Managing the Fuel Crisis: How Can CCIWA Help

The ongoing fuel crisis is having flow-on effects to workplaces, and the real estate industry is no exception. 

Rising costs are affecting employers and employees, leading to operational challenges, workforce conversations and broader business decisions. 

See how CCIWA can provide support through.

Business Considerations

Allowances

Employers across the real estate sector have increasingly asked whether fuel allowances or reimbursements can be introduced during the current fuel crisis. Any such payment would sit above existing minimum entitlements and is therefore a discretionary business decision. 

Where employers do choose to provide additional support, it is important to clearly define the parameters. Without clear limits, a temporary allowance may accidentally become an implied term of employment. To manage this risk, any increase should be documented in writing, specifying the amount, duration and whether it is intended as a oneoff or timelimited measure. 

At this stage, there is no legal requirement under the Real Estate Industry Award 2020 to increase vehicle allowances in response to fuel price pressures. 

Redundancy

Where rising operating costs require changes to business structure or staffing levels, employers should take care to follow a procedurally fair redundancy process to reduce the risk of an unfair dismissal claim. 

A redundancy is genuine only where the role itself is no longer required to be performed by anyone. Employers must also meet consultation obligations before any final decision is made. 

In practice, this usually involves a threestep process, with reasonable notice (generally around 24 hours) provided before each meeting: 

  1.  Atrisk meeting: The employee is advised that their role is at risk of redundancy. No final decision should be made at this stage. 
  2. Consultation meeting: The proposed changes are discussed, and both parties can explore alternatives, including potential redeployment. 

Outcome meeting: The employer communicates the final decision, whether this is termination due to redundancy or redeployment into a suitable alternative role.

Managing Employee Performance

Fuel cost pressures are also contributing to stress and fatigue among employees, which may impact performance. In these circumstances, it is important to distinguish between issues of capacity or skills rather than motivation. 

A fair and effective performance management process typically progresses through three stages: 

  1.  Casual conversation: For minor or firsttime issues, an informal discussion may be sufficient. Employers should keep an internal note confirming the conversation occurred. 
  2. Counselling: Where issues persist, a more structured discussion helps identify barriers and agree on next steps. 
  3. Performance Improvement Plan (PIP): Where there is a clear gap between expected and actual performance, a PIP should outline expectations, timeframes, support measures and potential outcomes if improvements are not achieved. 

How CCIWA Can Help

CCIWA’s Employee Relations Helpline can:  

  • Provide compliant advice on redundancy processes and consultation obligations, helping reduce the risk of successful unfair dismissal claims. 
  • Assist with procedurally fair performance management to establish a clear, welldocumented basis for any employment decisions. 

For further information please call the Employee Relations Helpline on 08 9365 7660 or email advice@cciwa.com.  

CCIWA’s policy & advocacy team is advocating to State and Federal Governments to:  

  • Maintain WA’s competitiveness by securing fuel supply and addressing distribution risks. 
  • Avoid policy responses that amplify inflationary or cost pressures. 
  • Provide clear, factual and regular communication during the crisis. 
  • Deliver government support measures that are timely, targeted and temporary. 

Feedback to support ongoing advocacy can be provided at policy@cciwa.com  

In addition, CCIWA’s Human Resource and Workplace Relations Consultants can work directly with businesses to manage redundancy and performance processes, either in an advisory role or by undertaking these processes on the business’ behalf.

Written By Ravini Coorey – Employee Relations Officer

CCIWA, Business Law WA and REEFWA has taken all reasonable care in preparing this document. The contents of this document do not constitute legal advice and should not be relied upon as such. Specific advice for your situation should be sought from CCIWA, Business Law WA or a professional adviser before any action is taken. Neither REEFWA, CCIWA nor Business Law WA accept responsibility for any claim that arises from any person acting or refraining from acting on the information contained in this document.

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