From:
Cassie Botha
To:
s47F
Cc:
Vanessa MacBean; Amy Fox
Bcc:
LEGAL Buyout and Band 1 Review 2020 20130021 Emails
Subject:
FW: Update on the ABC Review into Buyouts and Band 1 Classifications – August 2021 [ABC-PAL.FID37968]
Date:
Monday, 30 August 2021 3:00:21 PM
Attachments:
image001.jpg
FAQs-ABC-review-into-buyouts-and-Band-1-classifications-updated-August-2021.pdf
Hi s47F
Hope you’re off to a good start to the week.
We’re just finalising the attachments that will accompany our response to the FWO request for
information and I will update you again today on when you can expect to receive the documents.
In the meantime, please find below a copy of an employee communication that was circulated
last Thursday in relation to the Band 1 and Buyouts Review. The email included an updated
FAQ document (
attached) to the version that was shared with the FWO in January 2021. A copy
of the communication has been shared with the CPSU and MEAA.
If you have any questions about the information in the email, please let us know.
Kind regards,
Cassie
ABC
Cassie Botha
Employment Counsel
People & Culture
P: 02 8333 4354
M: 0409 833 564
We acknowledge Aboriginal and Torres Strait Islander peoples as the First Australians
and Traditional Custodians of the lands where we live, learn and work.
NOTICE: This email and any attachments are confidential, may be legally privileged and may include copyright material. The
information in this email is intended for the use of the individual or entity named above, only. Please do not forward or redistribute
this email without authorisation. If you are not the intended recipient, you must not read, disseminate, copy or otherwise use or take
any action in reliance on any information in this email. Please advise a member of the ABC Employment Counsel team immediately
if you have incorrectly received this email.
From: People & Culture <xxxxxxxxxxxxxxxx@xxx.xxx.xx>
Sent: Thursday, 26 August 2021 1:57 PM
To: People & Culture <xxxxxxxxxxxxxxxx@xxx.xxx.xx>
Subject: Update on the ABC Review into Buyouts and Band 1 Classifications – August 2021
This message has been sent to all current and former employees who are included in the Buyout and Band 1
review.
Dear all,
We wrote to you last month about the progress of the ABC’s review into Band 1
classifications and buyout arrangements.
I can now confirm that our review has identified that some employees have been
underpaid. Other employees are on buyouts that sufficiently cover or exceed their
entitlements, and there has been no underpayment. We are not yet able to
confirm the exact underpayment amounts or the individuals impacted. We will
continue to work through these details over the coming weeks.
We deeply regret that some employees have been underpaid and are committed to
those employees receiving backpay as soon as possible.
We are currently finalising the review and anticipate being able to notify employees of
the specific outcomes of the review from the end of September 2021. You will receive
a letter confirming whether you have been underpaid and are owed backpay, or whether
you have been sufficiently paid.
Once you have received your notification letter, there will be an opportunity for you to
provide feedback and discuss your particular circumstances before any individual
outcomes are finalised. Your notification letter will set out how this process will work.
We have notified the Fair Work Ombudsman of this development. We have been
meeting with the unions regularly throughout this review and will be providing an update
to the unions again shortly.
Questions
Please find attached updated Frequently Asked Questions. If you have any additional
questions, please contact the People & Culture Helpdesk.
Thank you for your continued patience and we will update you again soon.
Regards, Monica
Monica Vagg
a/Chief People Officer
People & Culture
We acknowledge Aboriginal and Torres Strait Islander peoples as the First Australians and
Traditional Custodians of the lands where we live, learn and work.
BUYOUT AND BAND 1 REVIEW
FREQUENTLY ASKED QUESTIONS
Last updated:
August 2021
GENERAL
1. What is this review about?
The ABC takes its obligation to ensure all employees are paid correctly very
seriously. The Flat Rate Casual Remediation in 2019 highlighted the need to
regularly review the wages and other entitlements of ABC employees to ensure
that this obligation is being met.
That is why the ABC is reviewing the wage records of employees who are or were
on an annual buyout, a buyout for short term distant assignments and special
events or a salary package (
Buyout Arrangements), and employees engaged at a
Band 1 classification between 1 July 2014 to 20 June 2021 (the review period).
The purpose of the review is to ensure that those employees have been paid the
correct amounts under the current and former ABC Enterprise Agreements.
2. How long will the ABC’s review take?
The review commenced in January 2021 and is still underway.
We are reviewing the payroll records of all potentially affected employees and
this requires time to ensure we are as thorough as possible. We are also working
closely with PricewaterhouseCoopers (PwC) to develop a robust calculation
model that will accurately determine employee entitlements under the current
and former ABC Enterprise Agreements.
All current and former employees who are included in the review are receiving
regular updates on the review’s progress
3. How many Band 1 and/or buyout employees are being reviewed?
We are reviewing buyout arrangements for approximately 1800 current and
former employees, and approximately 250 current and former employees who are
or were classified at Band 1, between 1 July 2014 and 20 June 2021.
Page 1 of 6
People & Culture – Buyout and Band 1 review – Frequently Asked Questions
4. What do I have to do?
You do not have to do anything at this stage. We will keep you informed as the
review progresses.
5. Will I be included in the ABC’s review if I am no longer an ABC employee?
Yes. Everyone who has been in a Band 1 role or engaged on a buyout arrangement
at any point during the review period (from 1 July 2014 until 20 June 2021) is
included in the ABC’s review. This includes people who are no longer employed by
the ABC.
6. Do I need to be part of the union or contact the union to be included in the ABC’s
review?
No, we are reviewing the entitlements of all employees who have been on a
buyout or in a Band 1 role during the review period. However, if you wish to do so
you can contact the MEAA or CPSU at any time. The ABC will continue to meet and
correspond with both the MEAA and the CPSU about the review.
7. Who will be conducting the review?
The review will be conducted on an organisation-wide basis and will include staff
from People & Culture, Payroll Services and Finance as well as managers of
employees who are being reviewed. We have also engaged Price Waterhouse
Coopers (PwC) to assist with the review.
8. Why has the ABC engaged PwC?
Given the size and complexity of the review, the ABC has engaged PwC to assist
based on their experience and capabilities in undertaking this type of work.
9. Has the Fair Work Ombudsman been notified of the ABC’s review?
Yes. The ABC provides regular updates to the Fair Work Ombudsman on the
review. We have also advised the Fair Work Ombudsman that our review to date
has found that some of our employees on a buyout arrangement or Band 1
classification have inadvertently been underpaid.
10. When will the review be finalised? When will I receive back pay if I have been
underpaid?
We anticipate finalising the review and providing individual employees with an
outcome by letter around the end of September 2021.
At that time, you will have an opportunity to provide us with any additional
relevant information and to ask questions about your individual review outcome.
Page 2 of 6
People & Culture – Buyout and Band 1 review – Frequently Asked Questions
11. Will back payments include interest? What about superannuation and tax?
Yes. Interest will be paid if there is a back pay amount owed to you. Any
superannuation payable on a back payment will be paid into your nominated
superannuation fund/s. The ABC would also normally withhold tax on a back
payment in accordance with ATO requirements.
More details on superannuation and tax components will be provided to you if
the outcome of the review finds that you have been underpaid.
BAND 1 CLASSIFICATION REVIEW
1. What is a Band 1 classification?
All employees covered by the ABC Enterprise Agreement must be assigned to a
role that is correctly classified and graded according to the Work Level Standards
(WLS). The WLS provide a framework for valuing work. They indicate the
standards for each of the nine salary bands and provide guidance on the tasks,
activities and capabilities required for different functions and roles.
Under the WLS, roles are classified as either:
− Content Maker
− Administrative/Professional
− Technologist
Roles which are classified as Content Maker or Administrative/Professional are
graded from Band 1 to Band 9. Technologists are not permitted to be engaged at
Band 1 and the ABC has already completed a review of Band 1 Technologists.
2. Why is the ABC reviewing Band 1 classifications for employees engaged in Content
Maker or Administrative/Professional roles?
Band 1 is generally the most appropriate classification for an entry level
employee with no prior relevant experience. The duties they are assigned are
basic and they are closely supervised while they perform the role. Once a Band 1
employee has acquired sufficient experience and new skills, it will often be
appropriate for them to be assigned to a higher band classification.
As the WLS do not set a specific time frame when progression to a higher band
level must occur, this can result in a Band 1 employee being underpaid if their
classification is not reviewed at the correct time.
Page 3 of 6
People & Culture – Buyout and Band 1 review – Frequently Asked Questions
3. How do I know if I was on Band 1?
You should check your ABC employment contract or engagement letter for
specific details of the role and WLS classification you were or are currently
engaged on. If you have been engaged to perform more than one role with the
ABC, you will need to check all previous and current engagement letters.
Alternatively, you can contact People & Culture and ask them to check your
employment history with the ABC to see if you have been engaged on a Band 1
classification during the review period (from 1 July 2014 to 20 June 2021).
4. I was previously in a Band 1 role - will I be included in the ABC’s review?
Yes. Everyone who has been in a Band 1 role at any point during the review period
(from 1 July 2014 to 20 June 2021) is included in the ABC’s review, even if you are
no longer an employee or no longer in a Band 1 role.
5. How is the ABC going to determine whether Band 1 was a correct classification?
The review will involve confirming the period/s you were engaged at Band 1 and
then confirming whether a Band 1 classification was appropriate for the role you
were performing during that time. We will obtain all available information on our
systems and payroll files and speak with relevant managers at the ABC.
6. I was in a Band 1 role – have I been underpaid?
Not necessarily. Our review will include checking whether a Band 1 classification
was appropriate for the role you were performing during each engagement
period. There are roles at the ABC in which Band 1 is an appropriate classification;
for example, entry level positions which require no prior experience and the
duties are basic and closely supervised.
BUYOUT REVIEW
1. What is a buyout?
The ABC engages some of its employees on annualised salaries, known as
‘buyouts’. A buyout arrangement is an annual agreement in which an employee
agrees to be paid a fixed loading (a buyout) in lieu of other entitlements for hours
of work, rosters and changes to rosters, special rates, shift penalties, overtime
and/or allowances. A buyout arrangement includes employees who are on an
annual buyout, a buyout for short term distant assignments and special events or
a salary package.
Page 4 of 6
People & Culture – Buyout and Band 1 review – Frequently Asked Questions
An employee on a buyout arrangement must receive at least four free days per
fortnight, and they must be better off on the buyout arrangement than they
would be if they were paid penalties, overtime, allowances, etc, under the ABC
Enterprise Agreement.
2. Why is the ABC reviewing buyouts?
The appropriate amount of fixed loading (the buyout) is determined through an
estimate of the payments an employee would be entitled to, based on the pattern
of hours it is expected that they will work for the 12 months ahead. Because a
buyout amount is based on estimated hours, if an employee’s pattern of hours
changes unexpectedly throughout the period of the buyout, their buyout
arrangement needs to be reviewed to ensure that the employee is still better off
overall for the period.
The ABC is reviewing all buyout arrangements since 1 July 2014 to ensure that
this ‘better off overall’ requirement has been met for each employee paid a
buyout.
3. Why does the ABC use buyouts?
Buyouts are permitted under the ABC Enterprise Agreement and in specific
circumstances can provide benefits to both the ABC and the relevant employee. A
buyout arrangement can provide the ABC with rostering and resourcing flexibility
in relation to an employee who experiences large fluctuations in the hours they
work throughout the year. The same employee benefits by receiving a consistent
salary throughout the year, regardless of the hours they work.
4. Will I be included in the ABC’s review if I am no longer on a buyout and/or no longer
an employee?
Yes. Everyone who has been on a buyout arrangement at any point during the
review period (from 1 July 2014 to 20 June 2021) is included in the ABC’s review,
even if you are no longer an employee or no longer on a buyout arrangement.
5. Is the ABC going to stop the use of buyouts?
The ABC does not intend to completely stop the use of buyouts. There are certain
situations where buyout arrangements may be suitable, where they are properly
calculated and checked, and have been approved by the appropriate delegate.
6. I am currently on a buyout - am I being underpaid?
Not necessarily. As part of the ABC’s review, we will identify which employees
were better off overall on a buyout arrangement (in which case there is no
underpayment), and those where this requirement has not been met.
Page 5 of 6
People & Culture – Buyout and Band 1 review – Frequently Asked Questions
We will let you know the findings of our review in the coming months as it relates
to you and your buyout arrangement, and you will have an opportunity to provide
any relevant additional information.
7. I am currently on a buyout - will my buyout be terminated?
Buyouts are individual arrangements and any discussions about ceasing or
adjusting buyouts will occur on an individual basis. If the review has found that
you have not been better off overall under a buyout arrangement, the ABC may
have a discussion with you about ceasing your buyout, to ensure that going
forward you receive adequate pay for your entitlements. If there has been no
underpayment, the ABC may still talk to you about ceasing or adjusting the
amount of your buyout. This would be done in line with the ABC Enterprise
Agreement.
The ABC Enterprise Agreement requires the ABC to monitor buyout arrangements
so that if an employee’s pattern of ordinary hours of work changes during the
period of the agreement, the loading is found to be wrongly calculated or
extraordinary events have intervened, the buyout arrangement may be reviewed
and the rate changed by agreement to reflect the new circumstances, or the
buyout arrangement will be terminated.
If the ABC proposes to change your buyout amount or terminate your buyout, you
will be contacted individually in relation to this, and be given adequate notice to
allow you the time to ask questions and raise any concerns.
FURTHER INFORMATON
If you have any other questions about the review, please email the People & Culture
Helpdesk (xxxxxxxxxxxxxxxx@xxx.xxx.xx).
Page 6 of 6
