June 14

Refusal to Employ

Employers are required to walk a tight-rope every time they hire a new employee.  

The Fair Work Provisions that prohibit discrimination against prospective employees are broad.  However, in reality, these situations are almost impossible to enforce.

Discrimination is an essential aspect of the human condition. We ‘discriminate’ thousands of times a day.  When we choose the foods we are going to eat, the people we spend our time with, and, at which exact moment to cross the road. Having the capacity and confidence to discriminate between our life options is what keeps us safe, and makes us successful humans.

When making employment decisions, however, including recruitment decisions, those characteristics that represent ‘lawful’ discrimination and ‘unlawful’ discrimination are not always easy to navigate.  Requiring an employee to have ’30 years’ experience’ is not the same as requiring that person to be ‘over 45’, but there is an essential nexus between these two states that is hard to ignore in practical terms.  On the other hand, there is nothing unlawful about choosing a candidate on the basis of lack of experience, on the grounds that they will potentially cost less, especially in the event that a Modern Award provides that someone below the age of 20 can be paid a lower minimum rate.  Yet, refusing to hire someone because they are not ‘young’ is clearly unlawful.  

Employers who actively advertise for ‘Junior’ or ‘Senior’ employees flirt dangerously with this subtle distinction.

The Fair Work Act provides broad protections against this type of unlawful decision, by prohibiting adverse action against prospective employees on unlawful discriminatory grounds.  Under section 342, adverse action against a prospective employee includes ‘refusing to employ’ that employee, and under section 351 this adverse action cannot be taken for reasons that include race, colour, sex, sexual orientation, age, physical or mental disability, marital status, family or carer’s responsibilities, pregnancy, religion, political opinion, national extraction or social origin.”

The unlawful reason needs to be only one of the reasons, and once an allegation is made, the employer would bear the onus of ‘proving otherwise’.

Most of these protections are obvious ‘no brainers’. They protect us from discrimination on the grounds of the key personal characteristics that we all should know are plainly and obviously wrong.  They are supported by concurrent state and commonwealth antidiscrimination legislation, which are based on international law. Section 351, however, goes a little bit further than the domestic and international antidiscrimination standard, and the full scope of the provision is not easy to pin down, especially when we look critically at some of the more ‘marginal’ characteristics. This is especially the case when the reverse onus is taken into account.  For example, would it be unlawful for the ACTU to ‘refuse to employ’ a candidate because they discover, in a pre-interview social media screen, that the candidate ‘likes’ Cory Bernardi on Facebook – clearly a ‘political opinion’?

Is it ok for an interviewer to ask a candidate ‘What are your responsibilities outside of work? Are you able to take on overtime shifts at short notice?’ and then base part of the decision on this answer?  Or could this be regarded in some circumstances as a refusal to employ based on ‘family or carer’s responsibilities’.   Put more broadly, does it become unlawful to factor ‘availability’ into this decision.  Clearly, this is a relevant employment consideration, yet also dangerously discriminatory in certain circumstances.  Would an employer, seeking an employee with high level logical ability, discriminate against a prospective employee on the basis of what that employer considered to be an illogical religious belief expressed during an interview?

In many cases, disaggregating ‘lawful’ from ‘unlawful’ considerations is actually a lot more difficult than most of us are comfortable admitting to ourselves.

Perhaps my favourite example is my hypothetical law school grads, Bobby and Robbie. They are the final two candidates competing for a position in a traditional top tier firm.  Their resumes, academic transcripts, and experience are virtually identical. Bobby was a high school rugby union star from Knox Grammar. Robbie was a high school rugby league star from St Gregory’s Campbelltown.  The defining moment in Bobby’s successful interview with the Senior Partner was the conversation on the way out the door, when the Senior Partner asks Bobbie his thoughts on the Wallabies’ chances in the next world cup.  As an employment litigator and rugby league fanatic, I would take some pleasure in cross examining the Senior Partner in the Federal Court, where he would be required by the Fair Work Act to discharge a positive onus to prove that ‘social origin’ was not a substantial and operative factor that actuated his decision to favour Bobby over Robbie.  

But perhaps what is most appealing about this hypothetical (aside from the fact that it has brought the topic of rugby league to a conversation where it is not typically invited) is that it illustrates the key practical reality of this issue.  This court case would never happen, because these decisions are made privately and confidentially, and many of these prejudices are buried deeply. The High Court have recently held that ‘unconsious’ decisions cannot offend the general protections provisions. It is not possible to positively prove something that you don’t consciously know.  The sad truth is that the most deeply held biases are held on this level.

Pre-employment discrimination protections exist in a broad and comprehensive manner in Australia, but they are almost impossible to rely upon.  Even with the reverse onus in play, these forms of discrimination are almost impossible to prove, even if you have a knowledge or reasonable suspicion that it has occurred.  

The mind of the pre-employment discriminator is a closed book, and they have been playing this game for along time.    

March 2

The Legal Education Shakedown – who is footing the bill?

As a legal practitioner, business owner and parent, I am often asked to comment on the current state of affairs regarding the interaction between the legal services industry and tertiary education.  We are close to crisis point – and it is now widely recognized that there has been an oversupply of law graduates for a number of years, with 12,000 graduates each year entering a market that at present can only sustain 60,000 practitioners.  Two thirds of students indicate that they intend to practice law, but the reality is that only half of them ever will.    But fixing this may be difficult, given the large number of discrete stakeholders in the Legal world.   Universities, Practitioners, Law Firms, Publishers, the Law Society as well as those offering Practical Legal Training, all have an interest in this issue, and often little interest in cooperating with each other.

The origin of the problem is in the myth that legal study is an automatic pathway to wealth and prestige. It is true that for many hundreds of years, legal education has been highly venerated in society.  Some of history’s great leaders, thinkers and scholars have been lawyers.  But while in academic and social circles Law Graduates have been held (and have most notably held themselves) in high esteem for centuries, the idea that law as a profession is lucrative financially is fairly recent, and already firmly in decline.  It was only in the late 1970s and 1980s that ‘Law’ in the western economies became synonymous with wealth and prestige, and there is no question that the ship has already sailed.    In the modern world, Law is now like any other profession:  there are exceptions for exceptionally talented (or exceptionally lucky) people, but generally speaking the incomes are inline with other professionals.

But there is still a faint cultural perception that a Law degree at university will inevitably lead to  financial and career success.  School leavers and mature age students flock to institutions to study law with little regard to the content of the degree, merely for these perceived vocational guarantees.  Once it was announced in 2009 that the cap on University places would be lifted for the 2012 year, Universities began the process of targeted recruitment.   For these Universities, now run as competitive commercial entities, Law degrees are profitable and cost  little to deliver.   Full time students spend as little as 8 hours per week in the class room, and up to 50 hours per week pouring over text-books, case-books and online databases – but contribute as much as $1,000 per week in fees, some from the tax payer, but mostly from their HECS debt.    With competition between Universities at unprecedented levels, there is little incentive for them to ensure that applicants are suitable, or even capable, of studying the degree.  In my opinion, if Universities are to be run as competitive commercial institutions, then they too should face the consumer controls that other commercial entities face.  Section 18 of the Australian Consumer Law for example, prohibits ‘misleading and deceptive conduct in trade or commerce’.  Is it not misleading to recruit law students to expensive degrees in a manner which is so divorced from the vocational reality they face?  Alternatively,  the Australian Consumer Law also provides consumer guarantees that services be ‘reasonably fit for any purpose that the consumer, expressly or by implication, makes known to the supplier ‘.   Law firms now report that in order to be considered  for a role a graduate must be achieving a Distinction or High Distinction Average, have volunteered their time for worthy causes, been involved in impressive extra-curricular activites, be well presented, charming and (basically) better than the other 10 candidates that have those qualities.    Is a P / C average degree from a Law School ‘fit for this purpose’?

But the story for most law students is not over yet.  Those who finish, most of whom by that stage are burdened with close to $40,000 debt after 5 years of study, are then required by the Law Society to complete Practical Legal Training (also known as a “Graduate Diploma of Legal Practice”) before they can be admitted as a solicitor.  This is yet another highly competitive tertiary education marketplace, which will cost graduates roughly another $8,000 in fees for 13 weeks of study,  and very probably involve them concurrently working in a law firm without remuneration for up to 75 days.   From an academic perspective PLT offers law graduates virtually nothing they either don’t know, or should already know from many years of studying law.  In terms of practical skills, as far as many practitioners are concerned PLT offers them nothing at all – certainly nothing that they need to know to face the realities of legal practice.   It is just yet another way for tertiary institutions to perpetuate the ‘shake down’ of ambitious prospective lawyers – to squeeze another $10,000 out of them before their aspirations run dry.

It should also be understood that for at least the first two years, a new solicitor is in supervised practice in any case.    To ensure clients are protected the most important threshold , in my view, is when a practitioner seeks their unrestricted practicing certificate.  In my opinion the PLT should be abandoned completely prior to this stage.  We should allow the graduates be admitted as solicitors as soon as they have graduated from their degrees.  They can then be in supervised practice for two years.  When a solicitor seeks their unrestricted certificate,  it would be highly appropriate for the Law Society  to see them at this stage jump through some more hoops relating to ethics, confidentiality, trust accounting etc. Further exams have far greater purpose, and are better served as part of this more significant gateway.  It would also give the graduate a long overdue opportunity to earn some actual money to pay all of these fees.

And if we really want interns in law firms working for free, perhaps this should happen between high school and university.  If the school leavers were given a dose of the legal industry in advance of University, we might just save some of them 5 years and $50,000 – and potentially send them in the right direction in the first place.