WORKERS RIGHTS IN ARCHITECTURE 17% of architecture firms surveyed - PowerPoint PPT Presentation

BEGINNERS GUIDE to WORKER’S RIGHTS IN ARCHITECTURE

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. 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. 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, 5 th year graduates, registered architects • Modern Manufacturing Associated Industries Award – 2017 – 3 rd 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 Covered by the approved Architecture Architects Award course 3rd Year Covered by the Graduated from a 3 Manufacturing and year degree (not Associated Industries Graduate currently studying) and Occupations Award 2010 5th Year Covered by the Graduate Architect Architects Award Graduate

3. 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 5 th 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 5 th 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. 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