Company Fined $90,000 For Requiring Unreasonable Hours of Work

An employer has been fined more than $90,000 in back payments and penalties due to unreasonable work hours. This is due to the employment contract requiring the employee to work ordinary hours up to 50 hours per week, with no overtime payments and no option to refuse the additional work hours.

In the case of Australasian Meat Industry Employees Union v Dick Stone Pty Ltd (2022), Dick Stone Pty Ltd was found in breach of the Fair Work Act and the Industry Award for requiring an employee to work in excess of 38 hours per week without considering if the additional hours were reasonable. Although the employment contract defined the employees' ordinary hours as 50 hours per week, it failed to refer to overtime and mention the relevant Award. The employee had only been living in Australia for a few weeks and expressed that they did not have knowledge of Australian Law and employment rights at the time.

The Court considered factors such as the employees’ vulnerable situation, risks associated with work health and safety, and the absence of overtime pay in concluding that the hours were unreasonable. The Court also noted that the employment contract failed to mention the relevant Award and employee’s right to refuse unreasonable additional hours.

As an employer, it is important to understand the legal obligation and potential risks associated with unreasonable hours of work. The Fair Work Act 2009 (Section 62) states that a full-time employee must not be requested or required to work more than 38 hours per week unless the additional hours are reasonable. Furthermore, an employee has the right to refuse to work additional hours if they are unreasonable.

Under the Fair Work Act, employees can work additional hours on a voluntary basis if considered reasonable, and this should be compensated as overtime hours. The employer also has limitations when requesting or requiring employees to work additional hours. If an employer is found to have requested or required unreasonable additional hours, they may be in breach of the Act and liable for civil penalties.

Reasonable hours of work depend on the individual circumstances of each case. The following are some suggestions for employers when reviewing how additional hours are worked and deemed reasonable:

• Review employment contracts to ensure they are clear and reasonable regarding overtime and additional hours of work.
• Clearly communicate the reasons and duration of additional work.
• Provide reasonable notice before making the request to work additional hours.
• Monitor workload to avoid excessive hours and burnout.
• Provide appropriate compensation including overtime pay and keep accurate records of hours worked.
• Consult with employees and seek their input regarding any requests for additional hours of work.
• Consider legal obligations.
• Prioritize work-life balance.

For assistance with employment contracts and managing ordinary hours of work and reasonable additional hours of work, please contact our HR Team on 07 3273 0800.