November 2010

Grievance and 
dispute resolution
A guide for ORIC corporations covered by the federal industrial relations system 

This document has been prepared solely for the use of not-for-profit corporations registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act). Its application in any particular case will depend upon the facts of that case. In every case, due care will need to be taken by a corporation registered under the CATSI Act in assessing the suitability of its application. The Australian Government Solicitor and ORIC cannot take any responsibility for this assessment.
This document may only be reproduced or distributed for use in the drafting of a contract for a not-for-profit corporation registered under the CATSI Act. All other rights are reserved.

General principles
There are a number of general principles that are useful in dispute resolution in employment matters.
•	It is important to deal with disputes and grievances in the workplace promptly. Ignoring problems does not make them go away. Generally speaking, it makes matters worse.
•	It is important to deal with things at the local level. If an employee has a grievance with a supervisor, they should first try to resolve their disagreement informally. This usually means talking the matter through.
If talking the matter out at the local level does not work the aggrieved employee can make a formal grievance in writing. 
The grievance should be addressed to the CEO and set out the outcome desired.
The CEO can investigate the grievance, or the CEO can assign someone else to do it who will report back to the CEO.
Once the CEO has made a decision about the grievance, the CEO makes a report in writing to the employee who brought the formal grievance. The CEO should set out what has been found in relation to the grievance, what actions the CEO is going to take, and the reasons for doing this.
If the grievance is still not resolved after these actions, the corporation may wish to bring in a professional mediator.
Employees should be aware that, subject to occupational health and safety legislation (which might mean that a particular work practice has to stop until it is investigated), work should continue while the grievance is being resolved.

Disputes about a modern award or about the National 
Employment Standards
Some workplace disputes will be covered by the dispute resolution provisions in the relevant modern award that applies to the corporation. Typically, clause 9 of a modern award will set out a dispute resolution process for disputes that are about matters under the modern award itself, or about the National Employment Standards.

If the dispute is about either of these things, the modern award provides a multi-step process for dealing with it. The following steps must be followed:  
Step 1: In the first instance the parties must attempt to resolve the matter in the workplace, by discussions between the employee concerned and the relevant supervisor.  If that doesn’t work then the parties will try to resolve the dispute by discussions with more senior levels of management.
Step 2: If the dispute cannot be resolved in the workplace by using Step 1, a party to the dispute may refer the matter to Fair Work Australia. The parties may agree on the process to be used by Fair Work Australia to resolve the dispute. The process could, for example, be mediation, conciliation or arbitration. Fair Work Australia will attempt to resolve the dispute using the agreed process.
Step 3: Where Step 2 has not resolved the dispute, Fair Work Australia may use any process for resolution that it is permitted to use under the Fair Work Act to attempt to resolve the dispute.
An employer or employee may appoint another person or organisation to accompany them or to represent them (or to do both of those things) during the dispute resolution process.
While the dispute resolution process is being conducted, work must continue in accordance with the modern award and the Fair Work Act. Subject to the relevant occupational health and safety legislation, an employee must  comply with directions set by the employer to perform work. 
The Fair Work Ombudsman has published an excellent best practice guide on effective dispute resolution.  
http://www.fwo.gov.au/Best-Practice-Guides/Documents/10-Effective-dispute-resolution.pdf

10_0051