RSL Clubs Compliance with AS 3806:2006 - Assignment Example

RSL Club’s Compliance with AS 3806:2006 Contents RSL Club’s Compliance with AS 3806:2006 2 a) Executive Summary: AS 3806:2006 2 ii) Main legislation RSL needs to follow up 4 C) i) Functions/operations of RSL affected by these pieces of legislation 5 ii) Authorities involved in areas stated in b. i 6 iii) Penalties for non-compliance 7 iv) Risks/consequences for breach 8 d) (i) Policies and practices RSL currently has 9 e) General “program” options 10 F). Ways each of the three areas best fits compliance obligations 12 RSL Club’s Compliance with AS 3806:2006 a) Executive Summary: AS 3806:2006 AS 3806:2006 are a set of standards that specify the principles essential for the creation, implementation and substance of compliance programs that can be deemed to be efficient in the running of an organization. The principles stated in the standards are meant to enable organizations to identify and amend deficiencies in complying with codes of conduct, regulations and establish processes that enable sustained improvement in the area (CommitteeQR-014 2006). The standards sets out the guiding principles that organizations can use to design, develop, implement, maintain and improve their compliance programs. With this regard, compliance refers to the impacts experience by an organization when it meets its obligations as required by the law or certain regulations. The principles also specify the guiding procedure and policies that can help an organization to attain compliance by integrating it into all areas of its operations. Principle 1 specifies the need for the top management to actively commit to compliance programs, if the outcome of program has to take full effect across the organization. Principle 2 outlines how the compliance policy should be aligned to the corporate strategy and objectives. Principle 3 outlines the fundamentals necessary for allocation of resources across the organization. Principle 3 sets out that organization should set objective that drive it towards complying with the compliance policy. Other key principles include principle 5, that stipulates that organizations should identify compliance obligations and the way in which they affect the operation of the firm. A key compliance area within this principle is that an organization should comply with compliance obligations as set out by the common law, treaties or protocols, state statures and permits of licenses. Principle 11 is also a key rule specifying that organizations should demonstrate that the compliance programs comply with documentation procedures. The key compliance area within this principle includes the need for organization to keep accurate records of the organizations compliance activities (CommitteeQR-014 2006). b) i). Key compliance areas for RSL Club Food Preparation: RSL Club strives to ensure that its employees who undertake or supervise the processes of handling and preparing food have the competency in food safety and hygiene matters through recruiting individuals who are rightly qualified and have shown competence in the area. Further, it strives to ensure that it only accepts food from valid vendors, who have shown proof of protecting the food from contamination. RSL also ensures that the staff is neat, clean and tidy, with the dress standards remaining at the discretion of the duty manager. RSL Club also strives to ensure that food is stored in a manner that ensures it is protected from any likelihood of contamination, and that the conditions of storage do not compromise the safety of the food. Potentially perishable food is stored under temperature controls to also ensure that such food does not lose its suitability. Workplace obligations: RSL Club also strictly adheres to principle 5, which specifies that organizations should identify compliance obligations and comply with them. In line with the principle, RSL strives to adhere to all federal and state legislations as well as industry standards that specify the conditions for working environment. For instance, employees are paid equitably depending on their qualifications and work experience as specified by Fair Work Act 2009. Unfair dismissal or employees is also kept under check in compliance with the Act. RSL also ensures that workers work under environment that is free from injuries, accidents, harassment, bullying and discrimination (Ballina RSL Club 2013). Records Management: In compliance with principle 10, RSL Club is actively involved in effective record keeping procedures as part of its code of conduct dubbed “Access to Management and Financial Administration” (Ballina RSL Club 2013). For instance, the organization designs, develops, and maintains processes that enable it to seek and receive feedback on its compliance performance through its website and suggestion boxes. Customers are also free to offer their reviews or contact the company through its website. It also has process control logs, which enable registration of members to the club and tracking their activities. ii) Main legislation RSL needs to follow up Food preparation: The legislations specifying the requirements for food storage by businesses in Australia are generally state-specific. In New South Wales, the legislations include Food Act 2003 and Food Regulation 2010, both of which specify that businesses should adopt standards as set out by Australia New Zealand Food Standards Code - Standard 3.2.2, set out by FSANZ, the regulatory authority. Australia New Zealand Food Standards Code - Standard 3.2.2, specifies the standards for food preparation. With regard to Australia, food business must comply with specific standards when handling food to ensure they are safe and suitable. Workplace obligations: Fair Work 2009 stipulates that employers are legally obligated to meet the national requirements for minimum wage and conditions for work. In addition, they should adopt the national ‘Modern Awards’ as well as avoid engaging unfair worker dismissal, engage enterprise bargaining, observe recordkeeping requirements as well as ensure general protection of the workers. For instance, Section 336 of the Fair Work Act 2009 protects employees from all forms of victimization or discrimination at work. C) i) Functions/operations of RSL affected by these pieces of legislation Food preparation: The Club director, the catering manager and the duty manager, who doubles as the housekeeping supervisor, are responsible for overseeing that food safety standards as specified on Chapter 3 of the Australia New Zealand Food Standards Code are complied with. The housekeeping supervisor inspects the storeroom to ensure that the arrangement is up to standards and that the store is clean, vermin-proof, well ventilated and orderly. He also ensures that the store and the storage facilities are clean and up to standard, and that the storeroom staff wear clean clothes. The catering manager oversees all sanitary regulations with regard to handling food. He also ensures that food is stored in a manner that ensures it is protected from any likelihood of contamination, and that the conditions of storage do not compromise the safety of the food. Workplace obligations: The Board, the CEO and the senior-level management develops, reviews and approves the RSL Club policies and principles, which sets out the measures, procedures, systems that can be applied to ensure the club complies with the state and federal regulations and legislations that ensure employees are treated fairly in compliance with Fair Work Act 2009. In addition, various other people, including the supervisors and the entire RSL Club staff, are actively involved in the internal control processes so as to provide checks and balances thus ensuring that the club’s policies operate as expected. For instance, the RSL Club staff in New South Wales may ensure that the members comply with NSW Smoke-free Environment Amendment Act 2004, by ejecting those who smoke in prohibited places (Smithfield RSL 2012). A smoke-free environment ensures that the health of the employees is protected. The general manager of each RSL Club branch is responsible for ensuring that the Club acts in the best interest of its staff, members and guests by ensuring compliance with the set out company policies. The CEO, management team and the board also see to it that contractual obligations are protected by the law. For instance, they ensure that employees’ contract are in line with the Fair Work Act 2009. ii) Authorities involved in areas stated in b. i The industry is hugely regulated by a set of state, federal and local government authorities. RSL Club is subject to a number of zoning, planning and regulations from gaming and wagering, liquor licensing, local councils, food safety regulations as well as federal regulations overseen by Australian Competition and Consumer Commission, FSANZ, Fair Work Ombudsman, Fair Work Commission, Australian Competition and Consumer Commission, Australian Bureau of Statistics, AUSTRAC and Australian Taxation Office. Food preparation: Responsibility for regulating food preparation lies with the food safety auditors and food safety regulators, such as the Food Standards Australia New Zealand (FSANZ). The agency is charged with the responsibility of developing, adjusting and setting standards for foods available in Australia and New Zealand. It also sets codes of practices within the hospitality industry. It also regulates and oversees the standards of food to ensure it is safe and suitable as specified by the Australia New Zealand Food Standards Code (the Code). Workplace Obligations: Fair Work Commission (FWC), oversees that organizations meet minimum wage regulations, as specified by the Fair Work Act 2009. FWC is also involved in resolving disputes between the organizations and employees, approving enterprise agreements and resolving issues of unfair dismissal. Fair Work Ombudsman (FWO), also investigates workplace conflicts and complaints and ensures compliance with workplace laws, by offering workers and organizations advice and information on workplace relations system. iii) Penalties for non-compliance Workplace obligations: If an organization breaches the Fair Work Act 2009, the federal court or an eligible state court may order the organization (on application) to pay financial penalty that the court deems as appropriate if there is confidence that the organization has actually flouted a civil remedy provision, which is provided for under Fair Work Act section 539 (1) to (3) (Australian Government 2013). Penalties for breaching payment of wages is specified in sections 323(1) and 328(1) to (3), while penalties for breaching unfair dismissal are contained in section 405 of the FWA. The value of penalty is prescribed under Crimes Act 1914 section 4AA (NSW Business Chamber 2012). Concerning employee records and pay slips, an infringement notice can be issued to the organization (employer) who breaches the pertinent workplace laws, which specify that employers must keep employee records and pay slips. Inspectors from the Fair Work Ombudsman may, after verifying the existence of contravention of the organization’s record-keeping obligations, issue infringement notice, as provided for in the Fair Work Regulation 2009 and Fair Work Act 2009. The maximum infringement notice fine is $2,550 per contravention for an organization, and $510 for an individual. The notice of infringement must be issues within 12 months from the day the contravention is claimed to have occurred (Fairwork Online 2013). Food preparation: The breach of the Code (the Food Standards Australia New Zealand Act 1991 of the Commonwealth of Australia) that specifies the practices effecting for managing food safety risks can attract a penalty of up to $550,000 and or two years of imprisonment (NSW Food Authority 2008). iv) Risks/consequences for breach Aside from contravening the law, as mentioned above, the organization faces several other risks by failing to comply with the state or federal legislations. For instance, by giving workers law wages in contravention of the Fair Work Act 2009, the organization’s reputation is put on the line specifically in case the workers decide to take an industrial action. This can have impacts on the organization’s economic performance as it has the potential to lead to high employee turnover rate. This may also cost the organization in terms of competitiveness, as its members may seek alternative clubs. Violation of legislations for food preparation and storage has potential to cause food safety risks, resulting to poor food standards which may put the organization’s reputation on the line as well as sever customer relationships. A likely scenario is that the organization may experience a reduced customer base and diminished customer loyalty, leading to low sales. However, the organization may remedy this risk through adopting an effective compliance program, for instance adopting training programs for its staff on the compliance programs, standards and procedures. The compliance risk may as well be mitigated using internal review processes, such as monitoring and auditing of the operational processes to identify the weaknesses in operation, that have the potential to expose the organization to government or claims by possible whistleblowers. Even as there are many methods that can be employed in the assessment, periodic audit by internal or external auditors of compliance can prove very effective. Additionally, periodic evaluation of the organizations business arrangement legality can help the organization to identify the areas of weakness, thus avoiding risks of non-compliance. Therefore, the organization should respond properly to the identified claims of deficiencies d) (i) Policies and practices RSL currently has Access to financial administration information To ensure observance of state and federal regulations outlining procedure for treating workers equally and providing suitable working conditions, RSL maintains a policy called “access to management and financial administration” which requires that it keeps a record of salaries of top management, a list of returns, declarations and disclosures made by the employees of the club’s governing body, the club’s annual financial reports, yearly gaming profits, details of contracts implemented by the club, employee salaries, the club’s records of social responsibility programs. Non-smoke free environment RSL has a non-smoke free environment policy specifically established to protect the health of the workers and patrons from passive smoking effects. As a result, smoking in licensed indoor premises is outlawed. The policy serves to ensure that the workers works under suitable conditions as well as RSL Club’s commitment in ensuring workers’ health are protected (Ballina RSL Club 2013). General Procedures RSL Club also has the policy that no food or beverage be brought into the club’s premises from outside, except on special occasions such as birthdays or weddings. This is to ensure that RSL Club’s members are protected from instances of consuming unregulated food. The policy also serves as a food safety risk measure to ensure that the club is protected from claims of promoting health risks through consuming unregulated foods inside the licensed RSL Club premises. e) General “program” options Workplace obligations RSL Club should have a compliance monitoring and risk unit that consists of a group of highly motivated consultants charged with the duty of coming up with a range of support services to asses, create and improve operational processes. The unit should work collaboratively with the club’s executive and management to assess the working conditions, as well as audit and assess the employees’ capabilities, performances and recommend rewards or promotions. This will ensure that the employees are highly motivated and that the organization complies with principles of Fair Work Act 2009, such as in avoiding unfair employee dismissals and paying its employees’ wages that are commensurate with their work experience and qualifications in compliance with the Act. RSL Club should also have data analysis and performance reporting system, that ensure that the club complies with state and federal statutes such as Public Records Act 2002 and record keeping principles that ensure the records are appropriately generated, processed, arranged, stored and disposed through promotion of recordkeeping best practices. Food Preparation RSL Club should also have a staff training, networking and professional development program to ensure that the staff is highly trained to meet its policies such as responsible food service, as well as legislative requirements for handling of food. The training and development program is an organizational strategy aimed at ensuring that the human resource is imparted with skills that can lead to better performance of both the individual workers and the employees. RSL Club can do the training to newly recruited staff or the old staff. It should be strictly aimed at bettering the clubs service delivery level. Within the training, the significance of adhering to the club’s policy should be underscored, as well as the risk the organizations and individuals are exposed by failing to comply (Baca et al 2007). It should also set out standards of behavior expected from the club members and. The code of conduct should also promote values expected from the members who may encourage carrying their own food or beverages. RSL Club should develop code of conduct set out to promote the club’s corporate values and commitment to comply with the state and federal laws and regulations. The code of conduct should stress the club and its workforce’s commitment to honesty and integrity in its business operations with the community. It should also aim to stress that individuals have an obligation to report behaviors exhibited by the staff or the club members that are deemed as inappropriate or unethical. Various measures can be established to ensure that ethical business behavior is exhibited by the staff. Developing a code of conduct for responsible handling of food can also be crucial (Stuter n.d.). F). Ways each of the three areas best fits compliance obligations Of the six ways outlines above, the most suitable ways that best fits the compliance obligations include developing a staff training, networking and professional development program. Employee knowledge and capacity development is vital for hospitality industry, where organizations are routinely valued based on their intellectual and service capacity. Training is able to incorporate all the three areas, including access to information, responsible alcohol service and state and federal statute compliance. Training and development enables the workforce to realize their potentials and eventually work at their best levels in ways that are aligned to the corporate strategy. Indeed, maximizing their potential has a direct positive effect on the Club’s profit level (Ryan 2011). When employees are routinely trained, they are able to practice ethical standards in their service. In addition, they are able to learn about the relevant state and federal statutes and their implications. They are also able to understand the needs and values of the customers, and work hard to keep them satisfied. Trained employees can as well handle more responsibilities as they have newly acquired knowhow, thus improving their flexibility (Ekot 2010). In conclusion, strict compliance with AS 3806:2006 enables RSL Club to identify and amend deficiencies in complying with codes of conduct, regulations and establish processes that enable sustained improvement in the area. In this way, critical areas that may damage the club’s repute are put under check. Further, the club is able to align goals and objective to corporate strategy (Rankins 2006) References Austlii. 2009a. Interactive Gambling Act 2001. Retrieved from: Accessed 22 June 2013 Austlii. 2009b. Liquor Licensing Act 1997 - Sect 36. (Online) Retrieved from: Accessed 22 June 2013 Australasian Gaming Council. 2013. Frequently asked Questions. (Online) Retrieved from: Accessed 19 June 2013 Australian Government. 2010. The Australian Consumer Law. (Online) Retrieved from: Accessed 3 July 2013 Australian Government. 2013. Infringement Notices. Fair Work Ombudsman (Online) Retrieved from: Accessed 21 June 2013 Ballina RSL Club. 2013. Ballina RSL Club Ltd Policies and Regulations. (Online) Retrieved from: Accessed 22 June 2013 Baca, C, Bull, L., Cooke-Davies, T and Porskrog, S. 2007. The Path to Organizational Achievement of Strategic Business Improvement. Atlanta, GA. Global Congress Proceedings Committee QR-014. 2006. Australian Standard Compliance programs: AS3806-2006. Sydney. Standards Australia Ekot E. 2010. Employee Training and Development: Reasons and Benefits. The Legal Secretary Journal. (Online) Retrieved from: Accessed 21 June 2013 Fairwork Online. 2013. Employers fined for breach of workplace laws. (Online) Retrieved from: Accessed 21 June 2013 Gambling and Racing Commission. 2009. ACT Gambling Code of Practice Interactive Gambling Providers. (Online) Retrieved from: Read More