This is an HTML version of an attachment to the Freedom of Information request 'Fair Work Ombudsman buyout review'.


From:
Cassie Botha
To:
s47F
Cc:
Monica Vagg; Vanessa MacBean
Bcc:
LEGAL   Buyout review 2020   20130021 Emails
Subject:
RE: Query regarding recent ABC correspondence [SEC=OFFICIAL] [ABC-PAL.FID37968]
Date:
Monday, 11 January 2021 1:18:17 PM
Attachments:
image001.png
image002.png
ABC review into Buyouts and Band 1 classifications - employee email sent - 6 January 2021.pdf
FAQs - ABC review into buyouts and Band 1 classifications.pdf
Dear s47F
 
Thanks for your email and confirming that we will wait to hear from your office about
organising a meeting in the next few weeks.
 
In the meantime, please find copies of an employee email and Frequently Asked
Questions document that we circulated last week.  The relevant unions have also been
provided with copies of these communications.
 
I trust that you will find the FAQs helpful but please let me know if you have any other
questions you’d like us to prepare responses for ahead of our upcoming meeting.
 
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: s47F
 
Sent: Friday, 8 January 2021 1:11 PM
To: Cassie Botha <xxxxx.xxxxxx@xxx.xxx.xx>
Cc: Monica Vagg <xxxx.xxxxxx@xxx.xxx.xx>; Vanessa MacBean
<xxxxxxx.xxxxxxx@xxx.xxx.xx>
Subject: RE: Query regarding recent ABC correspondence [ABC-PAL.FID37968] [SEC=OFFICIAL]
 
OFFICIAL
 
Hi Cassie
 
Thank you for your email and time on the phone earlier today.








 
ABC REVIEW INTO BUYOUTS AND BAND 1 CLASSIFICATIONS 
Frequently Asked Questions 
January 2021 
 
GENERAL  
1.  What is this review about? 
The ABC takes very seriously its obligations to ensure all employees are paid 
correctly. The recent Flat Rate Casual Remediation has highlighted the need to 
regularly review the wages and other entitlements of ABC employees to ensure 
that these obligations are being met. That is why the ABC is reviewing the wage 
records of employees who have been paid a buyout and employees engaged at a 
Band 1 classification to ensure that they have and are being paid the correct 
amounts under the current and former ABC Enterprise Agreements. 
2.  How long will the ABC’s review take? 
It’s expected the review will take at least several months to complete. We are 
reviewing payroll records for all potentially affected employees and this requires 
time to ensure we are as thorough as possible. We are notifying current and 
former employees who are included in the review and will keep you informed.   
3.  How many Band 1 and/or buyout employees are being reviewed? 
Currently we are reviewing buyouts for approximately 1700 current and former 
employees, and approximately 250 current and former employees who are or 
were classified at Band 1, and who were engaged by the ABC since 1 July 2014. 
4.  What do I have to do? 
You do not have to do anything at this stage. You should have received an email 
notifying you of the review and we are committed to keeping you informed as the 
review progresses. 
5.  Will I be included in the ABC’s review if I am no longer an ABC employee? 
Everyone employed by the ABC at Band 1 or who was paid a Buyout from 1 July 
2014  until the review is completed will be included in the review. 
6.  Do I need to be part of the union or contact the union to be included in the 
ABC’s review? 
 

No. The ABC is including all employees in the review who were engaged as a Band 
1 employee or paid a buyout from 1 July 2014 until the review is completed. 
However, you can contact the MEAA or CPSU at any time. The ABC will be meeting 
and corresponding with both the MEAA and the CPSU about this issue.   
7.  Who will be conducting the review? 
The review will be conducted on an organisation-wide basis and will include 
people from People & Culture, Finance and Payroll Services as well as managers 
of employees who are being reviewed. We have also engaged Price Waterhouse 
Coopers (PwC) to assist. 
 
8.  Why has the ABC engaged PwC? 
 
Given the size and complexity of the review, the ABC has engaged PwC to assist 
with the review 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 Fair Work Ombudsman has been notified that we are conducting a review 
of Band 1 employees and employees on buyouts.   
 
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 classifed 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 don’t 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. 
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 are currently engaged on. If 
you have been enaged 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 if you have ever been engaged on a 
Band 1 classification. 
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 in time during the review 
period (from 1 July 2014 until the review is completed) 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 conduct the review? 
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. 
 
BUYOUT REVIEW 
1.  What is a buyout? 
The ABC engages some of its employees on annualised salaries, known as 
‘buyouts’. A buyout 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. An employee who is paid a buyout must receive at least four free 
days per fortnight, and they must be better off on the buyout 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 approriate amount of fixed loading (buyout) is determined through an 
estimate of the payments an employee would be entitled to based on the pattern 
of hours it’s expected that they will work for the 12 months ahead.  Because a 
buyout is based on estimated hours, if an employee’s pattern of hours changes 
unexpectedly throughout the year, their buyout needs to be reviewed to ensure 
that the employee is still better off overall.  
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 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 at any point in time during the review 
period (from 1 July 2014 until the review is completed) is included in the ABC’s 
review, even if you are no longer an employee or no longer on a buyout.  
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 are 
situations where buyouts are suitable, for example for employees who have 
fluctuations in hours during the year so they receive a consistent salary from 
fortnight to fortnight. 
 
FURTHER INFORMATON  
 
If you have any other questions about the review, please email the People & Culture 
Helpdesk (xxxxxxxxxxxxxxxx@xxx.xxx.xx). 
 
 

From:
People & Culture
To:
People & Culture
Subject:
ABC review into Buyouts and Band 1 classifications
Date:
Wednesday, 6 January 2021 12:18:46 PM
Attachments:
FAQs - ABC review into buyouts and Band 1 classifications.pdf
Dear colleagues,
 
The ABC takes very seriously its obligations to ensure all employees are paid
correctly. We have commenced a review of employees who have been paid a
buyout or were engaged on a Band 1 classification to ensure that they have been
paid the correct amounts under the current and former ABC
Enterprise Agreements. 
 
You are receiving this email because you are or were engaged as a Band 1
employee or were on a buyout between 1 July 2014 and now. 
 
Buyout review 
 
We are undertaking a review of employees who were paid a buyout to
confirm whether they were better off on the buyout than if they were
paid penalties, overtime and allowances under the enterprise agreement during
the review period. This review will include approximately 1700 employees who
were on a buyout during the review period. 
 
Band 1 classification review 
 
We are also undertaking a review of employees engaged at Band 1 to confirm
whether a Band 1 classification was appropriate for the work that
was performed. This review will include approximately 250 employees
engaged at Band 1 during the review period. 
 
Timing 
 
We are working hard to complete the review. However, it is expected the review
will take several months. 
 
Given the size and complexity of the review, the ABC has also engaged
Pricewaterhouse Coopers (PwC) to assist with the review. 
 
We are committed to keeping you informed as the review progresses. 
 
Questions 
 
Please find attached Frequently Asked Questions, which address some of the
questions you may have. If you have any additional questions, please
email xxxxxxxxxxxxxxxx@xxx.xxx.xx. 
 
If you know someone who worked at the ABC as a Band 1 employee or was on a
buyout in the review period, and has not received this email, please ask them to
contact us at xxxxxxxxxxxxxxxx@xxx.xxx.xx. 
 
Kind regards,
 


Monica Vagg 
 
 
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.