In a post on June 22, I noted that the Queensland Government had legislated to make it mandatory for incorporated associations to have a formal grievance procedure incorporating the rules of natural justice in membership disputes. This means that the procedure must allow for a person to know the case against them, be given reasonable opportunity to respond to it, and be given a fair and unbiased opportunity to be heard in relation to it.
The grievance procedure must also include the opportunity for the parties to attempt to resolve the issues between them by participating in a mediation or similar process.
Except in exceptional circumstances a party will be prevented from applying to a court for assistance until the grievance procedure has been followed.
The OFT is currently consulting on the detail, in particular, on the content of the model rules which are to be amended to set out a grievance procedure.
If an association’s rules do not include a grievance procedure the procedure in the model rules will apply. Additionally, if the associations rules do include a grievance procedure but the requirements that a person be afforded natural justice are not met by that procedure, the procedure in the model rules will apply.
It is important that an association now consider its rules and processes to ensure ongoing compliance with the law in a way with is aligned to its mission and values and circumstances.
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