Fair Work Commission

Model consultation term – Schedule 2.3

(regulation 2.09)

1. This term applies if the employer:
   
   1. has made a definite decision to introduce a major change to production, program, organisation, structure or technology in relation to its enterprise that is likely to have a significant effect on the employees; or
   2. proposes to introduce a change to the regular roster or ordinary hours of work of employees.

Major change

2. For a major change referred to in paragraph (1)(a):
   
   1. the employer must notify the relevant employees of the decision to introduce the major change; and
   2. subclauses (3) to (9) apply.
3. The relevant employees may appoint a representative for the purposes of the procedures in this term.
4. If:
   
   1. a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and
   2. the employee or employees advise the employer of the identity of the representative;
      the employer must recognise the representative.
5. As soon as practicable after making its decision, the employer must:
   
   1. discuss with the relevant employees:
      
      1. the introduction of the change; and
      2. the effect the change is likely to have on the employees; and
      3. measures the employer is taking to avert or mitigate the adverse effect of the change on the employees; and
   2. for the purposes of the discussion – provide, in writing, to the relevant employees:
      
      1. all relevant information about the change including the nature of the change proposed; and
      2. information about the expected effects of the change on the employees; and
      3. any other matters likely to affect the employees.
6. However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.
7. The employer must give prompt and genuine consideration to matters raised about the major change by the relevant employees.
8. If a term in this agreement provides for a major change to production, program, organisation, structure or technology in relation to the enterprise of the employer, the requirements set out in paragraph (2)(a) and subclauses (3) and (5) are taken not to apply.
9. In this term, a major change is likely to have a significant effect on employees if it results in:
   
   1. the termination of the employment of employees; or
   2. major change to the composition, operation or size of the employer’s workforce or to the skills required of employees; or
   3. the elimination or diminution of job opportunities (including opportunities for promotion or tenure); or
   4. the alteration of hours of work; or
   5. the need to retrain employees; or
   6. the need to relocate employees to another workplace; or
   7. the restructuring of jobs.

Change to regular roster or ordinary hours of work

10. For a change referred to in paragraph (1)(b):
    
    1. the employer must notify the relevant employees of the proposed change; and
    2. subclauses (11) to (15) apply.
11. The relevant employees may appoint a representative for the purposes of the procedures in this term.
12. If:
    
    1. a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and
    2. the employee or employees advise the employer of the identity of the representative;
       the employer must recognise the representative.
13. As soon as practicable after proposing to introduce the change, the employer must:
    
    1. discuss with the relevant employees the introduction of the change; and
    2. for the purposes of the discussion – provide to the relevant employees:
       
       1. all relevant information about the change, including the nature of the change; and
       2. information about what the employer reasonably believes will be the effects of the change on the employees; and
       3. information about any other matters that the employer reasonably believes are likely to affect the employees; and
    3. invite the relevant employees to give their views about the impact of the change (including any impact in relation to their family or caring responsibilities).
14. However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.
15. The employer must give prompt and genuine consideration to matters raised about the change by the relevant employees.
16. In this term:
    relevant employees means the employees who may be affected by a change referred to in subclause (1).