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  1. #1
    Join Date
    Aug 2013
    Posts
    4

    Default Reimbursement of Medicals, flights

    Hi

    Recently we have had a run of new starters (casuals) start and after 2 weeks (even less on some occassions) resign. These employees are FIFO workers who also require a preemployment medical valued at about $700 to access mine sites to complete their work, as well as complete lengthy inductions, and be flown to site.

    Has one successfully added a clause to new starter engagement letters to state the reimbursement of costs of medicals, flights to be included, in the event that the person resigns in less than 3 months for example?

    We have found that people are using our business as a stepping stone to gain employment with bigger companies that can pay more money etc. Majority of our employees are unskilled and therefore jumping across to Peggy jobs, TAs has been common.

    Your advice would be greatly appreciated.

  2. #2

    Default

    Couple of questions if I can....Does the medical check get given to them when they have done it and is it a case of once you have had one then thats it they can use for the next company?

  3. #3
    Join Date
    Aug 2013
    Posts
    4

    Default

    Often they will need to be mobilised to several sites. They generally are valid for 2 years. It hasn't been practice to give it to them.

  4. #4

    Default

    So are you talking about sites within the one company or spread across a number of companies? If its across a number of companies then I would have assumed that each company would require them to do another medical check....I know I would.

  5. #5
    Join Date
    Aug 2013
    Posts
    4

    Default

    actually the different companies accept the same medical. It is more of a case of us declaring that he is fit for work and in order to do that we need to fulfill certain requirements in the medical. Doing this several times would cost a fortune, as i mentioned earlier $700 each. We do need to conduct Drug and Alcohol testing more often though but this is seperate to the medical.

    Do you think that this is possible to include a clause in an employment contract to have this cost reimbursed?

  6. #6
    Join Date
    May 2010
    Location
    Melbourne
    Posts
    151

    Default

    Not sure if you could, but from a practicalities point of view what would you be reimbursed from? Hiring them as casuals, they won't have leave entitlements to hold onto, the smart ones will finish up on pay day and then you won't have wages to be withholding from then either. You should also note that the FWA Ombudsman is also taking a dim view of any payments being withheld from wages at present as well, unless the employee gets a real benefit from the deduction, they are siding with the employee on almost every complaint.

    So your option left then is to chase the money through debt collection. Sounds like it is a workforce that won't have a particular fixed address too long so that might be a bit hard.

    Anyway (subject to adverse impact on recruitment obviously) that you could have the employee pay half of the medical up front and look to reimburse after 6 months? What happens with the cost for those that fail the medical?

  7. #7
    Join Date
    Aug 2013
    Posts
    4

    Default

    Quote Originally Posted by Cottoneyes View Post
    Anyway (subject to adverse impact on recruitment obviously) that you could have the employee pay half of the medical up front and look to reimburse after 6 months? What happens with the cost for those that fail the medical?
    That might be an option...

    We wear the cost of a failed medical. I guess it is a risk that we need to take and improve our screening process.

  8. #8

    Default

    Was just about to say "make them pay for it and then pay them back after their 12 month qualifying period"

  9. #9
    Join Date
    Sep 2013
    Location
    SA
    Posts
    14

    Default

    The issues here relate to business costs. I assume there is a probation period; here such periods are generally provided to allow both parties to assess each other in suitability, it’s not seen as a unilateral period.

    You will not be permitted to have the employee pay for the medical testing etcetera as it will be prohibited by section 326(1) that provides inter alia that a term of a contract of employment has no effect if it 'requires, or has the effect of requiring an employee to make a payment to an employer or another person as it would be seen as directly (or indirectly) benefiting the employer or another person' [other companies] (that is the need for the medical to be employed).

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