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Victorian water authority washing fringe tax benefit costs away

Victorian water authority washing fringe tax benefit costs away (Last Updated On: October 9, 2014)

A Victorian water authority has removed their employee’s rights to use company cars for personal use due to fringe benefit taxes tripling, the cost to the company was deemed too expensive. For 15 employees this meant that they become ‘worse off’ in their roles and their job entitlements went down the drain.

When the water authority changed the ‘Fleet Management Policy’ in their staff’ contracts the company breached a ‘no extra claims cause’. This means that the company initially hired their staff with the promise that they could use the company cars for personal use. This was seen as an attractive reason to initiate employment.

The water authority however compromised this enterprise agreement and flawed the terms and conditions of their contracts. Staff argued that they were subject to alteration of the agreed terms and conditions in the initial enterprise agreement upon employment. Although the water authority issued a written letter detailing the change in Fleet Management Policy, offered them a one off monetary payment and a proposal for additional supervisory duties, the staff rallied that the breach of employment contract and the enterprise agreement was valid for further compensation.

It is a pressing case and one that many companies could face. Even though the water authority provided staff with alternative entitlements, they still breached their employment contracts.

If you would like to ensure that your contracts do not hold you subject to employment relations claims call Employsure today on 1300 561 415 or fill in the form below. We can help you to foresee flaws in your employment contracts or implement tailored contracts for your business to ensure that should you need to change policies or procedures you can without your staff entitlements being lost.

*Information sourced via Workplace Express website.

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