, are set out in Schedule C of the TCF Award.

If you are unsure about your employees’ skill level, contact the TCFUA for assistance.

To read these Schedules online, visit the Fair Work Commission’s website at www.fwc.gov.au/documents/modern_awards/award/MA000017/default.htm.

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http://tcfua.org.au/state-branches/contact-us



Skill levels and minimum payment rates

The table below sets current wage rates under the TCF Award as of 1 July 2018

Classification/ Hourly Minimum WeeklySkill Level Wage Rate

Trainee $18.93 $719.201 $19.47 $739.902 $20.22 $768.303 $20.91 $794.704 $22.04 $837.405 $23.42 $889.90

Above rates are for permanent workers.

Please note that Skill Level 3 is the minimum wage for outworkers and that it is illegal under the TCF Award to employ an outworker on a casual basis.

Casual in-house factory workers are entitled to receive a casual loading.

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Skill levels and minimum payment rates

To calculate an outworker’s pay rate:

a) calculate how many minutes it takes to do the work (including ancillary tasks).

b) factor in any work to be done on a Saturday, Sunday and Public Holiday.

c) calculate the total amount to be paid.

Refer pages 26 – 27 of your TCF Award Guide.

The weekly rates may increase each year. Always check the current version of the TCF Award for the most up-to-date rates.

Visit the Fair Work Commission at www.fwc.gov.au to register for TCF Award Updates (‘Quick Links’ – ‘Subscribe to updates’).

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Make Price

When working out the ‘make price’ for a garment or product, overheads should be included in the calculation.

The make price must be enough to make sure that

• Any workers (including outworkers) employed directly by the Principal, as well as

• Any workers employed by the Principal’s outsourced maker/contractors (including outworkers)

receive correct wages and conditions under the TCF Award.

The make time covers all processes of the manufacture or value adding of an item or garment.

On top of that allow the operational costs of the maker.

Principals are liable for underpayments to workers in their supply chain so it’s important to make sure you get these right.

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The Make Price Calculation

Workers at Skill Level 3:

Skill level 3 is the classification under the TCF Award for a worker responsible for the construction of a finished garment or working unsupervised. Remember that Skill Level 3 is the minimum wage for outworkers. You must allow a minimum of $0.47* per minute to make sure you are covering the worker’s TCF Award wage and entitlements (which include personal and annual leave, public holidays, Super).

In addition:

A principal giving work to a maker/contractor should also cover overhead costs and a profit for the maker/contractor in the make price.

These amounts will vary depending on a number of factors:

The location of the business; business rental/utilities costs, city/regional costs differences, scale of operations, intellectual property and volume of garments/products being produced.

See page 25 of the TCF Award Guide for how to calculate the time (including sewing time) for the work required.

*This amount may change as TCF Award rates of pay can change each year.

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The Make Price Calculation

The Make Price is:

The make time x the total cost per minute*:

Cost of employing someone (at TCF Award Skill Level 3 it’s 0.47 cents per minute)

+

Cost of contractor overheads including profit margin (0.XX cents per minute)

= Total cost per minute (i.e. the ‘make price’) (0.XX cents per minute)

See page 25 of the TCF Award Guide for how to calculate the time (including sewing time) for the work required.

*This amount may change as TCF Award rates of pay can change each year.

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Make PriceThe 47c figure Labour Cost Recovery calculations

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MACHINIST WAGENumber of working weeks 44 weeks per yearAward Level 3 20.91$ hourly rate Weekly Rate per TCF Award 794.70$ Super contribution 9.50% 9.5% of weekly rate 75.50$ Long Service Leave 0.01969697 rate of accrual per week Weekly Rate x Rate of Accrual 11.44$ Annual Leave 0.090909091 rate of accrual per week Weekly Rate x Rate of Accrual 72.25$ Loading at 17.5% 4 x weekly rate x 17.5% / working week 12.64$ Sick Leave hourly x 76hrs / working week 36.12$

1,002.65$ 8% W/C 1,082.86$

Total Weekly - all inclusive 1,082.86$

Per hour all inclusive 28.50$ Per minute all inclusive 0.47$

Minute Rate under Sch F

From 1 July 2017

F5.4(b)(i)F.5.4(b)(ii)F.5.4(b)(iii)F5.4(b)(iv)

General - Clause 20.1Weekly1/2280 x Weekly1.5x Minute Rate2x Minute RatePublic Holiday = 1/5 x Weekly

Trainee - NB not generally relevant694.900.30480.45720.6096138.98

Skill Level 1 - NB not generally relevant714.900.31360.47030.6271142.98


Skill Level 3767.800.33680.50510.6735153.56

Skill Level 4809.100.35490.53230.7097161.82

Skill Level 5859.800.37710.56570.7542171.96

From 1 July 2016






Skill Level 3743.300.32600.48900.6520148.66

Skill Level 4783.300.34360.51530.6871156.66

Skill Level 5832.300.36500.54760.7301166.46

From 1 July 2015






Skill Level 3725.900.31840.47760.6368145.18

Skill Level 4764.900.33550.50320.6710152.98

Skill Level 5812.800.35650.53470.7130162.56

from 1 July 2014






Skill Level 3708.200.31060.46590.6212141.64

Skill Level 4746.200.32730.49090.6546149.24

Skill Level 5793.000.34780.52170.6956158.60

from 1 July 2013






Skill Level 3687.600.30160.45240.6032137.52

Skill Level 4724.500.31780.47660.6355144.9

Skill Level 5769.900.33770.50650.6754153.98

from 1 July 2012






Skill Level 3670.200.29390.44090.5879134.04

Skill Level 4706.100.30970.46450.6194141.21996

Skill Level 5750.400.32910.49370.6582150.08

from 1 July 2011






Skill Level 3651.300.28570.42850.5713130.26

Skill Level 4686.200.30100.45140.6019137.24

Skill Level 5729.300.31990.47980.6397145.86

from 1 July 2010






Skill Level 3629.900.27630.41440.5525125.98

Skill Level 4663.600.29110.43660.5821132.72

Skill Level 5705.300.30930.46400.6187141.06

Outworker Make Rate

COST COMPONENTS FOR GARMENT COSTINGS - YEAR COMMENCING 1 JULY 2014

MACHINIST WAGE

Number of working weeks 44weeks per yearYearlyWeekly

Award Level 3$ 18.64hourly rateWeekly Rate per TCF Award$ 708.20$ 36,826.40$ 708.20

Super contribution9.50%9.5% of weekly rate$ 67.28$ 3,406.44$ 65.51

Long Service Leave 8.730.0196969697rate of accrual per weekWeekly Rate x Rate of Accrual $ 10.20

Annual Leave0.0909090909rate of accrual per weekWeekly Rate x Rate of Accrual $ 64.382750.852.9

Loading at 17.5%4 x weekly rate x 17.5% / working week $ 11.27481.399.2575

595.422911.4504403846

Sick Leavehourly x 76hrs / working week$ 32.191375.426.45

$ 893.52

8% W/C`$ 965.00

Total Wage$ 965.00

Per hr all inclusive$ 25.39

Per minute$ 0.42

WEEKLY COSTS PER GARMENT - Cue logicEXAMPLE ONLY

Overheads based on 1000 unitsOther costs per garment

Rent or Mortgage$100.00Hanger$ 1.00

Insurance$100.00Cotton $ 1.00

Maintenance$100.00Ticketing$ 1.00

Transport$100.00Delivery$ 1.00

Electricity$100.00Pick up$ 1.00

Phone$100.00Sorting$ 1.00

Cleaning$100.00Other costs per garment sub total$ 1.00

Accountant$100.00

Profit Margin$100.00

Add other relevant$100.00



Etc.$100.00

Sub total$1,300.00

Standard Costs (at 2008 $3.50)

Overhead cost per Garment$ 1.30Total weekly cost (adjusted for inflation as per Australian Bureau of Stat, from 2008)March, 08, 4.2%- March, 09, 2.5%- March, 10, 2.9%$ 2.53

Labor cost component 2013$25.39$0.42

Makers profitlabor cost +standard$27.92

10% of the making price less STANDARD COSTSadd 10% profit$30.71

add 20% profit$33.51$0.56

Mins ________ x .34c = $___________+10% + $3.50 =C31C=$ +10%+$3.64=$0.56=$ PRICE

&Z&F

Labor Cost Percentages - OT

How does a Working Year fit into a Year?NOTES

WEEKS

A Full Year52

Less:Entitlement

Annual leave4 weeks4Plus 17.5% Leave Loading

Public Holidays in days102

Personal/Carers Leave10 days2

A Working Year44This is the actual number of weeks worked ie: employee takes all entitlements (A6,A7,A8)

What cost loadings should be applied to cover legal entitlements?Public Holidays in each of the states

Insert relevant days into calculation and amend formula in C17

EntitlementWeeksFormula% to AddACT11

Annual leave4 weeks4(4 / 44) x (100 / 1) x 17.5%10.68%NSW10

Public Holidays - VIC11 days2.2(2 / 44) x (100 / 1)5.00%NT11(1 varies depending on region)

Personal/Carers Leave10 days2(2 / 44) x (100 / 1)4.55%Qld12(2 are BNE only)

Long Service LeaveSee Calculation below for %1.97%SA12

SuperannuationCurrent mandatory payment9.25%Tas12

Workers CompensationEstimated typical current %7.00%Vic11

Total Cost Recovery %38.44%WA10

Unclear how workers compensation rate is calculated?

Long Service Leave Calculation:

LSL accrual rate based on each states' legislative provisions

The slight variations in percentage relates to how each legislation words the entitlement

normal yearworking year

Hours/WeekWeeksHours per Year% to AddACT0.01667307690.01970454558.67 weeks after 10 years

1 Working Year38441672NSW0.01667307690.0197045455e.g. 2 months after 10 years

1 Working Month384.33165NT0.0250.029545454513 weeks after 10 years

Qld0.01666730770.01969772738.667 weeks after 10 years

5 years + 1 month38224.338525SA0.0250.029545454513 weeks after 10 years

4.41 weeks384.41168Tas0.00166538460.00196818188.66 weeks after 10 years

Vic0.01666666670.0196969697accrue at rate of 1 week for every 60 weeks

% Cost Recovery168 / 8525 hours expressed as a %1.97%WA0.01666730770.01969772738 2/3 weels after 10 years

Total % =40.41%



Case studies: Work arrangements

EXAMPLE: White Tee Shirts Pty Ltd makes an arrangement with Tommy Tees Pty Ltd to get 200 T-shirts printed. Tommy Tees agrees to do the work on their own factory premises.

Single arrangement between 2 principals (you and another principal)

EXAMPLE 1: Etty Betty Kids Pty Ltd makes an arrangement directly with an outworker, Jen, to get flower badges sewn onto 10 children’s frocks, 15 hoodies and 30 tees.

Single arrangement between a principal and a worker (outworker)

EXAMPLE 2: Paul, a dressmaker, enters into an arrangement with Molly’s Fashions to produce and finish 20 dresses in 3 days. Molly’s Fashions is run by the Rose family at their home and is a registered company with an ABN.

NOTE: Mrs Rose does the work at home, sometimes with the help of her husband. Because they do the work from their home (i.e. non-business premises) Mr and Mrs Rose are legally classified as ‘workers’ i.e. outworkers.

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Multiple work arrangements

When your business needs a range of services to meet production needs or more capacity, you may enter into multiple arrangements with other principals and/or outworkers. The principals may in turn make their own arrangements with other principals or other outworkers to get the work completed.

Note: You can still be held responsible for the correct TCF Award wages and entitlements.

This diagram shows the owner of Old Kent Road Fashions making arrangements with makers Adam, Bob and Carla, and outworker Penny.

The owner of Old Kent Road Fashions is responsible for paying enough to the makers Adam, Bob and Carla to allow them to pay the relevant TCF Award obligations to their in-house employees, outworkers and sub-contractors. The owner of Old Kent Road Fashions is also responsible for paying the correct TCF Award wage and entitlements to Penny the outworker.

This is important: Under the Outworker Provisions in the TCF Award, your business is responsible even if you don’t directly engage outworkers.

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Case studies: Extended liability

Jane is an outworker that Lucy (the subcontractor) has made an arrangement with. However, Jane knows she is making garments for Old Kent Road Fashions because of the label she sews into garments. Jane has not received her correct TCF Award wages and entitlements from Lucy. Within 6 months of completing the work, Jane notifies the owner of Old Kent Road Fashions of her underpayments,

Under the TCF Award, the owner of Old Kent Road Fashions can withhold payment from Carla (Principal D) until Jane (outworker) receives her correct pay and entitlements. Carla may also withhold payment to Lucy (Subcontractor) until correct payment is made to Jane.

If the above options are not utilised, then Old Kent Road Fashions will be held responsible for the correct wages and entitlements owed to Jane (outworker).

By keeping your supply chains shorter, your business is more likely to keep its making costs down and comply with the TCF Award.

See pages 22–24 of the TCF Award Guide.

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What are the consequences of not complying with the TCF Award?

What happens if I don’t meet my legal obligations?

Businesses may be fined up to $63,000 for each breach of the TCF Award.

However, the courts have imposed significant fines on businesses found to have committed multiple breaches of the TCF Award, even where those businesses haven’t directly engaged any external workers.

Businesses also risk adverse publicity and reputational damage if they are found to be involved in unlawful practices.

Individuals may also be fined up to $12,600 for each breach of the TCF Award.

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Other Resources

TCF AWARD AND FAIR WORK ACT INFORMATION

FAIR WORK OMBUDSMAN13 13 94 www.fairwork.gov.au Information about Australia's workplace law, conditions, dispute resolution, and wage rates and skill levels.

FAIR WORK COMMISSION1300 799 675www.fwc.gov.auTCF Award, Fair Work Act and registering to receive TCF Award updates.

TRANSLATING SERVICES

TRANSLATING AND INTERPRETING SERVICE (TIS NATIONAL)

24hr phone interpreting 131 450On-site interpreting www.tisnational.gov.auThe Fair Work Ombudsman website also has information sheets in many languages.

INDUSTRY CONTACTS

AUSTRALIAN INDUSTRY GROUP (AiGroup)

1300 55 66 77www.aigroup.com.au

NSW BUSINESS CHAMBER/ AUSTRALIAN BUSINESS LAWYERS & ADVISORS

1300 565 846 www.ablawyers.com.au

TEXTILE, CLOTHING & FOOTWEAR UNION OF AUSTRALIA (TCFUA)

(03) 9639 29551800 800 135www.tcfua.org.au

37

https://www.fairwork.gov.au/https://www.fwc.gov.au/https://www.tisnational.gov.au/https://www.aigroup.com.au/https://www.ablawyers.com.au/http://tcfua.org.au/


ECA® Industry Training Presentation 1 July 2018 | Page 38

More Information

Ethical Clothing Australiawww.ethicalclothingaustralia.org.au

EthicalClothingAustralia

@EthicalClothing

@ethicalclothingaustralia

http://ethicalclothingaustralia.org.au/https://www.instagram.com/ethicalclothingaustralia/https://www.facebook.com/EthicalClothingAustralia/https://twitter.com/ethicalclothing

Slide Number 1Slide Number 2What laws apply to you?The TCF AwardYour responsibilitiesNational Employment Standards (NES)How to comply with the TCF AwardRegistration with the Board of Reference and keeping ListsRegistration with the Board of Reference and keeping ListsHow to Register with the �Board of Reference Slide Number 11Keeping BOR ListsKeeping BOR ListsAgreements to outsource: PrincipalsSample�Written agreement�with another PrincipalAgreements to outsource: Outworkers Agreements to outsource: Outworkers Slide Number 18How to make and keep Work RecordsHow to make and keep Work RecordsSample Work Record (Maker)How to make and keep Work RecordsSample Work Record (Outworker)Checklist: Working with another PrincipalChecklist: Employing an outworkerSkill levelsSkill levels and minimum payment ratesSkill levels and minimum payment ratesMake PriceThe Make Price CalculationThe Make Price CalculationSlide Number 32Case studies: Work arrangementsMultiple work arrangementsCase studies: Extended liabilityWhat are the consequences of not complying with the TCF Award?Other ResourcesSlide Number 38

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Making Textile, Clothing or Footwear products in …...ECA® Industry Training Presentation 1 July 2018 | Page Agreements to outsource: Outworkers Home based workersare entitled to