Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles

and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Business ethics has both normative and descriptive dimensions. As a corporate practice and a career specialization, the field is primarily normative. Academics attempting to understand business behavior employ descriptive methods. The range and quantity of business ethical issues reflects the interaction of profit-maximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporations promote their commitment to non-economic values under headings such as ethics codes and social responsibility charters. Adam Smith said, "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices."[1] Governments use laws and regulations to point business behavior in what they perceive to be beneficial directions. Ethics implicitly regulates areas and details of behavior that lie beyond governmental control.[2] The emergence of large corporations with limited relationships and sensitivity to the communities in which they operate accelerated the development of formal ethics regimes.[3]

Law and regulation

Very often it is held that business is not bound by any ethics other than abiding by the law. Milton Friedman is the pioneer of the view. He held that corporations have the obligation to make a profit within the framework of the legal system, nothing more. [206] Friedman made it explicit that the duty of the business leaders is, "to make as much money as possible while conforming to the basic rules of the society, both those embodied in the law and those embodied in ethical custom".[207] Ethics for Friedman is nothing more than abiding by 'customs' and 'laws'. The reduction of ethics to abidance to laws and customs however have drawn serious criticisms. Counter to Friedman's logic it is observed that legal procedures are technocratic, bureaucratic, rigid and obligatory where as ethical act is conscientious, voluntary choice beyond normativity.[208] Law is retroactive. Crime precedes law. Law against a crime, to be passed, the crime must have happened. Laws are blind to the crimes undefined in it.[209] Further, as per law, "conduct is not criminal unless forbidden by law which gives advance warning that such conduct is criminal.[210] Also, law presumes the accused is innocent until proven guilty and that the state must establish the guilt of the accused beyond reasonable doubt. As per liberal laws followed in most of the democracies, until the government prosecutor proves the firm guilty with the limited resources available to her, the accused is considered to be innocent. Though the liberal premises of law is necessary to protect individuals from being persecuted by Government, it is not a sufficient mechanism to make firms morally accountable.[211][212][213][214]

Corporate policies
This section needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (March 2011) As part of more comprehensive compliance and ethics programs, many companies have formulated internal policies pertaining to the ethical conduct of employees. These policies can be simple exhortations in broad, highly generalized language (typically called a corporate ethics statement), or they can be more detailed policies, containing specific behavioural requirements (typically called corporate ethics codes). They are generally meant to identify the company's expectations of workers and to offer guidance on handling some of the more common ethical problems that might arise in the course of doing business. It is hoped that having such a policy will lead to greater ethical awareness, consistency in application, and the avoidance of ethical disasters. An increasing number of companies also require employees to attend seminars regarding business conduct, which often include discussion of the company's policies, specific case studies, and legal requirements. Some companies even require their employees to sign agreements stating that they will abide by the company's rules of conduct. Many companies are assessing the environmental factors that can lead employees to engage in unethical conduct. A competitive business environment may call for unethical behaviour. Lying has become expected in fields such as trading. An example of this are the issues surrounding the unethical actions of the Saloman Brothers. Not everyone supports corporate policies that govern ethical conduct. Some claim that ethical problems are better dealt with by depending upon employees to use their own judgment. Others believe that corporate ethics policies are primarily rooted in utilitarian concerns, and that they are mainly to limit the company's legal liability, or to curry public favour by giving the appearance of being a good corporate citizen. Ideally, the company will avoid a lawsuit because its employees will follow the rules. Should a lawsuit occur, the company can claim that the problem would not have arisen if the employee had only followed the code properly. Sometimes there is disconnection between the company's code of ethics and the company's actual practices. Thus, whether or not such conduct is explicitly sanctioned by management, at worst, this makes the policy duplicitous, and, at best, it is merely a marketing tool. Jones and Parker write, "Most of what we read under the name business ethics is either sentimental common sense, or a set of excuses for being unpleasant."[215] Many manuals are procedural form filling exercises unconcerned about the real ethical dilemmas. For instance, US Department of Commerce ethics program treats business ethics as a set of instructions and procedures to be followed by 'ethics officers'.,[31]

some others claim being ethical is just for the sake of being ethical.[216] Business ethicists may trivialize the subject, offering standard answers that do not reflect the situation's complexity.[208]

[edit] Ethics officers

This section needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (March 2011) Ethics officers (sometimes called "compliance" or "business conduct officers") have been appointed formally by organizations since the mid-1980s. One of the catalysts for the creation of this new role was a series of fraud, corruption, and abuse scandals that afflicted the U.S. defense industry at that time. This led to the creation of the Defense Industry Initiative (DII), a pan-industry initiative to promote and ensure ethical business practices. The DII set an early benchmark for ethics management in corporations. In 1991, the Ethics & Compliance Officer Association (ECOA) originally the Ethics Officer Association (EOA)was founded at the Center for Business Ethics (at Bentley College, Waltham, MA) as a professional association for those responsible for managing organizations' efforts to achieve ethical best practices. The membership grew rapidly (the ECOA now has over 1,200 members) and was soon established as an independent organization. Another critical factor in the decisions of companies to appoint ethics/compliance officers was the passing of the Federal Sentencing Guidelines for Organizations in 1991, which set standards that organizations (large or small, commercial and noncommercial) had to follow to obtain a reduction in sentence if they should be convicted of a federal offense. Although intended to assist judges with sentencing, the influence in helping to establish best practices has been far-reaching. In the wake of numerous corporate scandals between 200104 (affecting large corporations like Enron, WorldCom and Tyco), even small and medium-sized companies have begun to appoint ethics officers. They often report to the Chief Executive Officer and are responsible for assessing the ethical implications of the company's activities, making recommendations regarding the company's ethical policies, and disseminating information to employees. They are particularly interested in uncovering or preventing unethical and illegal actions. This trend is partly due to the Sarbanes-Oxley Act in the United States, which was enacted in reaction to the above scandals. A related trend is the introduction of risk assessment officers that monitor how shareholders' investments might be affected by the company's decisions. The effectiveness of ethics officers is not clear. If the appointment is made primarily as a reaction to legislative requirements, one might expect little impact, at least over the short term. In part, this is because ethical business practices result from a corporate culture that consistently places value on ethical behaviour, a culture and climate that usually emanates from the top of the organization. The mere establishment of a position to oversee ethics will most likely be insufficient to inculcate ethical behaviour: a more systemic programme with consistent support from general management will be necessary.

The foundation for ethical behaviour goes well beyond corporate culture and the policies of any given company, for it also depends greatly upon an individual's early moral training, the other institutions that affect an individual, the competitive business environment the company is in and, indeed, society as a whole.

[edit] Academic discipline

As an academic discipline, business ethics emerged in the 1970s. Since no academic business ethics journals or conferences existed, researchers published in general management journals, and attended general conferences. Over time, specialized peerreviewed journals appeared, and more researchers entered the field. Corporate scandals in the earlier 2000s increased the field's popularity. As of 2009, sixteen academic journals devoted to various business ethics issues existed, with Journal of Business Ethics and Business Ethics Quarterly considered the leaders.[217] The International Business Development Institute[218] is a global non-profit organization that represents 217 nations and all 50 United States. It offers a Charter in Business Development (CBD) that focuses on ethical business practices and standards. The Charter is directed by Harvard, MIT, and Fulbright Scholars, and it includes graduate-level coursework in economics, politics, marketing, management, technology, and legal aspects of business development as it pertains to business ethics. IBDI also oversees the International Business Development Institute of Asia[219] which provides individuals living in 20 Asian nations the opportunity to earn the Charter.

[edit] Religious views

Main article: Religious views on business ethics In Sharia law, followed by many Muslims, banking specifically prohibits charging interest on loans.[citation needed] Traditional Confucian thought discourages profit-seeking. [220] Christianity offers the Golden Rule command, "Therefore all things whatsoever ye would that men should do to you, do ye even so to them: for this is the law and the prophets."[221]

[edit] Related disciplines

Business ethics is part of the philosophy of business, the branch of philosophy that deals with the philosophical, political, and ethical underpinnings of business and economics. Business ethics operates on the premise, for example, that the ethical operation of a private business is possiblethose who dispute that premise, such as libertarian socialists, (who contend that "business ethics" is an oxymoron) do so by definition outside of the domain of business ethics proper.[citation needed] The philosophy of business also deals with questions such as what, if any, are the social responsibilities of a business; business management theory; theories of individualism vs. collectivism; free will among participants in the marketplace; the role of self interest; invisible hand theories; the requirements of social justice; and

natural rights, especially property rights, in relation to the business enterprise.[citation

needed]

Business ethics is also related to political economy, which is economic analysis from political and historical perspectives. Political economy deals with the distributive consequences of economic actions. It asks who gains and who loses from economic activity, and is the resultant distribution fair or just, which are central ethical issues.
[citation needed]

Employee Rights
All employees have the right to a workplace where ethical standards are followed, fraud, waste, and abuse are not tolerated, and they are treated with respect. It is the Service's policy and expectation that all employees will maintain especially high standards of honesty, impartiality, character, and conduct to ensure the proper performance of Government business and the continual trust and confidence of the citizens of the United States. The conduct of employees must:
reflect the qualities of courtesy, integrity, and loyalty to the United States; a deep sense of responsibility for the public trust; promptness in dealing with and serving the public; and a standard of personal behavior that reflects positively upon and will be a credit to both employees and the Service.

These principles apply to official conduct as well as private conduct that affects in any way the ability of employees or the Service to effectively accomplish the work of the Department.

Employee's Responsibilities
Be familiar and comply with the Standards of Ethical Conduct for Employees of the Executive Branch contained in 5 CFR 2635 and generally outlined in the Principles of Ethical Conduct as well as any supplemental Departmental and Service conduct and ethics regulations. Consulting with their supervisors and ethics counselors on general questions regarding the applicability of the standards of conduct regulations.

Supervisor's Responsibilities
Permit new employees a minimum of 1 hour of official duty time for the purpose of reviewing Part I of EO 12731 and 5 CFR 2635

Requesting assistance where needed from appropriate ethics counselors in advising employees on ethics and conduct issues.

Notifying their supervisor of any outside work or activity that they will perform frequently or on a standardized schedule.

Reviewing employee notifications of outside work or activities to determine if there is any conflict of interest with their official duties and responsibilities or the appearance thereof. Forwarding employee requests to conduct outside work for a prohibited source to the appropriate servicing ethics counselor. Reporting any potential conflict of interest situations to the respective ethics counselors for resolution. Ensuring that employees who are responsible for filing financial disclosure reports receive at least 1 hour of annual ethics training.

Request, in writing, permission to conduct outside work for a prohibited source.

Carrying out the announced policies and programs of the Department and obeying the proper requests and directions of supervisors. Certain employees are required to file a financial disclosure report. This is defined in the Service manual, 212 FW 2. Ensure that all studies or investigations adhere strictly to established scientific protocols and report any concerns with the directors of the research.

Employees may be subject to disciplinary and/or adverse action, including removal from Federal service, resulting from failure to comply with any conflict of interest laws, regulations, orders, or policies; or obey the proper requests of supervisors having responsibility for employee performance. Chapter 6: Ethics and the Law: Employee Rights and Employer Responsibilities
Business ethics has taken a central role in many of the corporate debacles in recent history. Thus, ethics has become a particularly important topic in the management of human resources. Organisations notably adopt three distinct ethical perspectives: traditional perspective, human resource perspective and societal perspective. Ethics is not solely a managerial responsibility but a responsibility of all stakeholders. Theory postulates a number of decision-making models that cover different elements of an ethical decisionmaking process. Rests (1986) model for individual ethical decision making and behaviour, and Jones (1991) issue contingent model of ethical decision making, are two such examples. The decision outcomes of ethical reasoning are dependent on three elements: the level of cognitive moral development; the ethical climate; and the national culture. Business ethics is also instilled to a certain degree by the employment law, which imposes legal obligations, HRM legislation and a level of risk management in organisations. Employment law is also intrinsically linked to employee relations that cover issues such as occupational health and safety. Current issues in workplace health and safety include: visual impairment, repetitive strain injuries, back injuries and stress, to name a few. As

such, managing health and safety is a crucial part in maintaining a healthy organisation. Another topic this chapter addresses is workplace negotiating. According to negotiation theory, people approach negotiation from one of two perspectives: cooperative or competitive. From a HR perspective, it is important that managers are aware of the power differences that exist in the workplace and the influence this has on the negotiation process. For example, the power that managers havedue to their hierarchical status, or the collective power of trade unions. In effect, negotiation is a decision-making process which involves six steps, from the conception of the conflict to its formal documentation. A successful negotiation process draws on the need to adopt a win-win framework to encourage and facilitate a fair, or just outcome for all parties involved.

Duties of employees
Employees have health and safety duties as well as employers. This reflects the fact that for good safety management it is essential for the employer and employees to work together. An employee's duties are to:

take reasonable care of the health and safety of themselves and of others who may be affected by what they do or do not do cooperate with the employer on health and safety matters not misuse any equipment that is provided for safety purposes (eg fire extinguishers or safety goggles) follow instructions from the employer on health and safety matters and attend relevant health and safety training report hazards and defects observed in the workplace.

Most school or college health and safety policies include these duties.

Need further advice?

Your first point of contact is your ATL rep in your school or college. Your local ATL branch is also available to help with queries, or you can contact ATL's member advisors on tel: 020 7930 6441 or email us. Please have your membership number to hand when telephoning and include it with any correspondence - this will help us to answer your query more quickly.

POWERS AND DUTIES OF OFFICERS AND EMPLOYEES The Department disposes its business allotted to it in accordance with the authority, responsibility and obligations as defined in the

Government of India (Transaction of Business) Rules. Formulation, execution and review of policies in relation to business allotted to this Department is taken up under directions of the Commerce Minister. 2. The powers of the officers and the employees are derived from the various Government rules, instructions, executive orders etc. issued from time to time by the respective nodal departments. The officers and employees of this Department exercise powers and perform duties as delegated to them by various Government Departments such as Department of Personnel, Ministry of Commerce, Ministry of Finance and other nodal departments. An indicative list of these Rules/Manuals is attached. The nodal Ministries/Departments viz. Ministry of Personnel, Public Grievances & Pensions, and Ministry of Finance etc. are the custodian of these Rules/Manuals. These Rules/Manuals/Instructions are under the direct control of these nodal Ministries/Departments and amendments to these rules are also undertaken by these Departments from time to time. These rules guide the financial and administrative transactions in day to day processing/dealing of various cases, whereas authority/power to process a particular case is derived from the above said Rules/Manuals. Procedure for performance of secretariat work has been laid down in the Manual of Office (MOP) and the Notes on Office Procedure (NOP) which is issued and controlled by the Department of Administrative Reforms and Public Grievances. All Government Departments including Department of Commerce follow the procedures strictly in accordance to the procedure as outlined in the MOP. Amendments in the MOP are also carried out by the Department of Administrative Reforms and Public Grievances from time to time. 3. Financial powers to deal with any financial proposal in the Department is derived from the Delegation of Financial Power Rules which has been issued by the Ministry of Finance. However, to expedite decisions and improve efficiency, the financial powers rested with the Department have been further delegated to Head of Departments as envisaged in DFPRs. The Office Orders outlining these delegations are enclosed.

Employment Issues
Employment related issues now account for nearly 10% of the issues dealt with annually by Citizens Advice bureaux in Northern Ireland and is the third largest area of enquiry after benefits and debt. It is an area that is currently experiencing significant growth in the number of people seeking advice as the impact of the economic downturn takes hold. To help identify major areas of concern and recommend policies to address these issues Citizens Advice has produced a policy report entitled In The Dark. A summary of the report, which was launched at Stormont on the 2nd December 2008, is available below.

In addition, Citizens Advice has published a comprehensive range of fact sheets covering all of the main areas of basic employment law. The Statutory Employment Rights fact sheet is available in a number of non-English languages. Click the image below to access twenty-five Employment Rights fact sheets. Find out about maternity/paternity rights, redundancy, discrimination, holidays and more.

Problem Employees: A Guide for Managers

Managing difficult or poorly performing employees is probably a manager's least favorite task. Nevertheless, it is a necessary function and one that should be taken seriously. A problem employee can range anywhere from the not so serious, such as someone who is chronically late for work each day, to the more serious, such as a person engaged in harassment of a colleague. Problem employees need to be managed carefully. Sometimes the issues are small and can be resolved quickly; in other instances, more serious intervention may be necessary. Consider the following strategies as you think about the best way to handle what are often quite typical issues in the workplace. And remember, you're not alone. Don't allow the problem to fester. The longer you wait before confronting the

employee, the greater the possibility for serious damage. Neglecting the issue can only make it worse. It's best to deal with the problem soon after it arises. Customize the discipline. No two problem employees are alike, which means that the consequences for their behavior whether it's being late to work, rude to colleagues, and/or poor performance need to be catered to the specific issue. Be clear. Often the problem employees are completely oblivious to their behavior. Indeed, when you do confront them they may be surprised. It is crucial that you not only have documentation that lays out the problem, but that you are also able to clearly and succinctly articulate the issues. Talk about it. Talking might seem obvious, yet it's easy to neglect one of the easiest management tools around. Sometimes the problem may be rectified after a brief conversation. In other cases, however, you might need to discuss an issue over a longer period of time. Just as no two people are the same, no two problems are identical. Write it down. Documenting disciplinary issues is essential. You've heard of the old "paper trail," and without it you may find it difficult to establish a history of problem behavior. Talk to your human resources department about the best way to maintain an employee's personnel file. Be sure to also read Tips on Documentation of Employee Performance and Conduct. Assign a mentor. If the problem employee doesn't already have a mentor with whom he or she can discuss work-related issues, find one as soon as possible. A mentor can offer a safe refuge, a sounding board, and expert advice on how to be successful. Naturally, you'll need to be forthright with whomever you seek out. Don't spring any surprises on a colleague; let him or her know that you have concerns and explain why.

Consider additional training. Many times problems arise because people simply

don't know how to do their jobs. Additional training can help. But before you dole out big bucks for a workshop make sure you know what needs correcting. Does the employee need to be more organized? Would a business writing course enhance this individual's communication skills? Perhaps a full day of computer training might minimize the problem. In any case, make sure the employee's skills are compatible with the assigned work. Provide steady feedback. Paying attention to a problem and then attending to it is part of your job as a manager. It is essential for you to offer your employees feedback. Without proper feedback an employee is unlikely to know if he or she is making progress. But don't overdo it; too much might come across as micromanagement. Be prepared. Even the most diplomatic managers will face obstacles if they are unprepared for the myriad personnel problems that typically arise in the workplace. You may be accused of being a cynic, but know your problems; it will save you time and aggravation when they do arise (and they will). Know the distinctions, too. Having a bad attitude is different and perhaps not as easy to fix from delivering sloppy work.

Arts Law Centre of Australia

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Arts Law Information Sheet

Employment issues (for NSW employees)

This information sheet provides information about employment law for employees in NSW.

In this information sheet:

1. Introduction 2. The difference between employees and contractors 1. Control test 2. The situation of artists and otherwise skilled workers 3. Volunteers 3. Copyright and employment 1. Copyright ownership 2. Moral rights 4. Workplace health and safety 5. Workers compensation 6. Discrimination in the workplace 7. Minimum conditions and other employer obligations 1. National Employment Standards 2. National Employment Standards for casual employees 3. Making a complaint 8. Tax matters 1. Employees 2. Contractors 9. Superannuation 1. Employees' contributions 2. Contractors 10. Termination 1. Notice requirements 2. Termination Pay 3. Unfair dismissal 4. Special considerations for employees of small businesses 5. Unlawful termination 11. Further information

Introduction
If you work as an employee, contractor or volunteer for an individual or organisation, it is important that you are aware of your rights. An employer must comply with various legal requirements related to your working conditions and other minimum conditions of employment. If the employer fails to meet these obligations, you may be able to force them to comply. As of January 1, 2010, all New South Wales private sector employers and employees are covered by the federal industrial relations scheme the Fair Work Act 2009 (Cth). You should read this information sheet carefully to understand how recent changes in the law may affect your rights and responsibilities.

The difference between employees and contractors

Not every individual who performs services is considered an employee. In order to assess your rights as a worker, you must first determine whether you are an employee

or a contractor. Contractors (independent contractors or freelancers) perform specific services without detailed control by the employer. Whether you are characterised as an employee or contractor has important consequences, especially in terms of minimum conditions of employment, workers compensation, intellectual property and superannuation.

Control test
The traditional test used to determine the difference between employees and contractors depends largely on control - the power (whether exercised or not) of the employer to direct how the work is carried out. If the worker appears to be running his/her own enterprise with independence in the conduct of his/her operations, the worker is most likely a contractor. If the worker operates as a representative of the employers business with little or no independence in the conduct of his/her operations, he/she is most likely an employee.

The situation of artists and otherwise skilled workers

However, in situations where specialised skills are required, workers often exercise more discretion over their work and rely less on the employers direct instruction or control. Similarly, the employer is unlikely to give, and the worker to accept, directions about the manner the work should be done if a workers task is to carry out skilful or creative work, for example a cartoonist supplying comic strip drawings to a newspaper. Such a person may, however, still be considered an employee for the purpose of determining the employers legal obligations. Therefore, a more flexible approach to the traditional "control test" is necessary in the artistic context or in other fields requiring a high level of skill. In those situations, an "organisational test" is usually more appropriate to determine whether the person is an employee or a contractor:

the person is an employee if he/she is employed as part of the business and his/her work is an integral part of it; the person is a contractor if his/her work is not integrated into the business but only an accessory to it.

Generally, other factors may be considered in determining whether a worker is an employee or contractor, including:

whether the person receives a periodic wage (employee) or is paid per task (contractor); whether the person sells his/her labour (employee) or only the product of his/her labour (contractor); whether the person is supplied with equipment (employee) or provides their own equipment (contractor); whether the person is merely an individual worker (employee) or part of a company or sole trader (contractor); and whether the worker works exclusively for the employer (employee) or if his/her work is non-exclusive/advertises business to the world at large (contractor).

No one factor is conclusive. It is necessary to examine the entire relationship of the parties. The Australian Taxation Office (ATO) has made available on its website an online decision tool (www.ato.gov.au/businesses/content.asp?doc=/content/00095062.htm) that is helpful in determining whether a worker is an employee or contractor.

Volunteers
Volunteers are neither employees nor contractors. They make a gift of their work without financial remuneration. They work in a charitable context with no intention to create legal relations with the organisation. If you are a volunteer, you are unlikely to have an enforceable employment contract with an organisation. However, an employer still has certain obligations towards you.

Copyright and employment

Copyright ownership
As an employee in the arts, you should be aware of your and your employers intellectual property rights. Generally, when an employee makes a creative work in the course and within the scope of the employment relationship, the employer is the copyright owner unless there is an agreement to the contrary. However, when the person creating the work is a contractor or a volunteer (not an employee), the contractor or volunteer generally retains copyright in the works created for the organisation. Thus, if you are a contractor or volunteer, and the employer wants to use the work they have requested you to create, they cannot do so unless you grant them a licence (written or oral). Alternatively, your employer might seek to acquire full ownership of the work and ask you to sign a written assignment of copyright. If you want to maintain ownership of copyright, do not sign any agreement without fully understanding the consequences. You should contact Arts Law or your solicitor for more information.

Moral rights
If you are an employee and you make a creative work in the course and within the scope of the employment relationship, you retain moral rights although your employer owns the copyright in your work. Moral rights recognise your ongoing connection with your creative work, and there are 3 types:

Right of attribution: you can make sure that you are named and acknowledged for your work. Right against false attribution: you can stop other people from claiming that they created your work. Right of integrity: you can stop your work being used in a way that harms your honour or reputation.

Workplace health and safety

Every employer has a duty to provide a safe working environment for employees, contractors and volunteers. Thus, under occupational health and safety (OH&S) legislation, there is a general duty of care on employers to ensure the health, safety and welfare of employees by: maintaining a safe workplace and facilities, ensuring the safe handling and use of equipment, and providing proper information, instruction, training and supervision. The employer must take all reasonably practicable measures to control risks against injuries that may occur in the workplace. For example, your employer must ensure that premises are structurally sound, that exits are wellidentified, and that the temperature and quality of the air do not endanger health. As an employee, you have a corresponding duty to take care of others and cooperate with your employer in the implementation of health and safety measures. If you have any health and safety concerns related to your workplace, you should alert your employer. Your employee has a duty to consult with employees on matters of health and safety and to respond to employee concerns. If you suffer an injury or illness at your workplace, you should notify your employer as soon as possible. If you need medical treatment and/or cannot work for a certain period of time because of the injury, you can make a claim for workers compensation. When you see your doctor to arrange treatment, you should get a WorkCover medical certificate to give to your employer.

Workers compensation
Most employers in NSW are required to maintain workers compensation insurance. Workers compensation provides compensation to workers who suffer a work-related injury or disease. Employees injured at the workplace may be entitled to weekly payments, lump sum for permanent impairment (including pain and suffering), payment of medical bills, rehabilitation assistance and provision of legal assistance. If an employer is uninsured, an injured worker can make a claim under the uninsured liability and indemnity scheme and receive payment from WorkCover NSW (www.workcover.nsw.gov.au). Workers compensation insurance may cover injuries suffered by independent contractors. However, workers compensation insurance does not cover volunteers. Thus, if you are a volunteer, you should inquire whether your organisation has a separate volunteer insurance policy. Before making a workers compensation claim, you must inform your employer that you have been injured and provide medical information. A workers compensation claim should be made within six months of the date of injury. Generally, you do not need to send a written claim to the insurer, as the employer must inform its insurer of the injury. However, you may need to submit a written claim if the insurer requests one, if weekly payments are needed for more than 12 weeks, or if medical expenses exceed $7,500. After the employer has notified the insurer of the injury, most employees will receive provisional liability payments within 7 days, and the insurer will investigate the facts surrounding the injury.

You should make all efforts to return to work as soon as possible. Your employer cannot dismiss you within the first 6 months of your injury. If you are terminated after 6 months but become fit for your old job within 2 years, you can apply to be reinstated. If you need additional information, you should contact WorkCover Assistance Services on 13 10 50.

Discrimination in the workplace

Under federal and state laws, it is illegal for an organisation to discriminate against an employee or contractor because of that persons race, colour, sex, sexual preference, age, physical or mental disability, marital status, carers/family responsibilities, pregnancy, political opinion, religion, national extraction or transgender status. In the context of employees, an employer may not discriminate in: hiring or promotion decisions; termination or other discipline; or terms and conditions of employment. Similar anti-discrimination provisions apply to contract workers. An organisation may not discriminate against a contractor in relation to: the terms and conditions on which the contract worker is allowed to work; deciding whether to allow the person to work or continue work; access to opportunities or benefits associated with the contract, and subjecting the person to some other detriment. Although volunteers are not explicitly covered by the Anti-Discrimination Act 1977 (NSW), it may be against the law in some circumstances to discriminate against volunteers who receive any kind of benefit (more than out of pocket expenses) in return for their voluntary work. Laws prohibiting sexual harassment apply to all three categories of workers: employees, contractors and volunteers. If you believe you have been discriminated against, you may make a complaint to any of the following:

NSW Anti-Discrimination Board, tel. (02) 9268 5555. The complaint must be within 12 months. Fair Work Ombudsman, tel. 13 13 94. The complaint must be within 60 days. Australian Human Rights Commission, tel. 1300 656 419.

Minimum conditions and other employer obligations

National Employment Standards
The Fair Work Act 2009 (Cth) sets out the National Employment Standards (NES), which include ten entitlements related to minimum working conditions. An employer and an employee cannot make an agreement with entitlements that are less than these minimum standards. Accordingly, all employers are obligated to provide their employees (not contractors or volunteers) with the following entitlements:

Maximum weekly hours of work: 38 hours plus reasonable overtime. Requests for flexible working arrangements: parents/carers of children under school age or children with disabilities under 18 may request a change in working arrangements. You must make your request in writing, and the employer has 21 days to respond. Parental leave and related entitlements: 12 months unpaid leave, with the right to request an additional 12 months. Annual leave: 4 weeks paid leave per year. Personal/carers leave and compassionate leave: 10 days paid personal/carers leave, two days unpaid carers leave as required, and two days compassionate leave (unpaid for casual workers). Community service leave: unpaid leave for voluntary emergency activities and leave for jury service, with up to 10 days paid leave for jury service. Long service leave (LSL): transitional entitlement for certain employees who had LSL entitlements before January 1, 2010, pending development of uniform national standards. Public holidays: paid days-off on public holidays, except where reasonably requested to work. Notice of termination and redundancy pay: up to 4 weeks notice of termination (5 weeks if the employee is over 45 and has at least 2 years of continuous service) and up to 16 weeks redundancy pay (i.e. payments made when a position is eliminated due to genuine operational needs), both based on length of service. Small businesses under 15 employees are not required to make redundancy payments. Provision of a Fair Work Information Statement: employers must provide this statement to all new employees.

National Employment Standards for casual employees

If you are characterised as a casual employee (generally engaged for short-term, irregular or seasonal work without the promise to provide work or be available for work on other occasions), only certain NES entitlements apply to you:

two days unpaid carers leave and two days unpaid compassionate leave per occasion; maximum weekly hours; community service leave (except paid jury service); day-off on a public holiday, unless reasonably requested to work by the employer; and provision of the Fair Work Information Statement.

In addition, casual employees who have been employed for at least 12 months by an employer on a regular and systematic basis and with an expectation of ongoing employment are entitled to make requests for flexible working arrangements and parental leave. In addition to the ten entitlements of the NES, there are several other obligations that employers are required by law to fulfil for all employees:

Minimum wage: the Federal Minimum Wage is $14.31 per hour ($543.78 per week), and will be replaced by the "national minimum wage" on 1 July 2010. However, the minimum wage may be higher in different industry sectors, which are controlled by awards or enterprise agreements (i.e. legal documents that set out the rights and obligations of employers and employees engaged in particular types of work). Award display: employers must display a copy of every award applying in the workplace in a place conspicuous to employees. Payslips: employers must give employees written particulars about their pay including: name and Australian Business Number (ABN) of the employer; name of employee; classification of the employee under any applicable award (including full-time, part-time and casual status); date when the payment was made; period of employment to which the payment relates; the amount of money paid before tax (gross amount); amount paid as overtime; amount deducted for tax; amount deducted for as employee contribution for superannuation; particulars of all other deductions; amount paid after tax (net amount). Records: employers must keep accurate time and wage, leave, superannuation contribution records.

Making a complaint
If you are being underpaid or if your employer is failing to provide the minimum NES conditions or any of its other obligations, you may file a complaint with the Fair Work Ombudsman, tel. 13 13 94.

Tax matters
Employees
Your employer has the following tax obligations:

Pay As You Go (PAYG): employers have a legal requirement to withhold a portion of employees salaries for income tax purposes and remit the withheld amount to the ATO. The amount withheld is determined by using the tax tables published by the ATO and information provided by the employee on a tax file number declaration (and withholding declaration if applicable). The amount of PAYG tax deducted from your salary should appear in your payslips. Fringe Benefits Tax (FBT): an employer must pay FBT tax must on any nonsalary benefits to employees or their associates (such as family members). Examples of fringe benefits include allowing an employee to use a work car for personal purposes or when an employer pays an employees private health insurance costs. It is the employers responsibility to pay this tax, and it should not be deducted from your salary.

Contractors
You should provide the individual or business who is engaging your services with your ABN number. If you do not provide your ABN number, the individual or business is required to withhold 46.5% of the payment due to you and remit it to the ATO (unless the total payment is $75 or less excluding Goods and Services Tax (GST)). In addition, you are normally required to charge GST and remit it to the ATO, and this should be factored in to the price of your services.

Superannuation
Employees' contributions
Superannuation is money saved for your retirement, and your employer may have an obligation to make a contribution to your account. Employees are eligible for compulsory superannuation contributions if they: are aged between 18 and 70; are paid $450 (before tax) or more in a calendar month; and work full-time, part-time or on a casual basis. If you are under 18, you are eligible for compulsory superannuation contributions if you earn $450 or more per month and work for more than 30 hours per week. Employers are required to make superannuation guarantee contributions on behalf of their eligible employees at least once each quarter. The minimum contribution is 9% of your earning base (generally ordinary time earnings). These contributions must be in addition to your salaries and wages.

Contractors
If you are a self-employed contractor, an employer is not required to make superannuation contributions. However, an employer may not disguise an employee as a contractor for the purposes of avoiding superannuation payments. To determine whether you are self-employed (i.e. a contractor) or an employee for superannuation purposes there are two key questions: 1. Under whose "control" are you working? Who has the right to control how, when, where and who is to perform the work? Do you have discretion to accept or reject work? 2. Are you "integrated" with the business of the employer? Do you provide labour or service as a truly independent contractor carrying on your own business (as a contract for services: not an employee) or individually as an integral part of another business organisation (as a contract of service: an employee)? Are you presented to the public as part of the business of the hiring organisation? For whose benefit is your work performed? Most employees have the right to choose the superannuation fund that will receive their employers contributions. If you are eligible to choose your fund and fail to do so, your employer must make payments to an employer nominated fund on your behalf. If you make additional contributions directly into you personal superannuation

fund, this does not count towards your employers obligations and they must still contribute a minimum of 9% of your earnings. If you think you are eligible for superannuation and your employer is not making the required payments, you can lodge an enquiry with the Australian Tax Office on 13 10 20. For more information see Arts Law's information sheet on Superannuation and contract for services.

Termination
Employer-employee relationships do not always work out as smoothly as planned, and there are certain things that you should be aware of if you lose you job. These provisions apply to employees only, not contractors.

Notice requirements
An employer wishing to terminate an employment relationship must provide the employee with advanced written notice (1-4 weeks, depending on length of employment) or payment in lieu of notice (the full amount the employee would have been paid during the applicable notice period. Notice (or payment) is not required when the employee engaged in serious and wilful misconduct (eg. theft, fraud, violence) entitling the employer to instantly or summarily dismiss the employee. If you resign from your position, you are not required to give your employer advanced notice under federal workplace laws. However, you may be required to provide notice if provided for by your award, enterprise agreement or employment contract.

Termination Pay
You should receive the following entitlements in their final pay:

outstanding wages owed to the employee; accrued annual leave entitlements; accrued or pro-rata long-service leave (if applicable); and redundancy pay entitlements (if applicable).

If you have not been paid out for all of your entitlements in your final pay, you should file a complaint with the Fair Work Ombudsman, tel. 13 13 94.

Unfair dismissal
Certain eligible employees may be able to file an unfair dismissal claim against their employers if the circumstances surrounding their termination were harsh, unjust or unreasonable.

Requirements for unfair dismissal: you can file an unfair dismissal claim if you have been: (1) dismissed; (2) the dismissal was harsh, unjust, or unreasonable; and (3) the dismissal was not a case of genuine redundancy.

Employees eligible to file an unfair dismissal claim: to be eligible to make an unfair dismissal claim, you must: (1) have worked for the business for a minimum of 6 months; and (2) earn less than $108,300 per year (unless covered by an award or enterprise agreement). Consequence of unfair dismissal: if Fair Work Australia determines the dismissal was unfair, the employer can be ordered to reinstate you or compensate you for up to 26 weeks pay (up to a maximum of $54,150). Filing an unfair dismissal claim: you must lodge an application with Fair Work Australia (FWA; www.fwa.gov.au) within 14 days of your dismissal. For more information, you should call FWA on 1300 799 675 or visit the Fair Work Australia website.

Special considerations for employees of small businesses

If you worked for a business that employed fewer than 15 full-time employees, the Small Business Fair Dismissal Code applies, and it is more difficult though not impossible to be successful in filing an unfair dismissal claim.

Eligibility: to be eligible to make an unfair dismissal claim, you must have: (1) worked for the business for at least 12 months; (2) be covered by a modern award/enterprise agreement; and (3) earn less than $108,300 per year. Summary dismissal: an employee may be dismissed without notice or warning when the employer believes on reasonable grounds that the employee's conduct is sufficiently serious to justify immediate dismissal (eg. theft, fraud, violence, breach of occupational health and safety procedures). Other dismissals: an employer may avoid an unfair dismissal claim if, prior to dismissing an employee, the employer gives the employee a reason why he/she is at risk of being dismissed (based on the employees conduct or capacity to perform the job). If there is no improvement, the employee should be warned (preferably in writing), and the employee should be given the opportunity to respond to the warnings and a reasonable chance to rectify the problem (which may include additional training and ensuring the employee knows the job expectations).

Unlawful termination
It is illegal for an employer to dismiss an employee based on any of the following reasons:

a person's race, colour, sex, sexual preference, age, physical or mental disability, marital status, family or carer's responsibilities, pregnancy, religion, political opinion, national extraction or social origin (some rare exceptions apply, such as where it's based on the inherent requirements of the job); temporary absence from work because of illness or injury; trade union membership (or lack thereof); seeking office as, or acting as, a representative of employees; being absent from work during maternity leave or other parental leave; temporary absence from work to engage in a voluntary emergency management activity; filing a complaint, or participating in proceedings against an employer.

If you think you have been dismissed for any of these reasons, you can apply to FWA. You must lodge your application within 60 days after the dismissal. For more information, you should contact FWA, tel. 1300 799 675. In addition, you may seek help from the Fair Work Ombudsman, tel. 13 13 94, which may seek penalties against your employer for unlawful termination.

Disclaimer
The information in this information sheet is general. It does not constitute, and should be not relied on as, legal advice. The Arts Law Centre of Australia (Arts Law) recommends seeking advice from a qualified lawyer on the legal issues affecting you before acting on any legal matter. While Arts Law tries to ensure that the content of this information sheet is accurate, adequate or complete, it does not represent or warrant its accuracy, adequacy or completeness. Arts Law is not responsible for any loss suffered as a result of or in relation to the use of this information sheet. To the extent permitted by law, Arts Law excludes any liability, including any liability for negligence, for any loss, including indirect or consequential damages arising from or in relation to the use of this information sheet.
Employment Law - A great many common law rulings, statutes, administrative rules and legislation make up the practice and interpretation of employment law. Its governance falls under the umbrella of both federal and state statutes, as well as administrative regulation and judicial precedent. When workers file claims for employment discrimination, unemployment compensation and workers compensation, these claims fall under employment law. Likewise, overseeing workplace safety and standards, fair wages, retirement and pensions, and much more, are part of this wide-ranging legal area. Employment law deals with both the employer and the employees actions, rights and responsibilities, as well as their relationship with one another. A well-known, prevalent administrative regulatory body for employment law is the Department of Labor, which exists on both the federal and the state level. Employment Law General Definition:

Employment Law Attorneys

Employment law, sometimes referred to as Labor law, encompasses the massive compilation of statutory laws, administrative rulings, and legal precedents which cover all facets of the employer/employee relationship.

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Employees privacy concerns at workplace

by Khushi Mehta last modified Nov 12, 2010 11:03 AM

Human kind, where on one hand is always curious to learn more and more about others life, be it personal or professional, on the other hand does not like others intruding their own privacy. Here, we will be mainly emphasizing on professional privacy concerns, that is, employees privacy at work. In India Employee privacy concept is not much developed. Compared to countries like USA, where they have laws like Electronic Communications Privacy Act to check intrusion in employees privacy, India still lacks specific legislation to safeguard privacy of the employees. The only remedy available is under Law of Torts where such intrusion into someones privacy is construed to be a civil wrong. This has rendered Indian employees more vulnerable to privacy infringement threats. Nonetheless, the Supreme Court has clarified that the right to privacy is implicit in the fundamental Right to Life as provided under Article 21 of the Constitution. 1 US courts have upheld certain employee privacy violations which by and large have universal resemblance. These are intrusion, publication of private matters, disclosure of medical records, appropriation of an employees name or likeliness for commercial purposes, or extracting information pertaining to his/her personal life, specific choices, family issues, background, etc. 2 Employees may either directly be compelled to release such information or it is obtained from other sources like by persuading their colleagues, etc. Technological developments also are aid to employers as they have devises like surveillance cameras to keep an eye on their employees. Also, softwares are developed which help them monitor employees personal mails, their locations, etc. At times the companies even do this without the knowledge of employee. It has been observed for long that employees privacy is mainly intruded as employers show concern regarding matters like data security, information outsourcing, enhancing employees productivity, performance evaluation, etc. 3 But indecisiveness always prevails as regards the degree of such surveillance on employees. Also, as the nature of contractual relationship affords wider powers to the employers whereby they can even extract unnecessary information from the employees which can be misused, is being questioned. Whatever may be the excuse, but the end result comes out as invasion of employees privacy. Its not just those in employment face privacy threat. Cases of privacy invasion are noticed at the time of selection and recruitment too. In the case of Neera

Mathur v. LIC 4, wherein the Life Insurance Corporation required the women applicants to furnish personal details like their menstrual cycles, conceptions, pregnancies, etc. at the time of appointment was held to be a breach of privacy. Agreed, privacy cannot be construed to mean that one is entitled to withhold all possible information regarding self from others, but rather to understand and decide on the legitimate extent, need and means of disclosure. It is essential for both the employers and employees to grasp the real essence of the very concept. There is an urgent need to formulate a law for safeguarding the privacy of employees at workplace but till then, morality rather than ones conscience is the only tool which can play the part.

Working condition The liberalization policies of the Indian government, begun in 1991, assisted in opening up the economy to domestic and international competition. Autarkic policies of the past decades had limited foreign investment and prioritized the growth of domestic industry through import substitution and public ownership of much of the means of production. Emphasis on self-reliance had eventually led to an economic crisis, which did not help to improve working conditions for the majority of the Indian labor force. During this period, many skilled and unskilled workers among the population had opted for better employment opportunities in other countries. Despite the benefits of economic liberalization, it has not quickly solved the problem of unemployment and other social and economic ills. Short-and longterm job losses as a result of competition, for example, have been common, especially among the unprofitable firms. One of the main areas of employment for many of the poor has been the cotton textile industry with its traditional concentration of mills in the cities of Bombay, Ahmedabad, and Coimbatore. Along with mills that use the most advanced technology to process raw cotton and form cotton fiber, there also have existed a large number of small-scale workshops and households that use traditional handlooms (the type used by Mahatma Ghandi) and rely on manual labor for the processing of cotton. India's market liberalization led to the foreclosure of much of the traditional handloom cotton industry and resulted in nearly 2.3 million workers losing their jobs. Many of these workers have remained unemployed. Managers of

the modern mills attribute this to the older age of hand-loom workers and their inflexibility or inability to adjust to the mechanized cotton mills. As opposed to neighboring China, trade unions in India play a very prominent role in the business community. Every industry has a trade union that advocates the rights and employment opportunities of its members. Trade unions strive to obtain the best deal for their members in terms of wages, working conditions, acceptable remuneration, and welfare packages. As much as 92 percent of the labor force in India is unionized. Some of the laborers of the cotton industry have gained employment in the textile industry, which with its labor force of 39 million is among the largest unionized industries. Women constitute an important segment of the Indian labor force whose working conditions have not made significant progress. Despite some noticeable advances for a small percentage of women, women as a whole have been relegated largely to agricultural and menial pursuits that pay the lowest wages. In some ways, as the overall economy has grown, the situation of working women in India has even deteriorated. In 1911, for example, threequarters of the working women of India were agricultural workers; in 1991, the proportion was over 80 percent. Nearly 70 percent of the population as a whole derives its livelihood from land resources, and women contribute an estimated 55 to 66 percent of the total farm labor force.

A company can ensure sustained profitability and productivity from its investments only by taking care of its human resources. The most important aspect of it is the work environment provided to the employees including hours of work, leave, safety, rest periods, holidays and other conditions of service of the employees. The working conditions of an organization shall be such that workers are able to contribute their best efforts and bring about quality output. They

should feel safe and comfortable while working. Work environment should be clean, healthy, spacious and hygienic. It should be free from unnecessary noise and disturbances. Satisfactory physical conditions of work such as ventilation, temperature balance, lighting and surroundings,etc. will help to remove workers irritation or stress at work. There should be proper performance appraisal of employees at regular intervals. Those who perform well should be rewarded. Various incentives and benefits should be given to the employees. A system of wage incentive will assure adequate incomes to employees and convince them that the management is sincerely interested in a better living standard for them and not in greater profits for itself alone. In India, the Factories Act,1948 is the umbrella legislation enacted to regulate the working conditions in factories; to ensure provision of the basic minimum requirements for safety, health and welfare of the factories workers as well as to regulate the working hours, leave, holidays, employment of children, women, etc.
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Ethics of staff retrenchment

Monday, 07 February 2011 22:26

These days we hear of many organisations going through restructuring processes to ensure they remain afloat in the depressed business

environment obtaining in the country. While its all smiles in the retail sector particularly supermarkets as they reap from the dollarised economy, most businesses are finding the going really tough and have difficulty in recovering from the devastating effects of the Great Recession we experienced in the last decade. Company restructuring thus has become a favourable option in order to cut down on costs and improve efficiency. Corporate restructuring is normally accomplished through downsizing, reengineering, retrenchments, mergers and acquisitions. Restructuring is done to make the firm more competitive and efficient in the market place. Corporate restructuring often includes mass lay-offs as is the case with the situation obtaining at the Reserve Bank of Zimbabwe where 1 455 employees have just been sent home. It also involves selling off assets to recapitalise the firm, and outsourcing some services. The Reserve Bank of Zimbabwe is reported to have carried out the retrenchments in order to concentrate on its core business as the monetary authority. This is welcome given the fact that it is now two years since the central bank was weaned from its quasi-fiscal activities meaning to say the excess workers were just idlers at the central bank who had become a mere drain to the banks meagre resources. The lay-offs also give the central bank an opportunity to exorcise itself from the ghost of employing father, mother, son and daughter all at the same time. We also have read in the newspapers that CFX Bank and Interfin Banking Corporation have merged, and that there are other firms that are lining up to downsize and retrench staff as a cost-cutting measure and in order to survive the subdued business environment in the country. The responsibility for managing change in an organisation lies with management and executives of the organisation. The manager has a responsibility to facilitate and enable change and all that is implied in the change process. Change such as new structures and policies, mergers, acquisitions, retrenchments, relocations, etc, all create new systems and environments which need to be explained to people as early as possible so that peoples involvement in validating and redefining the changes themselves can be obtained. Retrenchment is not without its own problems given the fact that it involves the termination of employment of some individuals, hence a likely change in the living standards of those retrenched. And it is because of these unavoidable changes that retrenchment laws try as much as possible to ensure that when retrenchment is decided upon by a company, both parties are as much as is possible left in a position that guarantees their continued existence. According to the utilitarian view of ethics, corporate restructuring decisions should be based on their consequences to employees more than they should be focused on the survival of the organisation. From the organisations point of view restructuring and layoffs bring efficiency to the organisations operations. What is right then for the firm therefore may be wrong for the employee and vice versa, so a balance should be struck between the two parties. Retrenchments, downsizing , mergers and acquisitions as elements of change

management in the organisation should involve careful planning and sensitive implementation, and above all consultation with, and involvement of, the people to be affected by the change. Companies should communicate their change processes for buy-in by those to be affected by the change. Forced change on people normally results in problems. Change must be realistic, achievable and measurable. Before starting organisational change, company executives should ask themselves the following questions: l What do we want to achieve with this change, why, and how will we know that the change has been achieved? l Who is affected by this change, and how will they react to it? l Have we considered the ethics of the change process? l How much of this change can we achieve ourselves, and what parts of the change would we need assistance from outside consultants? Today as companies engage in restructuring for any of the reasons given above, institutions should take advantage of these change processes to embed ethics management processes in their new structures. Companies should move away from the traditional change management processes that merely give lip service to business ethics. Understanding the human side of change management by aligning the companys culture, values, people and behaviour will guarantee the success of the envisaged change. When new structures are put in place, management should know that listing of new values does not itself transform organisational cultures or create ethical cultures. Organisations should instead adopt deliberate processes that ensure that the newly envisaged ethical culture is implemented, practised, reinforced, trained, and evaluated through a formal business ethics management programme. One critical point for organisations to note is that the ethical conduct exhibited by organisations during the change processes, be they lay-offs, mergers and acquisitions, is significantly correlated to employee performance after the exercise. Managers need to know that the way they handle the departing staff will have an impact on those remaining. Exhibiting caring and supportive practices during the retrenchments increases employee trust and loyalty to the organisation and reduces employee misconduct. Companies should exhibit duty of care and show respect to departing employees. Sending employees back into society with broken self-esteem is bad for society and the business. How an organisation handles its restructuring or downsizing exercise is a supreme test of its commitment to ethical values, says Lorraine Spector, the executive director of the Jewish Association of Business Ethics in the UK. l Bradwell Mhonderwa is the Managing Consultant of Business Ethics Centre, a Corporate Governance and Business Ethics Management firm. Phone 04293 2948, 0712 420 090, 0912 913 875, or e-mail ethicszim@gmail.com

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