Employee or Manager?

The Australian Fair Work Commission often must rule in this matter of defining whether an employee is a Manager or employee subject to an Award.


The following duties and responsibilities and duties define the role of a manager;


– The authority to recruit and dismiss staff

The authority to bind the company to any contracts

– The authority to establish objectives for the business such as sales targets

– Participate in the policy direction of the company, and

– Responsibility for preparing a budget.

Not these factors need to be present for a person to be deemed as a manager but the existence of any of these responsibilities would suggest an executive role within the company structure.

An example is a recent case where the employee was described as a “field sales manager.” The tribunal ruled the employee was covered by the Award as the employee had no authority in the responsibilities.

HR Policies and Procedures should clearly state position descriptions and responsibilities.

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