WORKER'S RIGHTS BEGINNERS GUIDE IN ARCHITECTURE - to - CplusC Architectural Workshop

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WORKER'S RIGHTS BEGINNERS GUIDE IN ARCHITECTURE - to - CplusC Architectural Workshop
BEGINNERS GUIDE
        to
WORKER’S RIGHTS
  IN ARCHITECTURE
WORKER'S RIGHTS BEGINNERS GUIDE IN ARCHITECTURE - to - CplusC Architectural Workshop
17% of architecture firms
 surveyed reported paying
salaries below the Award.
                    ACA Salary Survey Findings, 2017
                http://aca.org.au/article/2017-salary-survey-findings
If we don’t value the time
 of architectural staff, our
   clients won’t either…
If your architectural skills and thinking
are valuable enough to sell to a client,
they’re valuable enough to be paid
         for by your employer.
Underpayment is
  wage theft
1.
  KNOW YOUR RIGHTS
As Aretha Franklin said – R.E.S.P.E.C.T
KNOW YOUR RIGHTS

National Employment
Standards
• 10 standards that apply to everyone
• You cannot contract out of these standards
• Includes the right of full time workers to:
    • 10 paid days of personal leave. Personal leave
      includes sick leave and carer’s leave (for
      parents or other carer’s)
    • Four weeks of paid annual leave
• A copy of the FairWork 10 point info sheet must
  be provided to you. Check the date.
• Find out more at: FairWork.gov.au
2.
KNOW YOUR AWARD & CLASSIFICATION
   “Why are you keeping this curiosity door locked?”
KNOW YOUR AWARD AND CLASSIFICATION

Architects Award 2010
• Architect’s Award – applies to active undergrad and
  masters students, 5th year graduates, registered architects
• Modern Manufacturing Associated Industries Award – 2017
  – 3rd year graduates, drafters, architectural technicians
• Modern Miscellaneous Award – 2017 – Interior Designers
• Modern Clerks Award – 2017 – Other staff
• Rates are indexed – new ones apply from July 1!
Find out more at:
    • Association of Consulting Architects Australia
       (ACA.org.au)
    • FairWork.gov.au
What am I???
            Actively studying an
Student    approved Architecture
                   course
                                     Covered by the
                                    Architects Award

3rd Year    Graduated from a 3
             year degree (not
                                      Covered by the
                                    Manufacturing and
                                   Associated Industries

Graduate    currently studying)      and Occupations
                                       Award 2010

5th Year    Graduate Architect
                                     Covered by the
                                    Architects Award
Graduate
3.
           CASE STUDIES
How does this apply to me in the real world?
CASE STUDY

Sham Contracting
        My boss asked me to get an ABN and invoice them instead
        of paying me. Is that legit?
        • Some contracting arrangements are designed to avoid
          paying employee entitlements like sick leave, tax and
          superannuation obligations. These are known as sham
          contracts and are unlawful
        • In general, if you are working as directed for a single firm,
          it’s likely it will be regarded as a sham contract
        • Becoming an independent contractor can have a range of
          other consequences, including tax bills, Centrelink
          eligibility and legal responsibilities and Visa implications
CASE STUDY

The Labour of Love
        I’m so excited to be working on real projects and getting
        experience, I’m happy to work for free!
        • Under the Fair Work Act, only work experience that is a
          formal requirement of your study program (i.e. counts for
          credit) can be unpaid
        • The Fair Work Ombudsman provides information on
          student placements, work experience and unpaid trials
        • Unpaid work exclude people with caring and financial
          obligations from participating and reduces the diversity of
          the architectural profession
CASE STUDY

The ‘Above Award’ Scenario
        I’m paid above the minimum rate, so the award doesn’t
        apply, right?
        • It depends
        • Some aspects of the award and NES will always apply
        • Being paid above the award doesn’t automatically mean
          all aspects don’t apply
CASE STUDY
The ‘Above Award’ Scenario (cont)
             Collective Bargaining Agreements (CBA)
                •   Negotiated for on behalf of all employees at a workplace, often with a union
                •   Cannot takeaway NES conditions (e.g. you can’t agree to less annual leave)
                •   Supersede the Award in some areas
                •   Must be registered with the Fair Work Commission
                •   “Better Off Overall Test”
                •   Find out if your work has one or have a look at others (search “architect”)
                •   E.g. All staff agree to work an extra 8 minutes a day in exchange for having a
                    Christmas shut down period as well as annual leave entitlements

             High Income Threshold
                • $148 000 per annum guaranteed income (excluding bonuses etc)
                • No unfair dismissal protection
                • If you qualify for this, teach me your ways!!
CASE STUDY
The ‘Above Award’ Scenario (cont)
             Individual Flexibility Agreements
                • Allows you to negotiate certain conditions (overtime & penalty rates, leave
                  loading, allowances)
                • Cannot be a condition of employment
                • Once made, IFA conditions are protected as if they are award conditions (so a
                  new team leader can’t take them away)
                • The “Better Off Overall Test” (BOOT) to check you’re not disadvantaged
                • Can include clauses that are non-standard:
                    • e.g Syh Khang would prefer to work through Christmas and take Lunar
                      New Year off;
                    • Tim has Tuesday & Thursday mornings off for swimming training;
                    • Hannah prefers to work 7-3pm
CASE STUDY

The ‘Above Award’ Scenario (cont)

• There is limited case law on what is ‘reasonable overtime’ within
  architecture, as the award is relatively recent
• ‘Reasonable overtime’ requests must take into account the personal
  circumstances of the employee
• If you are unsure or unclear on any aspect of your agreement, seek
  specialist legal advice prior to signing any employment agreement
  which will vary your rights
CASE STUDY

Minimum Award Offer
        Full Time 5th Year Grade with No Overtime
             • Minimum pay rate is $24.87 / hour
             • 38 hours per week, 7.6 hours per day (base hours)
             • $945 per week

             After 1 year working no overtime you should be paid:

             $49,143.12    Base Salary
             $4,668.58     Superannuation (base hours, 9.5%)
             $661.54       Leave Loading (17.5% on 4 weeks annual leave)

             Total: $54 473.24 (inc super)
             Total: $49 804.66 (exc super)
CASE STUDY

Minimum Award Offer
        Full Time 5th Year Grade with Paid Overtime
             •   Minimum pay rate is $24.87 / hour
             •   Minimum overtime rate is $37.31 / hour (1.5x base rates)
             •   38 hours at award pay rate is $24.87 / hour = $945.06
             •   7 hours overtime at award rate of $37.31 / hour = $261.17 (8:30 – 6pm, ½ hour lunch)
             •   Income is $1206/week

             After 1 year working with paid overtime you should be paid:

             $49,143.12      Base Salary
             $4,668.58       Superannuation (base hours only, 9.5%. $89.78/week)
             $661.54         Leave Loading (17.5% on 4 weeks annual leave)
             $12 536.16      Overtime earnings

             Total: $67 009.40 (inc super)
             Total: $62 340.82 (exc super)
CASE STUDY

Who would you rather be?
  $75 000 (including super), 5 hours unpaid   $60 000 ex super, no overtime
  overtime per week

  Excluding super: $68 493                    $60 000

  4 weeks holiday: 4 x 38 = 152 hours         4 weeks holiday = 152 hours

  Hours worked each year:                     Hours worked each year:
  43 hours per week, 48 weeks per year        38 hours per week, 48 weeks per year
  43 x 48 = 2064 hours                        38 x 48 = 1824 hours

  Hourly rate is $30.91                       Hourly rate is $30.36
Overtime can be
21% of your take
  home pay!!
4.
                        HOT TIPS!
noun – a timely and likely helpful piece of advice or information
To convert between hourly and annual
salary, double the hourly rate and add three
zeros

e.g. $30/hour is roughly $60 000, or $59 280
The award does not include superannuation

Superannuation minimum is 9.5% per
annum

Your contract should be explicit on whether
superannuation is excluded or included
The market is currently buoyant – be bold!
Moral Rights and Intellectual Property (IP)
check these clauses carefully
Check the Non-Compete clause
carefully, important if you wish to do
your own side work
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