Fair Work Commission

The General Manager is the statutory head of Australian Public Service (APS) staff employed by the Commission. The General Manager is responsible under s.657(1) of the Fair Work Act for assisting the President in ensuring that the Commission performs its functions and exercises it powers. In addition, the General Manager has functions as a statutory officeholder concerning federally registered organisations under the Registered Organisations Act.

As the head of the Commission's administrative arm, the General Manager is responsible for the Commission's performance, financial management and compliance with regulatory requirements under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Public Service Act.

The General Manager is supported by an Executive team which meets fortnightly to discuss key planning and operational issues. The Executive team is, in turn, supported by a Senior Management Group and a range of management, oversight and staff committees.

Governance structure

Figure 19: Governance structure

Fraud management

The Commission has a fraud control plan and conducts fraud risk assessments regularly, including when there is a substantial change in its structure, functions or activities. The fraud control plan establishes mechanisms for preventing, detecting, investigating and reporting on fraud and suspected fraud within the Commission.

During 2015–16 the Commission updated its fraud risk policies to better align with the Commonwealth Fraud Control Framework, in addition to updating its fraud risk assessment framework. The Commission's approach to fraud management was independently reviewed by its internal auditors during 2015–16.

Fraud control plan

Annual Report 2015–16 Fraud Control Certification

In accordance with s.10 of the Public Governance, Performance and Accountability Rule 2014, I hereby certify that I am satisfied that the Fair Work Commission:

• has prepared fraud risk assessments and fraud control plans
• has in place appropriate fraud prevention, detection, investigation and reporting mechanisms that meet the specific needs of the commission
• has taken all reasonable measures to appropriately deal with fraud relating to the commission

22 September 2016

Bernadette O'Neill

General Manager

Significant finance law issues reported

The Commission has made no reports of significant non-compliance with the finance law as it relates to the Commission for the 2015–16 year. Finance law incorporates the PGPA Act, including rules and instruments created under the PGPA Act, and any appropriation Acts.

Risk management

Over the next four years the Commission's Corporate Plan prioritises embedding a contemporary risk management culture and practices across the organisation, in line with the risk management framework introduced by the PGPA Act.

The Commission's aim is to establish a high-quality organisation-wide risk management system with an emphasis on:

• reviewing the current risk management framework, policy and practices in line with the following principles:
  • governance arrangements provide sufficient delegation, accountability and oversight appropriate to the scope and significance of activities
  • communication about risk is clear, wide-reaching and effective
  • risks can be effectively escalated where necessary
  • risk is embedded as an integral part of day-to-day activities
  • all staff are responsible for actively managing risk
  • risk management is applied on a consistent and systematic basis across the organisation
  • staff and managers have appropriate risk management training, skills and assistance to undertake effective risk management across the organisation
  • risk management is aligned with the Commission's strategic objectives
• reviewing the organisational structure and project governance arrangements to fill operational and capability gaps
• reviewing corporate and procedural policies and arrangements to ensure that staff are appropriately informed about the scope of their role, their responsibilities and accountability so that they can perform their day-to-day activities to a high standard
• as part of workforce planning, review induction and training programs to provide training and development for staff concerning risk

The Commission updated its Risk Management Policy in June 2015 and ensured its alignment with the Commonwealth Risk Management Policy. The Commission's policy establishes a system of risk management and oversight.

Business continuity

During 2015–16 the Commission reviewed and subsequently improved its business continuity with further development of information and communication technology disaster recovery capabilities.

Having previously established a mirrored disaster recovery site, data networks, storage and server virtualisation were reconfigured and implemented across two environments located in different states. This resulted in improved service continuity and restoration times.

The new capability established in 2015–16 will allow for further improvements for applications and software in the next phase of the disaster recovery program.

Audit Committee

The role of the Audit Committee is to provide independent assurance to the General Manager on the Commission's financial and performance reporting responsibilities, risk oversight and management, systems of internal control and internal audit.

The General Manager appoints Audit Committee members. Three of the four Committee members are independent, satisfying the requirement that the majority of committee members be persons who are not officials of the Commission.

During 2015–16 the Audit Committee met four times. The Committee approved an updated internal audit plan and provided oversight of the Commission's risk management and internal control frameworks.

Internal audit activities

Ernst & Young were appointed as the Commission's internal auditors. The following internal audits were considered by the Audit Committee and finalised in 2015–16:

• Protective Security Policy Framework Review
• PGPA Act and Commonwealth Procurement Rules – Compliance Review
• Fraud Control Plan and Fraud Risk Assessment
• High level process review of the management of payment cards and management of cash

Planning

The Commission has a four year Corporate Plan 2016–2020 (Corporate Plan) with the following goals:

• The community understands the role of the Fair Work Commission and recognises it as an independent, expert tribunal
• The Fair Work Commission is accessible to all Australians, recognising the community's diverse needs and expectations
• The Fair Work Commission is accountable and transparent
• High levels of compliance with legislative obligations

Each year, the Corporate Plan is reassessed against operational and environmental factors, updated and published online by 31 August. The Corporate Plan is supported by business plans across all branches and aligned with staff performance plans.

Projects

Major Projects Control Committee

The Major Projects Control Committee is comprised of the Executive team and senior managers. The Committee is responsible for high-level strategic governance of major organisational and capital expenditure projects. Projects considered by the Committee in 2015–16 include development of the Commission's new website and replacement of the telephone system.

Performance & development framework

The Fair Work Australia Enterprise Agreement 2011–14 is supported by a performance and development framework.

The framework provides strong links between individual performance and development and the organisation's goals. All staff employed by the Commission for at least three months are required to have an individual Performance and Development Plan.

The framework is designed to encourage productivity by defining work and behavioural goals and aims to:

• identify professional development opportunities aligned with the Commission's core skills requirements
• recognise employee contributions beyond their immediate work area
• enable the development of goals common to a group of employees
• ensure that employee behaviour is consistent with APS values
• enable individual performance and development plans to be completed and monitored
• apply performance ratings consistently

Ethical standards

The Commission's ethical standards are governed by a legislative framework common to all non-corporate Australian Government agencies, including:

• Public Service Act
• Public Service Regulations 1999
• Australian Public Service Commissioner's Directions 2013
• PGPA Act

Values

All Commission staff are expected to uphold and act in accordance with the following APS Values:

• impartial
• committed to service
• accountable
• respectful
• ethical

The Values guide staff in their daily work and in their interactions with colleagues and the community. They are also embedded in the Commission's recruitment and performance management processes.

In addition to the APS Values, the Commission has developed the following cultural principles:

• Innovation – being innovative, agile and responsive. Using technology and innovation to replace manual tasks with more value-added activities. Encouraging and rewarding innovation and creating an environment that cultivates new ideas
• Collaboration – working collaboratively across the organisation to share collective knowledge, fostering a shared sense of purpose, achieving corporate goals and striving to meet community expectations
• Service excellence – being user-focused, making users' needs central to organisational processes and service delivery. Ensuring services are accessible, efficient, reliable and of the highest possible standard

Each year the Commission participates in the APS State of the Service census, which provides important information on employee engagement, leadership, workplace culture and capability and capacity. The results provide valuable insight into the Commission's culture and values.

Member & staff committees

For many years the Commission has had a number of committees constituted by both Members and senior staff which have had oversight of various activities.

Following consultation with Members, during 2015–16 the Commission revamped and reconstituted its committees.

Commission Rules and Benchbooks

For the first time, the newly constituted Rules and Benchbooks Committee includes external stakeholders with representatives from the Law Council, Australian Chamber of Commerce and Industry, AiGroup and the ACTU. The Committee's role is to consider changes to the Commission's Rules and forms and to develop and maintain benchbooks and practice notes. By providing direct input from the perspective of the Commission's users, external stakeholders play a key role in the operation of the new Committee.

New Approaches

As well as overseeing the capability and development of Members and staff involved in delivering the program, the New Approaches Committee coordinates, oversees and reports on the Commission's New Approaches activities.

International engagement

Members often share their expertise by engaging with dispute resolution agencies from various countries and with international agencies which impact on labour relations, such as the International Labour Organization.

The International Committee coordinates visits to the Commission by international delegations.

Access, engagement and communications

The Access, Engagement and Communications Committee oversees the Commission's engagement with external stakeholders and the community, including through the popular Workplace Relations Education Series of lectures, mock hearings and papers. As well as overseeing the production and maintenance of the Commission's information materials, the Committee identifies and harnesses opportunities for broader engagement with the Australian community, including through Member speaking engagements and participation in relevant forums.

Future Directions

Having overseen initiatives from the second phase of the Future Directions program in 2015–16, the Committee considers further initiatives to improve fairness and access, efficiency and accountability. This includes monitoring developments in other courts and tribunals in order to identify ways to continuously improve performance across the Commission.

Internal engagement

The Committee aims to strengthen organisational cohesion and collegiality by identifying opportunities to increase interaction between Members and staff. This includes coordinating induction processes for new Members and developing internal engagement initiatives such as the 'walk in my shoes' program. This new initiative in 2015–16 allows staff to build an understanding of work across the Commission by experiencing a working day in another team, branch or location.

Service charter & complaints

The Commission's Service Charter outlines the nature and level of services the public can expect from Commission staff (see Appendix I).

The charter also provides information on how to make a complaint or to provide feedback on the Commission's administrative activities.

The Commission relies on feedback and complaints received to better inform potential business improvements and service issues.

The Commission has a separate process for dealing with complaints about Members in accordance with the provisions outlined in the Fair Work Act. Implemented in March 2013, the Member Code of Conduct (PDF) sets out the process for making a complaint about a Member of the Commission. This code is published on the Commission's website.

Complaints

During 2015–16 the Commission received 144 written complaints. This is a decrease from the previous year, when 162 complaints were received.

Written complaints were responded to and finalised in an average of seven working days in 2015–16, with some taking longer to resolve than others, depending on the complexity of the complaint. This was within the Commission's service promise to respond to written complaints within 20 working days.

The majority of complaints received were in relation to the Commission's processes. A substantial number of these complaints involved issues that were outside its jurisdiction or arose from a fundamental misunderstanding of the process or authority of the Commission.

There was an increase in the number of complaints received in relation to unfair dismissal conciliations. A number of these complaints were from parties who did not fully understand limitations on the role of a conciliator in facilitating agreement between parties.

The Commission has sought to address these issues by providing simplified and accessible information on its new website.

1 Unfair dismissal conciliation includes conciliation processes and conciliator conduct.

2 Complaints relating to the outcome of a matter include decisions of the Commission. These matters generally cannot be dealt with through the complaints process and usually require a formal appeal of the decision to be lodged.

3 Administration includes administrative errors, staff conduct, errors with the website and lodgment system.

4 Complaints relating to the content of modern awards or enterprise agreements usually cannot be resolved through the complaints process and usually require a formal application to be lodged to amend or vary these instruments.

5 Process relates to either dissatisfaction with one of the Commission's processes or a fundamental misunderstanding of the process or the authority of the Commission.

6 Other includes complaints about not being able to find documents on the Commission's website.

External scrutiny

The Auditor-General issued an unqualified independent audit report on the Commission's 2015–16 financial statements. There were no other reports issued by the Auditor-General relating to the Commission in 2015–16.

There were no judicial decisions or decisions of administrative tribunals or the Australian Information Commissioner in 2015–16 that had, or may have had, a significant effect on the operation of the Commission. There were no reports on the operation of the Commission by a parliamentary committee or by the Commonwealth Ombudsman in 2015–16 and no agency capability reviews were released during the period.

Other reviews

There were two reviews into Australia's workplace relations framework in 2015–16. On 30 November 2015 the Productivity Commission delivered a report on its inquiry into the national workplace relations framework. The report was tabled in Parliament on 21 December 2015. The final report of the Royal Commission into Trade Union Governance and Corruption was released on 30 December 2016.

The General Manager and the Executive team attended Senate Estimates hearings on 22 October 2015, 11 February 2016 and 6 May 2016. The President attended the Senate Estimates hearing on 22 October 2015.

The General Manager assisted with the Post Implementation Review of the Fair Work Amendment Act 2013 into the anti-bullying provisions of the Fair Work Act.

Management of human resources

Statistics

At 30 June 2016, the Commission employed a headcount total of 306 staff (251 ongoing and 55 non-ongoing). This does not include Members of the Commission and is a decrease in headcount of 22 from the total number of ongoing and non-ongoing staff at 30 June 2015. The Commission did not have any casual employees as at 30 June 2014 or 30 June 2015.

Note: As at 30 June 2016 the Commission did not have any employees who identified as Aboriginal or Torres Strait Islander.

1 Total ongoing and non-ongoing employment numbers are for substantively held roles.

2 As at 30 June 2016 the Commission employed 31 conciliators at EL2 and EL1 levels with specialist skills whose roles are not managerial.

Diversity & inclusion

The Commission is committed to creating a working environment that values and utilises the contribution of its employees from diverse backgrounds and experiences.

The Commission's Workplace Diversity Strategy 2013–2015, which will be reviewed in 2016–17, provides a basis to strengthen relationships between the Commission and its employees by supporting an inclusive environment which looks beyond perceived differences. The strategy includes:

• Increasing the recruitment and retention of employees from culturally and linguistically diverse backgrounds
• Providing flexible working arrangements including part-time work, flex leave, home based work agreements and time off instead of payment for overtime worked. The Commission also offers access to purchased leave and provides assistance to parents returning to work
• Four weeks' paid parental leave for non-primary caregivers and an additional four weeks' paid maternity leave (taking paid maternity leave to a total of 16 weeks)
• A 'Keeping in Touch' program to assist primary carers to stay connected with the workplace

In 2015–16, the Commission amended all forms and policies to meet the Australian Government Guidelines on Recognition of Sex and Gender.

Recruitment & separations

During 2015–16, 50 new employees (ongoing or non-ongoing) commenced employment and 72 employees (ongoing or non-ongoing) departed the Commission.

New employees in 2015–16 commenced across all branches, with the largest number of new employees being recruited by the Member Support Team, the Unfair Dismissals Case Management Team, Victoria Associates Team and Registry Teams.

Conditions of employment

Fair Work Australia Enterprise Agreement 2011–14

The Fair Work Australia Enterprise Agreement 2011–14 (PDF) continued in force during the year while negotiations for a new enterprise agreement continued between staff and management bargaining representatives.

Flexible work

The Commission provides flexible working arrangements to help employees balance work and other responsibilities including:

• Part-time work — at 30 June 2016, 34 ongoing employees and one non-ongoing employee worked part-time. This is an increase of one compared with the number of part-time employees as at 30 June 2015
• Home-based work — as at 30 June 2016, three ongoing employees had a home based work agreement to combine ongoing work commitments with parental responsibilities and/or personal circumstances. This is a decrease of three compared with home based work arrangements as at 30 June 2015

Collective and individual agreements

All employees, excluding Senior Executive Service (SES) employees, are covered by the Fair Work Australia Enterprise Agreement 2011–14. As at 30 June 2016, the total headcount of employees covered by the enterprise agreement was 301. In 2015-16 the Commission had nine employees covered by an individual flexibility arrangement.

The Commission has four SES employees. Employment conditions for SES employees are set out in individual determinations made under s.24(1) of the Public Service Act. These determinations are comprehensive documents covering each SES employee's terms and conditions, with many conditions being aligned with the Commission's enterprise agreement.

Salary ranges

The table below shows salary ranges available to APS employees by classification level. Salary ranges are unchanged between 2014–15 and 2015–16.

Note: The General Manager is not included in this table. The General Manager is an independent statutory officer holder whose remuneration arrangements are determined by the Remuneration Tribunal.

* The figures reflect base salary only and excludes superannuation and other benefits.

** The General Manager determines the salaries of all SES staff.

Non-salary benefits

Non-salary benefits are available to employees through the Fair Work Australia Enterprise Agreement 2011–14, individual arrangements and other initiatives and include:

• time off instead of payment for overtime worked
• where available through the local metropolitan public transport authority, access to annual train, tram, bus and ferry tickets – the Commission pays the up-front cost and the employee then repays the amount fortnightly over a 12-month period
• healthy lifestyle initiatives such as subsidised yoga and pilates classes, annual flu vaccinations and an Employee Assistance Program

Performance pay

The Commission does not provide performance pay.

Learning & development

Individual professional development is directly linked to the Commission's performance and development framework and aims to create a more capable workforce to meet current and future needs.

The Commission continues to offer learning and development opportunities through a range of learning options, in line with the 70:20:10 model of learning and development which is widely used across the APS. The model consists of 70 per cent of learning from on the job experiences (experiential learning), 20 per cent from social/informal learning (particularly from a role model or coaching) and 10 per cent from training courses and reading (formal learning). Learning opportunities for staff includes short courses, a variety of eLearning modules, support for staff undertaking formal study, attendance at conferences and coaching/mentoring opportunities.

The Commission has implemented a number of successful learning and development projects during 2015–16, including a new Learning Management System. This system provides access to a suite of quality eLearning programs and other premium learning technology solutions that will improve flexibility, access and reporting across the agency. Work also commenced on the review and revision of the Commission's induction program, to ensure it meets the needs of the Commission's newest employees whilst providing essential legislative and local information.

A Learning and Development Strategy 2016–18 will be developed in the coming year to enable the Commission to develop targeted and timely learning and development that is aligned with the Commission's objectives.

In 2015–16 the Commission spent $483,217 (excluding GST) on learning and development for APS staff. This covered all staff training across the Commission, including studies assistance and core skills training in areas such as people management and leadership, administration, legislation, technology, project/program management and communication.

In 2015–16 the Commission delivered a formal leadership program for the Executive team and Senior Management Group. The program built on a range of previous initiatives and consisted of workshops, individual leadership profiles, leadership insight group sessions and executive coaching. As a result of the program, the Commission has:

• an agile leadership team, capable of working strategically to position the Commission for the future
• a formed leadership cohort able to work cross functionally to shape the organisational agenda
• Executive team members who can engage and enable staff and stakeholders to adapt to future needs
• Executive team members who have developed the capabilities appropriate for their career development

Staff Consultative Committee

The Staff Consultative Committee is established and maintained under the Commission's enterprise agreement. The Committee, which is a well-established consultative and communication forum that considers matters affecting the workplace, includes:

• the General Manager
• management representatives
• employee representatives
• a union official

Workplace health & safety

The Commission has work health and safety management arrangements (HSMA) consistent with the Work Health and Safety Act 2011 (WHS Act).

The HSMA set out a statement of commitment, a workplace health and safety policy, consultation arrangements, agreed employer/employee responsibilities and WHS structures and arrangements. The HSMA also set out arrangements for workplace inspections, training and information and emergency procedures.

Health and Safety Committee

The Commission has five working groups, nine health and safety representatives (HSRs) and a national Work Health and Safety Committee. The Committee met on three occasions in 2015–16.

Improvements

In 2015–16 the Commission continued to promote a proactive approach to work health and safety. During the year the most significant workplace health and safety initiatives were:

• strengthening quarterly reporting by managers through the provision of details of workplace health and safety matters raised, implemented and/or resolved
• providing workstation assessments and, where needed, rehabilitation case management services to meet the health, safety and rehabilitation needs of the workforce
• making the flu vaccination program available to all staff
• providing healthy lifestyle initiatives, including Yoga and Pilates programs at lunchtime
• participating in R U OK? Day, as part of a broader initiative promoting a more connected community
• conducting regular campaigns encouraging staff to use the Commission's Employee Assistance Program

Health and safety outcomes

The Commission is committed to maintaining and improving the health and wellbeing of its workforce. In 2015–16 there were no new compensation claims and 14 accidents/incidents involving employees were reported. The increase in the number of reported accidents/incidents as compared with the previous year reflects the Commission's proactive measures in 2015-16 to raise awareness of WHS across all of the Commission's offices.

The Commission closely monitors its compensation exposure and internal rehabilitation programs against broader APS consideration of compensation costs, the increasing incidence of longer-term injuries and more complex claims, including those of a psychological nature. The forecast workers' compensation premium rate has reduced for 2016–17, to 0.65 per cent. The forecast premium rate is well below the 2015–16 forecast premium for all agencies, which is 2.04 per cent.

Reportable accidents and occurrences

Under s.38 of the WHS Act, the Commission is required to notify Comcare of any notifiable accidents or dangerous incidents arising out of work undertaken by any of its employees. There was one reportable dangerous incident in 2015–16.

Investigations

Under Part 4 of the WHS Act, the Commission is required to report any investigations conducted during the year into any of its undertakings. No investigations were conducted in 2015–16.

Other matters

Under Division 7, Part 5 of the WHS Act, HSRs are entitled to issue provisional improvement notices to address immediate risks to improve health and safety performance. No notices were issued in 2015–16.

Disability reporting mechanism

Since 1994, non-corporate Commonwealth entities have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007–08, reporting on the employer role was transferred to the Australian Public Service Commission's State of the Service reports and the APS Statistical Bulletin.

These reports are available at apsc.gov.au. From 2010–11, entities have no longer been required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 2010–20, which sets out a 10-year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high level, two-yearly report will track progress against each of the six outcome areas of the strategy and present a picture of how people with disability are faring. Reports are available at dss.gov.au.