COMMISSIONER BULL SYDNEY, 26 FEBRUARY Application for approval of the Serco Traffic Camera Services Employment Agreement 2013.

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1 [2014] FWCA 1387 DECISION Fair Work Act 2009 s Application for approval of a single-enterprise agreement Serco Traffic Camera Services (Vic) Pty Ltd (AG2013/12055) SERCO TRAFFIC CAMERA SERVICES EMPLOYMENT AGREEMENT 2013 Miscellaneous COMMISSIONER BULL SYDNEY, 26 FEBRUARY 2014 Application for approval of the. [1] An application has been made for approval of an enterprise agreement known as the (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement. [2] On 8 January 2014, the Commission wrote to the Applicant, the Australian Municipal, Administrative, Clerical and Services Union (ASU), the Community and Public Sector Union (CPSU), being bargaining representatives for the Agreement and the employee bargaining representatives, with respect to a number of concerns it had with aspects of the Agreement. In particular, the concerns related to the hours of work, public holidays, meal allowance, casual loading, and overtime. [3] Correspondence was received from the Applicant in relation to the issues raised by the Commission on 15 January [4] Accompanying the application for approval of the Agreement, the ASU and the CPSU filed a Form F18 - Declaration of employee organisation in relation to an application for approval of enterprise agreement. The ASU and the CPSU both declared in their Form F18 that the Union supported the approval of the Agreement by the Commission. [5] On 13 January 2014, correspondence was received from the CPSU and an employee bargaining representative outlining concerns they had with respect to certain aspects of the Agreement. In particular, the concerns related to part-time employees, annual leave loading and shift workers. [6] Upon review of the correspondence from the Applicant and the concerns raised by the CPSU and the employee bargaining representative, the Commission listed the matter for conference. 1

2 [2014] FWCA 1387 [7] A conference was held on 29 January The Applicant attended the conference in person while the CPSU, the ASU and the employee bargaining representatives appeared via telephone. Part-time employees [8] During the conference the CPSU advised the Commission that it did not support the approval of the Agreement based on the information that it had been provided with to date. In particular, the CPSU s concerns related to the part-time employees not being provided with specified hours of work. [9] Clause Part-time employment of the Miscellaneous Award 2010 (the Award), being the relevant modern award for the purposes of the better off overall test, states that with respect to a part-time employee, the employee and the employer must agree in writing on a regular pattern of work including the hours to be worked and the starting and finishing times on each day. Further, the Award states that these hours once fixed can be varied at any time by agreement, however, any agreed variation to the regular pattern of hours will be recorded in writing. [10] The CPSU submitted that because of the work undertaken by the Applicant it is difficult to define the start and finishing times, however, defining the number of weekly hours should not be affected but the Applicant has declined to discuss this to date. [11] The CPSU stated that this issue impacts on the employee s pay as the part-time employees are only paid overtime when their hours of work exceed 76 hours in a fortnight. The CPSU submitted that the number of part-time employees working less than 76 hours a fortnight has increased as the Applicant has employed more part-time employees, reducing the hour s available to other employees. [12] The CPSU told the Commission that it had unsuccessfully attempted to obtain rostering and timesheet information from the Applicant in order to investigate this concern. [13] During the conference the Applicant undertook to provide an analysis of a number of part-time employees to demonstrate that part-time employees were better off overall under the Agreement when compared to the Award despite not having an agreed regular pattern of work and to provide data to show the actual hours of work undertaken by part-time employees from the past 12 months. It was agreed during the conference that any concerns relating to the information provided by the Applicant would be raised in writing with the Commission within 7 days of receiving the correspondence. [14] This information was provided to the Commission, the CPSU, the ASU and the employee bargaining representatives on 11 February The CPSU wrote to the Commission on 18 February 2014 and stated that based on the information provided, the CPSU does not oppose the making of the Agreement. [15] No correspondence was received from the ASU or the employee bargaining representatives. 2

3 [2014] FWCA 1387 Meal allowance [16] In its correspondence to the Applicant and the bargaining representatives, the Commission noted that at clause 19 Meal Allowance, of the Agreement it provides that where an employee is called into work with less than 12 hours notice, he/she will be entitled to a meal allowance of $ The Award, at sub clause 15.4 that where an employee is required to work more than one hour of overtime after the employee s ordinary time of ending work without being given 24 hours notice must be either provided with a meal or paid a meal allowance of $ If the overtime exceeds four hours a further meal allowance of $15.09 must be paid. [17] The Applicant submits that the frequency of employees being requested to work overtime with less than 24 hours notice is extremely low and when this happens it is compensated for by employees receiving substantially higher minimum rates of pay compared to the Award. [18] The Applicant provided calculations to demonstrate this. Casual loading [19] The Commission notes that at sub clause 10(e) of the Agreement it provides that a casual employee will be paid an additional loading of 20 per cent. The Award provides for a 25 per cent loading with respect to casual employees. [20] The Applicant submits that where an employee is engaged as a casual they would be better off by $3.51 to $13.61 per hour dependent on the classification under the Agreement when compared to the Award. [21] The Applicant provided calculations to demonstrate this. Span of ordinary hours [22] In its correspondence to the Applicant and the bargaining representatives, the Commission notes that the Agreement provides for the following span of ordinary hours: Sub clause 22(c) of the Agreement provides for the span of ordinary hours between 7:00am and 7:00pm, irrespective of the day of the week for mobile road safety camera operators. Sub clause 23(b) of the Agreement provides for the span of ordinary hours between 5:30am and 8:30pm, Monday to Friday for evidence management employees. Sub clause 24(b)(i)(ii) of the Agreement provides for the span of ordinary hours for Operations Support Officers between 5:30am and 8:00pm, irrespective of the day of the week and for SOC employees 5:30am and 8:30pm, Monday to Friday. [23] The Award at subclause 22.2(a) states that all work performed by an employee, other than a casual, outside the hours of 7:00am and 7:00pm, Monday to Friday, and on Saturday which is not overtime, must be paid at the rate of 120% of the relevant minimum wage and sub clause 22.2(b) states that all work performed by an employee, other than a casual, on Sunday which is not overtime must be paid a the rate of 150% of the relevant minimum wage. Further, under the Award at sub clause 22.2(c)(d) it provides that casuals who perform work 3

4 [2014] FWCA 1387 outside the hours of 7:00am and 7:00pm, Monday to Friday, must be paid at the rate of 145% and on a Sunday 175%. [24] The Applicant was requested to provide correspondence outlining how employees are better off overall, given the increase in the ordinary span of hours [25] The Applicant submits that the higher rates of pay contained in the Agreement compensates for the additional span of hours. The Applicant has provided a number of calculations to demonstrate that employees are better off overall under the Agreement, despite the increase in the ordinary span of hours. Overtime [26] The Commission notes at sub clause 26(b) of the Agreement it provides that an employee who performs overtime will be granted either time off at the rate of one hour for each additional hour worked, with no loss of pay, or payment for the hours worked at a rate of time and one half. [27] The Award at sub clause 22.1(a) provides that for all time worked in excess of an average of 38 hours per week by a full-time employee or in excess of the agreed number of hours per week by a part-time employee is overtime and must be paid at the rate of 150% of the relevant minimum wage for the first three hours and 200% of the relevant minimum wage thereafter. [28] The Commission requested correspondence outlining how employees are better off overall under the Agreement with respect to the overtime penalty. [29] The Applicant provided a number of indicative examples where employees have performed overtime. The examples provided demonstrates that employees are better off overall where overtime is worked. Public holidays [30] The Commission notes that at subclause 29(h) of the Agreement, with the exception of Christmas Day, Good Friday and New Year s Day, employees who are required to work on a public holiday will be paid at double time. [31] The Award at sub clause 22.2(e) provides that all work performed by an employee on a public holiday is to be paid at the rate of 250% of the relevant minimum wage. The Commission requested correspondence outlining how employees are better off overall given that the penalty paid to an employee who works on a public holiday is less than the Award. [32] The Applicant submits that the only sections of the workforce that are required to work on public holidays are the Mobile Road Safety Camera Operators and Operations Support Officers. The Applicant provided fortnightly periods where public holidays have occurred and employees have worked those days. The comparisons provided demonstrate that employees are better off overall under the Agreement. 4

5 [2014] FWCA 1387 Annual leave loading [33] In its correspondence dated 13 January 2014, the CPSU raised a concern that the Agreement does not provide an entitlement to annual leave loading. The Applicant submits that the annual leave loading is incorporated into the minimum salaries at clause 15 of the Agreement and on average the salaries are 36 per cent better off when compared to the Award classification levels. Undertaking [34] Upon request from the Commission, an undertaking with respect to clause 37 - Grievance and dispute settlement procedure, applying to any disputes that arise under the National Employment Standards, has been provided by the Applicant. [35] This undertaking is taken to be a term of the Agreement. A copy of the undertaking is attached at Annexure A. [36] I have sought the views of the bargaining representatives, in respect of the undertaking, pursuant to s.190(4) of the Act. The bargaining representatives have not advised of any concerns with the undertaking provided. [37] Following the conference held and upon review of the correspondence, calculations and undertaking provided, I am satisfied that employees are better off overall under the Agreement. [38] The Agreement covers employees who are employed in the state of Victoria in the job classifications set out in the Agreement. I am satisfied that pursuant to s.186(3a) of the Act, this group is fairly chosen as being operationally or organisationally distinct. [39] I am satisfied that each of the requirements of ss.187 and 188 of the Act as are relevant to the application for approval have been met. [40] The ASU and the CPSU being bargaining representatives for the Agreement have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations. [41] The Agreement is approved. In accordance with s.54(1) the Agreement will operate from 5 March The nominal expiry date of the Agreement is 31 October COMMISSIONER 5

6 [2014] FWCA 1387 Annexure A Bringing service to life 15 January 2014 Commissioner Bull Fair Work Commission Level S, Terrace Tower 80 William Street East Sydney, NSW 2011 serco - Serco Traffic Camera Services (Vic) Ply ltd GPO Box 4726 Melbourne VIC 3001 Australia leve119, 535 Bourke Street Melbourne VIC 3000 Australia T F Dear Commissioner Bull, AG2013/ Application for approval of the Serco Traffic Camera Services agrees to the following undertaking for the approval of the Serco Traffic Camera Services Employment Agreement 2013 Yours sincerely, With respect to clause 37 of the, the Dispute Settlement Procedure will apply to any disputes that arise in relation to the National Employment Standards as per s 186(6)(a)(ii) of the Fair Work Act Simon Guy General Manager Serco Traffic Camera Services Serco Global Services Ply Ltd ACN Registered office: Level1 0, 90 Arthur Street North Sydney NSVV 2060 Australia SERGO IN CONFIDENCE Printed by authority of the Commonwealth Government Printer <Price code G, AE PR548157> 6

7 . Bringing service to life serco ~ Serco Traffic Camera Services Employment Agreement 2013 Page 1 of21 I!

8 Subject About the Agreement Title Scope & application Parties Period of operation No further claims Anti-discrimination Definitions Objectives of Agreement Flexibility term Employment Types of employment Contract of employment Ending employment Redundancy Change of service provider ARRANGEMENT Clause number Job Classifications, Remuneration & Related Matters Job classifications and minimum salaries Payment of salaries Superannuation Higher duties allowance Meal allowance Accident make-up pay Reimbursement of expenses Hours of work Leave Ordinary hours of work- Mobile Road Safety Camera Operators Ordinary hours of work- Evidence Management ("Evidence") employees Ordinary hours of work- Support Operations Centre ("SOC") employees Shift work Overtime Meal breaks, rest breaks, minimum hours or payment Annual leave Public holidays Personal leave Compassionate leave Parental leave Community service leave Long service leave Study leave Other leave Grievances and Disputes Resolution Grievances & dispute settlement procedure Consultation term Signatures of the Parties Page2of21

9 About the Agreement 1. Title This Agreement is to be known as the "" and is made in accordance with the Fair Work Act 2009 (Cth.) ("FW Act"). 2. Scope & application (a) This Agreement applies to all persons employed by Serco Traffic Camera Services (Vic) Pty. Ltd. ("the Company") in the State of Victoria who are engaged in the job classifications set out in clause 15 hereof. (b) This Agreement operates to the exclusion of any Federal or State award(s) and supersedes any other certified or lodged workplace agreements. 3. Parties The parties to this Agreement are: (a) Serco Traffic Camera Services (Vic) Pty. Ltd.; (b) Employees of the Company whose employment is within the scope and application of this Agreement. (c) Community and Public Sector Union ("CPSU" or "union"); and (d) The Australian Services Union ("ASU" or "union"). 4. Period of operation This Agreement is to operate from the date of Approval by Fair Work Commission ("FWC"). The nominal expiry date of this Agreement is 31 October No further claims (a) The parties agree that this Agreement provides certainty to employees as to their terms and conditions of employment and to the Company in terms of its cost structure and that they will not pursue extra claims during the period of operation of this Agreement. (b) This Agreement covers all matters or claims regarding the employment of the employees which could otherwise be the subject of protected action pursuant to the FW Act; and (c) The parties to this Agreement will not engage in protected action pursuant to the FW Act in relation to the performance of any work covered by this Agreement. 6. Anti-discrimination The parties agree that:- (a) It is their intention to respect and value the diversity of the work force by helping to prevent and eliminate discrimination on the basis of race, colour, sex, sexual preference, age, physical or mental disability, marital status, family responsibilities, pregnancy, religion, political opinion, national extraction or social origin. (b) Any dispute concerning these matters and their operation will be progressed initially under the grievances and disputes resolution procedure in clause 37 hereof. Page 3of21

10 7. Definitions "Agreement" "ASU" or "union" "Company" or "Serco" "CPSU" or "union" "employee" "FW Act" "FWC" "immediate family" "LSLAct" "new employee" "pro rata basis" "serious misconduct" "Traffic Camera Services Agreement" "transition employee" means the. means the Australian Services Union. means Serco Traffic Camera Services (Vic) Pty. Ltd. [ACN ]. means the Community and Public Sector Union means an employee of the Company whose job classification is within the scope and application of this Agreement. means the Fair Work Act 2009 (Cth) means Fair Work Commission includes the employee's spouse; and a child, ex-nuptial child, stepchild, adopted child, ex-foster child, parent, grandparent, grandchild or sibling of the employee or employee's spouse. The word 'spouse' includes a person who lives with the employee as a de-facto spouse. means the Long Service Leave Act 1992 (Vic). means an employee who was not a current employee of Tenix Solutions Pty. Ltd. at the date Serco assumed management of the TCS contract. [ie. an employee other than a transition employee]. means in proportion to the number of hours a part time employee is engaged to work per week divided by 38. means- (a) wilful or deliberate behaviour by an employee that is inconsistent with the continuation of the contract of employment ; and (b) conduct that causes imminent and serious risk to; (i) the health or safety of a person; or (ii) the reputation, viability or profitability of the Company's business. (c) conduct that is serious misconduct includes an employee, in the course of the employee's employment engaging in: (i) theft; or (ii) fraud; or (iii) assault; or (iv) the employee being intoxicated at work; or (v) the employee refusing to carry out a lawful and reasonable instruction that is consistent with the employee's contract of employment. means the agreement between the Attorney General of the State of Victoria, the Minister for Police and Emergency Services of the State of Victoria and Serco Traffic Camera Services (Vic) Pty Ltd for the provision of traffic camera services. means an employee who was a current employee of Tenix Solutions Pty. Ltd. at the time of transition of the Traffic Camera Services Contract and who became an employee of Serco at the date that Serco assumed management of the TCS contract. Page4 of21

11 8. Objectives of Agreement The principal objectives of this Agreement are to: (a) Establish workplace arrangements, terms and conditions of employment that clearly support the provision of all Traffic Camera Services, including the operation and maintenance of the Traffic Camera System covered by the Traffic Camera Services Agreement.. (b) Encourage a collaborative and flexible work environment in which all employees have the opportunity to develop their experience and capabilities. (c) Facilitate regular and open communication between the parties. (d) Build trust and confidence in relationships between managers, employees and union officers. 9. Flexibility term (a) The Company and an employee covered by this Agreement may agree to make an individual flexibility arrangement to vary the effect of terms of the Agreement if: (i) the agreement deals with one or more of the following matters: arrangements about when work is performed; overtime rates; penalty rates; allowances; leave loading; and (ii) (iii) the arrangement meets the genuine needs of the company and employee in relation to one or more of the matters mentioned in paragraph (i); and the arrangement is genuinely agreed to by the company and employee. (b) The Company must ensure that the terms of the individual flexibility arrangement: (i) are about permitted matters under section 172 of the FW Act; and (ii) are not unlawful terms under section 194 of the FW Act; and (iii) result in the employee being better off overall than the employee would be if no arrangement was made. (c) The Company must ensure that the individual flexibility arrangement: (i) is in writing; and (ii) includes the name of the company and employee; and (iii) is signed by the company and employee and if the employee is under 18 years of age, signed by a parent or guardian of the employee; and (iv) includes details of: the terms of the enterprise agreement that will be varied by the arrangement; and how the arrangement will vary the effect of the terms; and how the employee will be better off overall in relation to the terms and conditions of his or her employment as a result of the arrangement; and (v) states the day on which the arrangement commences. (d) The Company must give the employee a copy of the individual flexibility arrangement within 14 days after it is agreed to. (e) The Company or employee may terminate the individual flexibility arrangement: (i) by giving no less than 28 days written notice to the other party to the arrangement; or (ii) if the company and employee agree in writing, at any time. Page 5 of21

12 Employment 10. Types of employment (a) Employment may be full time, part time, specified term or casual. (b) Subject to clauses 22, 23, and 24 hereof, a full time employee is one who is engaged as such and who works an average of 38 ordinary hours per week, or an average of 76 hours per fortnight, or 152 ordinary hours in a 4 week period. (c) A part time employee is one who is engaged as such and who works an average of less than 38 ordinary hours per week or 152 hours in a 4 week period. A part time employee will be paid an ordinary time hourly rate of pay based on the weekly rate of pay for the job classification level in which he or she is engaged to perform work. [ie. weekly rate of pay for the job classification level divided by 38 = hourly rate of pay]. A part time employee is entitled to all provisions of this Agreement on a pro rata basis in accordance with the number of ordinary hours per week the employee is engaged to work. (d) A specified term employee is one who is engaged as such for a specified period of time, or for a particular task or project. A specified term employee may be full time or part time. The provisions of this Agreement apply to a specified term employee except for clause 13- Redundancy. With respect to parental leave, a specified term employee's employment ends at the specified date. {e) A casual employee is an employee engaged as such who is employed by the hour with a minimum engagement of 3 hours. Casual employment is employment by the hour and may be regular, irregular, scheduled, unscheduled, for a minimum number of hours each week or for a full week. There is no limit to the number of engagements or length of time an employee is employed as a casual employee. Nevertheless, a casual employee is to be employed or paid for a minimum of 3 hours work on each engagement. A casual employee will be paid an ordinary time hourly rate of pay based on the weekly rate of pay for the job classification level in which he or she is engaged to perform work, plus a loading of 20%. [ie. weekly rate of pay for the job classification level divided by % = hourly rate of pay]. The provisions of this Agreement apply to casual employees except clauses and sub clauses 1 O{b){c){d)- Types of Employment, 12{a){b)- Ending Employment, 13- Redundancy, 14- Change of Service Provider, 19- Meal Allowance, 20- Accident Make-up Pay, 26- Overtime, 28- Annual Leave, 29(a)(b){c){d){e){n{i)- Public Holidays {paid time off), 30- Personal Leave, 31 -Paid Compassionate Leave, 32- Paid Parental Leave and 33{a){b)- Long Service Leave (except as provided in the LSL Act). 11. Contract of employment (a) Before commencing employment, each employee will be provided with a letter of engagement by the Company, which amongst other things will set out employees' employment type, job classification, rate of pay, commencing hours of work (which may vary from time to time), commencing date of employment, qualifying or probationary period- which for full time and part time employees may be a period of up to 6 months. (b) Each employee shall be provided with a copy of this Agreement or provided with ready access to a copy of this Agreement. (c) In recognition of the operational and effectiveness requirements of the Company and to create more varied and interesting work for employees, it is a condition of employment subject to appropriate training and competency, that each employee may be available to work as required on any work within his/her skill, competence and training and that each employee shall acquire the skills and learn any other post as directed and shall provide instruction and/or training as appropriate to another employee as required. Page 6 of21

13 (d) Employee identification and police records. Employees must undergo a probity check prior to commencing with the Company and complete all necessary forms and authorisations to enable the checking and release of Police records, for the sole purpose of administering the Traffic Camera Services Agreement. In addition, employees must provide such information to the Company at any time during their employment as may be requested to enable the Company to meet the requirements of the Department of Justice Victoria and or the Assistant Commissioner of Police. (e) Employee conduct. It is expected that an employee will devote his/her time and attention to the performance of his/her responsibilities and endeavour to the best of their ability to promote the interests of the Company and will not engage in any other employment or activity that conflicts with the interests of the Company. Further, employees must at all times conduct themselves and perform their functions in a manner which is appropriate for an employee engaged in the infringement issuing and processing business. (f) Confidentiality. It is a condition of employment that an employee will not disclose nor use at any time either during employment or thereafter, any policy, practice, procedure, client information, supplier information, trade secret, financial, business, confidential or other data belonging to or concerning the business operations or affairs of or otherwise relating to the Company or any associated companies, their customers, and other business organisations acquired in the course of employment with the Company without first obtaining the Company's written consent to such disclosure, except such disclosure as may otherwise be specifically required or permitted by the Company, required by law or unless such information has become public knowledge through no action by employees or employee representatives. Further, employees agree that during employment with the Company to signing a Confidentiality Agreement, should such a requirement exist. (g) Return of documents and equipment. Upon termination of your employment employees must return to the Company or its authorised representative all policies, procedures, plans, statistics, documents, records, data, computer tapes, discs or other data capture devices, computer passwords, employee identification passes, papers or equipment in their possession or control which relate in any way to the business or affairs of the Company or any related company, or belongs to the Company. Employees are not entitled to retain any equipment or a copy of any information or document referred to in this clause. (h) Intellectual property. If during the term of an employee's employment, an employee or an employee and the Company jointly, formulate, develop or construct any product, process, formula or invention related to the Company's business, all rights, interest and title to such products, processes, formulas or inventions shall vest in the Company including without limitation any rights to any applications in relation to a product, process, formula or invention which an employee may file in the Commonwealth of Australia or elsewhere for a period of 2 years after the termination of an employee's employment with the Company in respect of any product, process, formula or inventions. It is further agreed that employees will promptly inform the Company in writing of any and all such products, processes, formulas or inventions. (i) Stand down. The Company may deduct payment of salary for any part of a day during which an employee cannot usefully be employed because of any strike, breakdown of equipment or any stoppage of work for any cause for which the Company cannot reasonably be held responsible provided that no such action may occur until the Company has used all opportunities to engage the employee on other useful work. Any stand down does not break the continuity of employment of the employee for the purpose of any entitlement. 12. Ending employment (a) During an employee's qualifying period, either the employee or the Company may terminate the employee's employment by giving 1 weeks notice, or by the Company without notice by paying 1 week's ordinary time pay in lieu of notice. Page 7 of21

14 (b) After the qualifying period has ended, an employee's employment (other than a casual employee) may be terminated either by the employee or the Company by giving the required period of notice, or by the Company without notice by payment of ordinary time salary in lieu of notice. The required periods of notice are set out in the table below. Period of continuous service with the Company Required period of notice by Required period Company of notice by s 45years > 45years employee Not more than 1 year 2weeks 2weeks 2weeks More than 1 year 4weeks 4 weeks 4 weeks More than 2 years 4weeks 5 weeks 4 weeks (c) When either an employee or the Company has given notice of termination of an employee's employment, the Company may require an employee to: (i) not perform any work for it; (ii) not attend the Company's places of business; or (iii) perform only those duties which the Company specifies. (d) The employment of a casual employee may be terminated by either the employee or the Company by giving 3 hours' notice, or by the Company by paying 3 hours' pay in lieu of notice. (e) In addition, the Company has the right to terminate an employee's employment without notice for serious misconduct or serious or persistent breach of the employee's terms or conditions of employment, and in such case the employee's salary and other entitlements will be paid up to the time of termination only. m If an employee is absent from work without authorisation for a period of 5 consecutive rostered or working days without notifying the Company or without the consent of the Company, the employee will be deemed to have abandoned his/her employment. In such case an employee will be deemed to have resigned without notice effective from his/her last day of work, last day of approved leave or last day of authorised absence whichever is the later, and his/her entitlements on termination will be calculated accordingly. 13. Redundancy (a) Where the Company has made a definite decision that the Company no longer requires the job an employee has been doing to be done by anyone and that decision may lead to termination of employment, the Company will have discussions as soon as practicable with the employee(s) directly affected and if requested by an employee, with the nominated representative of that employee. Discussions will include: the reasons for the proposed termination(s); measures to avoid or minimise the terminations including consideration of suitable alternative employment.; and measures to mitigate the adverse effects of any terminations on the employees concerned. (b) For the purposes of such discussion the Company must as soon as practicable provide in writing to the employees concerned, all relevant information about the proposed terminations, including; the reasons for the proposed terminations; the number of employees likely to be affected; the number of employees normally employed; and the period over which the terminations are likely to take place. The Company is not required to disclose confidential information the disclosure of which when looked at objectively, would be contrary to Serco's interests. Page8of21

15 (c) In the event of terminations due to redundancy, the following scale of severance payments is to apply. Period of continuous service with the Company Less than 1 year Severance pay [weeks of ordinary time pay] nil 1 year and up to the completion of 2 years 4 2 years and up to the completion of 3 years 6 3 years and up to the completion of 4 years 7 4 years and up to the completion of 5 years 8 5 years and up to the completion of 6 years 10 6 years and up to the completion of 7 years 11 7 years and up to the completion of 8 years 13 8 years and up to the completion of 9 years 14 9 years and up to the completion of 10 years 16 More than 1 0 years 12 (d) The severance/redundancy payments set out in clause 13( c) above are in addition to the required period of notice or pay in lieu of notice prescribed in clause 12(b) hereof. (e) An employee whose position is redundant and who secures employment with another employer during the notice period, may leave the Company at any time during the notice period without any reduction in severance pay entitlements. (D The provisions of this clause are not applicable where a transmission of business occurs or employment is offered by the new employer on terms and conditions that are no less favourable, considered on an overall basis, than the terms and conditions applicable to the employee at the time of ceasing employment with the Company. 14. Change of service provider In the event that the Company's contract is terminated by the Department of Justice Victoria, or the contract is not renewed, or the business is otherwise moved from the Company to another employer ("other employer") then the following arrangements will apply. (a) Where an employee accepts an offer of employment with the other employer on terms and conditions that are no less favourable, considered on an overall basis, than the terms and conditions applicable to the employee at the time of ceasing employment with the Company; and the other employer recognises the employee's period of employment with the Company as the employee's service for the purpose of calculating entitlements; or (b) Where an employee rejects an offer of employment with the other employer which contains terms and conditions that are no less favourable, considered on an overall basis, than the terms and conditions applicable to the employee at the time of ceasing employment with the Company; and which recognises the employee's period of employment with the Company as service for the purpose of calculating entitlements; then the Company will not be under any obligation to make redundancy payment to the employee upon termination of his/her employment with the Company. (c) Suitable alternative employment shall include work of the same or higher classification or failing that, of no less rate of pay, similar hours and location that does not require significant additional travel, and a position which does not unreasonably disrupt the family responsibilities of the employee concerned. Serco Traffic Camera Services Employment Agreement2013 Page 9 of21

16 Job Classifications, Remuneration and Related Matters 15. Job classifications and minimum salaries (a) The job classifications within the scope and application of this Agreement and minimum salaries that apply during the period of operation of this Agreement are set out in the following table. Job classifications Salary Rates of pay Rates of pay groups & from 25/11/2013 from 1/11/2014 levels [increase of 3.5%] [increase of 3.0%] Annual Hourly Annual Hourly Support Operations Centre Team Leader [SOC] Group 5 Fixed Camera Team Leader [SOC] -C $65,272 $33.03 $67,230 $34.02 Technician- Camera [SOC] -B $62,825 $31.79 $64,709 $32.75 Technician- Vehicle [SOC] - A (Base level) $60,377 $30.56 $62,188 $31.47 Evidence Management Team Leader [Evidence] Fixed Camera Operator [SOC] Group 4 Operations Support Officer [SOC] -C $57,953 $29.33 $59,691 $30.21 Operations Administrator [SOC] -B $55,645 $28.16 $57,314 $29.01 Assistant Vehicle Technician [SOC] - A (Base level) $53,476 $27.06 $55,081 $27.87 Senior Mobile Road Safety Camera Operator Senior Evidence Assessment Officer [Evidence] Senior Film Registry Officer [Evidence] Evidence Q A Specialist [Evidence] Performance & Adjudication Analyst [Evidence] Assurance & Compliance Officer [Evidence] Compliance Officer [Evidence] Mobile Road Safety Camera Operator Group 3 Evidence Assessment Officer [Evidence] -C $51,523 $26.07 $53,069 $26.86 Administration Officer [Evidence] -B $49,592 $25.10 $51,080 $25.85 Technical Support Officer- Mobile [SOC] - A (Base level) $47,660 $24.12 $49,089 $24.84 Fixed Digital Support Officer [Evidence] Film Registry Officer [Evidence] Mobile Camera Operator- entry level Group 2 Evidence Processing Officer [Evidence] -C $46,607 $23.59 $48,005 $24.29 Technical Support Officer- Fixed Camera [SOC] -B $44,859 $22.70 $46,205 $23.38 Scanning Officer [Evidence] - A (Base level) $43,110 $21.82 $44,403 $22.47 Trainee Group 1 -C $42,679 $21.60 $43,960 $ B $41,078 $20.79 $42,310 $ A (Base level) $39,478 $19.98 $40,662 $20.58 Notes: The hourly rate is the annual rate divided by 52 (weekly rate) and divided again by 38. Additional job classifications may be added as required to facilitate business requirements. Rates of pay from 1/11/2015 [increase of 2.5%] Annual Hourly $68,911 $34.87 $66,327 $33.57 $63,743 $32.26 $61,184 $30.96 $58,747 $29.73 $56,458 $28.57 $54,396 $27.53 $52,357 $26.50 $50,317 $25.46 $49,205 $24.90 $47,360 $23.97 $45,513 $23.03 $45,059 $22.80 $43,368 $21.95 $41,679 $21.09 (b) Increases in salary rates. The minimum salaries structure set out in clause 15(a) above, represents an initial increase to employees of 3.5% effective from the first full pay period to commence on or after 25 November There is to be a further increase of 3% effective from the first full pay period to commence on or after 1 November 2014, and a further increase of 2.5% effective from the first full pay period to commence on or after 1 November Page 10of21

17 16. Payment of salaries Payment of salaries is to be made fortnightly by electronic transfer of funds (EFT} into an account nominated by the employee with a bank or other recognised financial institution, provided that such financial institution is capable of receiving employees' salaries' deposits. 17. Superannuation (a) The Company will make contributions to an eligible choice superannuation fund (complying fund) on behalf of employees in accordance with the provisions of the Superannuation Guarantee (Administration) Act 1992 (Cth). (b) In the event that an employee does not exercise his/her right to choose a superannuation fund or if he/she fails to do so within the prescribed time, the Company will make contributions on the employee's behalf to the Serco Australia Superannuation Fund (default fund). (c) An employee may direct the Company to make additional superannuation contributions on an after tax basis or on a pre-tax basis utilising a lawful salary sacrifice arrangement. 18. Higher Duties Allowance An allowance for the performance of higher duties is payable where the employee is temporarily assigned a position of a higher classification level. This allowance will be payable for assignments of a minimum of 5 consecutive working days. Payment for higher duties will be made at the minimum rate of the higher band or a 10% allowance on the employee's rate of pay, whichever is less. 19. Meal Allowance (a) Subject to clause 19(b) where an employee is called into work with less than 12 hours' notice, he/she will be entitled to a meal allowance of $ (b) A meal allowance is not payable under the following circumstances: (i) where a meal is provided by the Company; or (ii) where an employee is working additional hours or overtime at the end of a usual day or rostered shift. 20. Accident make-up pay (a) An employee who is absent from duty as a result of a work related illness or injury and is in receipt of weekly payments under Workcover, is entitled to leave with pay. For the purpose of this clause, leave with pay means payment by the Company to make up the difference between Workcover payments received for loss of earnings and the employee's ordinary pay. (b) Leave with pay in accordance with this clause ceases and the employee must be granted leave without pay when: (i) the employee is absent from duty for a continuous period of 52 weeks or an aggregate period of working days (including public holidays); or (ii) the employee is paid a disability benefit under a superannuation fund or under a similar provision in any other fund or insurance arrangement to which the Company makes contributions or pays a premium. 21. Reimbursement of expenses (a) Where the Company requires an employee in the course of his or her duties to be absent overnight or part of the day, the employee will be eligible to be reimbursed for any reasonable personal expenses, or receive a short-term travel allowance to cover non accommodation related expenses as determined by the Company. The employee will obtain the approval of the Company prior to incurring the expense. (b) A Mobile Road Safety Camera Operator shall be paid $20.77 (gross) per fortnight towards the cost of a mobile phone and internet expenses. This does not apply to an employee who is provided by the Company with a mobile phone. Page 11 of21

18 Hours of Work 22. Ordinary hours of work- Mobile Road Safety Camera Operators [MRSCOs] (a) The ordinary hours of work for a full time employee will be an average of 76 hours per fortnight over a cycle of work periods to be determined by the Company. (b) The ordinary hours of work for a part time employee will be an average of less than 76 per fortnight as determined by the Company. (c) The span of ordinary hours is between 7:00am and 7:00pm, irrespective of the day of the week, as directed by the Company. Any hours worked outside of this span will attract a 50% loading. (d) Employees working pursuant to this clause shall not be considered to be working shift work. Irregular work patterns, which are a feature of the business conducted by Serco Traffic Camera Services are the result of contractual arrangements between the Victorian Government and the Company and are acknowledged by the parties to this Agreement as not constituting shift work. (e) Flexible working hours arrangements, (eg., including a 19 day month or variations thereon may be introduced by the Company and a majority of the employees or a majority of a section of employees. (n From time to time a Mobile Road Safety Camera Operator will be required by the Traffic Camera Office division of the Victoria Police and the Company as part of his/her duties to attend court in relation to the operation of mobile road safety camera sessions. In these situations a minimum of 7.6 ordinary hours will be payable. 23. Ordinary hours of work- Evidence Management [Evidence] (a) The ordinary hours of work for a full time employee will be an average of 76 hours per fortnight. (b) The ordinary hours of work shall be worked within a span of hours between 5.30 am and 8.30 pm, Monday to Friday inclusive, as directed by the Company, subject to clause 23(c). (c) The usual daily commencing and finishing times of ordinary hours of work and days upon which ordinary hours of work may be worked, may be altered as to all or a section of the Company's employees by mutual agreement between the Company and employees or section of employees. In the absence of agreement the Company shall give 14 days notice of major changes to hours of work arrangements. (d) Flexible working hours arrangements, (eg., including a 19 day month or variations thereon may be introduced by the Company and a majority of the employees or a majority of a section of employees. The current arrangements of working a 19 day /4 week period ("19 day month") are confirmed and will continue for the period of operation of this Agreement. 24. Ordinary hours of work- Support Operation Centre ("SOC"} employees (a) The ordinary hours of work for a full time employee will be an average of 76 hours per fortnight. (b) The ordinary hours of work shall be worked, as directed by the Company, within a span of hours between: (i) 5:30 am and 8:00 pm, irrespective of the day of the week for Operations Support Officers; and, (ii) 5:30 am and 8:30 pm, Monday to Friday inclusive, for other SOC employees. (c) The usual daily commencing and finishing times of ordinary hours of work and days upon which ordinary hours of work may be worked, may be altered as to all or a section of the Company's employees by mutual agreement between the Company and employees or section of employees. In the absence of agreement the Company shall give 14 days notice of major changes to hours of work arrangements. Page 12 of21

19 (d) Flexible working hours arrangements, (eg., including a 19 day month or variations thereod may be introduced by the Company and a majority of the employees or a majority of a section of employees. The current arrangements of working a 19 day /4 week period ("19 day month") are confirmed and will continue for the period of operation of this Agreement. 25. Shift work Subject to clauses 22, 23, and 24 hereof, shift work means roster periods or ordinary time work which may be fixed, alternating or rotating and the start or finish times fall outside the ordinary hours of day work. Employees working shift work shall be paid at the ordinary rate of pay plus 15%. 26. Overtime (a) Duty which a full time employee is required and authorised to perform in excess of the ordinary hours determined under clauses 22, 23 and 24 and not provided for in the general arrangement of hours will be counted as overtime. The Company may require an employee to work reasonable overtime. (b) An employee working approved overtime, will be granted either time off at the rate of one hour for each additional hour worked, with no loss of pay, or payment for the hours worked at a rate of time and one half. The Company reserves the right to pay employees for overtime worked rather than grant time in lieu. (c) A part time employee will be entitled to overtime based on the ordinary hours applying provided that in no case will overtime be payable until at least 76 hours have been worked in any pay fortnight. (e) Penalty rates will be non-cumulative. That is; where more than one penalty rate could apply only the higher of the rates will be paid. 27. Meal breaks, rest breaks, minimum hours or payment (a) An employee is entitled to an unpaid meal break of not less than 30 minutes. Meal breaks are to be taken by arrangement between an employee and his/her Team Leader or Manager at or prior to an employee completing 5 hours continuous work. (b) Two paid rest breaks of 10 minutes each are available each day; morning and afternoon. (c) Where an employee is requested by his or her Team Leader or Manager to leave his or her home to perform duties associated with his or her employment, he or she shall be paid a minimum of four hours at ordinary rates. Page 13of21

20 Leave 28. Annual leave (a) A full time employee is entitled to 4 weeks paid annual per annum. Annual leave accrues progressively during a year of employment and accumulates from year to year. Where an employee is a shift worker (as defined) they shall be entitled to an extra weeks annual leave for each completed 12 months of service, on a pro-rata basis. (b) A part time employee is entitled to annual leave on a pro rata basis in accordance with the number of hours per week the employee is engaged to work. (c) Annual leave is to be taken at dates agreed between an employee and the Company as soon as practicable after an employee's entitlement to leave becomes due. An employee is able to take annual leave as it accrues, subject to the needs of the business. (d) In circumstances where agreement as to the date(s) of taking leave cannot be reached, the Company and/or the employee must give at least 1 months notice of the intention to take or give annual leave. The Company will endeavour to give employees notice of the requirement to take leave as far in advance as possible. (e) Annual leave may be taken in one period or in any periods by agreement between an employee and the Company. (g) Annual leave loading of 17.5% of the ordinary rate of pay for 4 weeks is incorporated into an employees' base salary as set out in clause 15( a) of this Agreement. (g) Entitlement to cash out part of annual leave. An employee and the Company may agree to an employee cashing out part of his/her annual leave, provided that: (i) (ii) paid annual leave must not be cashed out if the cashing out would result in the employee's remaining accrued leave entitlement to paid annual leave being less than 4 weeks; and each cashing out of a particular amount of paid annual leave must be by a separate agreement in writing between the employee and the company 29. Public holidays (a) An employee will be entitled to the following paid holidays where rostered to work on that day: New Year's Day Australia Day Labour Day Good Friday Easter Saturday Easter Monday Anzac Day Queen's Birthday Melbourne Cup Day Christmas Day Boxing Day {b) When New Year's Day, Australia Day or Christmas Day fall on a Saturday or Sunday, a holiday shall be observed on the both the actual day and the following Monday. Page 14of21

21 (c) When Boxing Day falls on a Saturday, a holiday shall be observed on the both the actual day and the following Monday. When Boxing Day falls on a Sunday, a holiday shall be observed on the actual day and the following Tuesday. (d) Where public holidays are declared or prescribed on days other than those set out in clause 29(a) above, those days will constitute additional holidays for the purpose of this Agreement. (e) In non metropolitan municipal districts where Melbourne Cup Day is not observed as a public holiday it will be substituted by a day proclaimed as a public holiday in that municipality. Where no such local public holiday is proclaimed, one day's special leave with pay will be granted in lieu and be taken at a time agreed between the employee and the Company. (D The Company and the employee may agree in writing to substitute another day for any public holiday prescribed in this clause. (g) Employees (including casual employees) who are required to work on Christmas Day, Good Friday, or New Year's Day will be paid at triple time. Triple time will only be applied to the actual days and double time will apply to substitute or additional days. (h) Employees (including casual employees) who are required to work on any of the other Public Holidays referred to in clause 29(a) hereof, will be paid at double time. (i) An irregular full time employee who is not rostered to work on a public holiday set out in clause 29(a), will be entitled to paid ordinary time for the public holiday. i.e., 7.6 ordinary hours. When a substitute day is applicable, a single payment for 7.6 ordinary hours will be made if the irregular full time employee is not rostered to work on both the actual and substitute day. 30. Personal leave (a) The provisions of this clause apply to full time, specified term and part time employees, but do not apply to casual employees. (b) For each year of continuous employment with the Company, an employee is entitled to 12 days of paid personal/carers' leave. An employee's entitlement to paid personal/carers' leave accrues progressively during a year of employment and accumulates from year to year. (c) A part time employee will accrue personal leave on a pro rata basis. (d) An employee may use any of his/her available balance of personal leave as paid carer's leave. (e) Paid personal leave is available to an employee when he or she is absent due to: personal illness or injury (sick leave); or for the purposes of caring for an immediate family or household member that is sick and requires the employee's care and support (carer's leave); or (D The entitlement to carer's leave is subject to the person in respect of whom the leave is taken being either: a member of the employee's immediate family; or a member of the employee's household (g) Employee must give notice. As soon as practicable and within 3 hours of the commencement of such absence, the employee is to inform the Company of his or her inability to attend for duty. The notice must include an estimate of how long the employee expects to be away from work. Page 15 of21

22 (h) Evidence supporting claim. (i) (ii) In any year, 5 days (38 hours) sick leave may be taken without requirement for the employee to provide evidence supporting a claim for sick leave. For sick leave claimed in excess of 5 days in any year, or if sick leave is taken on a Monday, Friday, or following a Public Holiday, the employee must, if required by the Company, establish by production of a medical certificate from a registered medical practitioner that the employee was unable to work because of injury or personal illness. If it is not reasonably practicable for the employee to give a medical certificate, then a statutory declaration made by the employee may be required. (i) (j) Carer's leave. An employee other than a casual, is entitled to use any available balance of personal leave each year to care for members of his or her immediate family or household who are sick and require care and support. This entitlement is subject to the employee being responsible for the care and support of the person concerned. In normal circumstances an employee is not entitled to take carer's leave where another person has taken leave to care for the same person. Notice required. Before taking carer's leave, an employee must give notice to the Company before his or her next rostered starting time, unless he or she has a good reason for not doing so. The notice must include: the name of the person requiring care and support and his or her relationship to the employee; the estimated length of absence. If it is not practicable for the employee to give prior notice of absence, the employee must notify the Company by telephone at the first opportunity. (k) Evidence supporting claim. The employee must, if required by the Company, establish by production of a medical certificate from a registered medical practitioner, the illness of the person concerned and that the illness is such as to require care by another. If it is not reasonably practicable for the employee to give a medical certificate, then a statutory declaration made by the employee may be required. (I) Unpaid leave. An employee may take up to 2 days unpaid carer's leave, or further unpaid carer's leave by agreement with the Company. (m) Transition employees- special arrangements. (i) A transition employee will receive an annual credit of personal leave on the next anniversary of their employment to fall on or after 31 October To avoid doubt, this will be a once-off annual credit which will be made at an employee's anniversary date during the period 31 October 2007 to 30 October (ii) On and from the subsequent anniversary of an employee's employment (ie. an anniversary occurring after 30 October 2008) personal leave will accrue on a pro rata basis in accordance with clause 29(b) hereof. (iii) At the time of changing over to accumulation of leave on a pro rata basis, any employee who is absent due to illness or injury and who has exhausted his/her personal leave, may apply to have their pro rata leave entitlement credited in advance as a bridging arrangement. 31. Compassionate leave (a) Compassionate leave is paid leave taken by an employee for the purposes of spending time with a person who: (i) is a member of the employee's immediate family or a member of the employee's household; and (ii) has a personal illness, or injury, that poses a serious threat to his or her life; or (iii) after the death of a member of the employee's immediate family or a member of the employee's household. (b) Subject to this clause, an employee is entitled to a period of 3 days of compassionate leave for each occasion when a member of the employee's immediate family or a member of the employee's household: (i) contracts or develops a personal illness that poses a serious threat to his or her life; or Page 16 of21

23 (ii) sustains a personal injury that poses a serious threat to his or her life; or (iii) dies. (c) Compassionate leave may be taken in a single unbroken period of 3 days or two separate periods or otherwise as agreed with the Company. (d) The rate of pay for compassionate leave is the amount that an employee would reasonably have been expected to be paid had he/she worked during the period (ie. ordinary rostered hours at their respective classification). (e) However, the employee is entitled to compassionate leave only if the employee gives the Company any evidence that the Company reasonably requires of the illness, injury or death. 32. Parental leave (a) Maternity leave. An employee (other than an employee who is on leave without pay) who has a minimum of 12 months continuous service will, subject to the production of a medical certificate stating : that the employee is pregnant; and the expected date of delivery; will be entitled to 12 weeks leave with pay. Up to 52 weeks leave is available under this provision, of which the 12 weeks paid leave may be taken at full pay or alternatively, 24 weeks at half pay commencing: 6 weeks prior to the expected date of delivery; any time within that 6 week period elected by the employee provided that a medical practitioner certifies the employee's fitness to work; or where birth occurs earlier than 6 weeks prior to the expected date of delivery, the day on which the employee ceases duty as a result of the birth. (If the pregnancy terminates earlier than 20 weeks prior to the expected date of delivery, entitlement to leave under this clause ceases). The additional period of leave without pay of up to 40 weeks may include a period of annual and/or long service leave on full or half pay. (b) Paternity leave. An employee will be granted paternity leave on full pay for up to 1 week or for periods aggregating up to five working days, to care for the child and/or the mother of the child. The Company may require medical evidence and/or a statutory declaration that the employee is the father of and/or has accepted responsibility for the care of the child. Unless otherwise determined by the Company, leave granted under this clause will be taken in the period commencing one week before the expected date of birth of the child and concluding six weeks after the actual date of the birth of the child. An employee who is the primary care giver may be granted an additional period of leave without pay as will bring the aggregate leave granted under this clause to a period not exceeding 52 weeks. (c) Adoption leave. An employee who adopts a child will be entitled to the following leave, provided that 6 weeks notification is provided to the Company: (i) Primary Child Care Giver- 6 weeks leave with pay commencing from the date of placement of the child. An employee who is the primary care giver may be granted an additional period of leave without pay as will bring the aggregate leave granted under this clause to a period not exceeding 52 weeks. (ii) Secondary Child Care Giver- 1 week with pay commencing no later than 3 months after the date of placement of the child. (d) Right to request. An employee entitled to parental leave pursuant to the provisions of clause 32(a) hereof may request the Company to allow the employee: (i) to extend the period of unpaid parental leave provided for in clause 32(a) by a further continuous period of leave not exceeding 12 months;

24 (ii) to return from a period of parental leave on a part time basis until the child reaches school age; (iii) to assist the employee in reconciling work and parental responsibilities. (e) The Company shall consider the request having regard to the employee's circumstances and, provided the request is genuinely based on the employee's parental responsibilities, may refuse the request on reasonable grounds related to the effect on the workplace or the Company's business. Such grounds might include cost, lack of adequate replacement staff, loss of efficiency and the impact on customer service. (n Employee's request and Company's decision to be in writing. The employee's request and the Company's decision made under clauses 32(d)(ii) and 32(d)(iii) must be recorded in writing. (g) Request to return to work part-time. Where an employee wishes to make a request under clause 32(d)(iii) such a request must be made as soon as possible but no less than seven weeks prior to the date upon which the employee is due to return to work from parental leave. (h) Except for the provisions of this clause, in all other respects parental leave (maternity, paternity, adoption leave) is unpaid leave which is granted and arranged in accordance with the provisions of Chapter 2, Part 2-2, Division 5 of the FW Act. An employee will be entitled to parental leave in accordance with these provisions. (i) In the event that the Federal Government introduces a modified national paid parental leave scheme which provides more favourable conditions for employees than the conditions prescribed in this clause, the paid parental leave provisions in this clause will cease to operate effective from the date of introduction of the modified national paid parental leave scheme. 33. Community service leave An employee may be granted community service leave in the interest of public safety or in accordance with sections of the FW Act. An employee shall notify the Company as soon as possible of the date upon which the employee is required to attend such leave. Further the employee shall provide proof of attendance, the duration of such attendance and if applicable the amount received, if required by the Company. 34. Long service leave (a) Long service leave is arranged and paid in accordance with the provisions of the Long Service Leave Act 1992 (Victoria) "LSL Act". (b) Transition employees (as defined) who have completed 10 years continuous service ("Qualifying Period") with the Company will be entitled to paid leave based on: 3 months (13 weeks) leave for 10 years continuous service; pro rata entitlements after the first 1 0 year Qualifying Period. (c) Except for the entitlements and qualifying period set out in clause 34(b) above, in all other respects long service leave for transition employees will be arranged and paid in accordance with the provisions of the LSL Act. 35. Study leave The Company encourages employees to further their personal development and education. Applications for leave or other assistance to pursue a course of study will be considered by the Company based on the relevance of the course to an employee's current position or likely future progression. 36. Other leave Other leave may be granted, with or without pay, for other reasonable purposes at the discretion of the Company. Page 18 of21

25 I.. 1 Grievances and dispute resolution, consultation 37. Grievance and dispute settlement procedure (a) In the event of a grievance or dispute arising, in the first instance there will be an attempt to resolve the matter at the workplace by discussions between the employee or employees concerned and the relevant team leader, supervisor or manager. (b) If such discussions do not resolve the matter, then by discussions between the employee or employees concerned and more senior levels of management as appropriate and/or a Human Resources representative(s) will occur. (c) If the matter or dispute is unable to be resolved at the workplace and all agreed steps for resolving it have been taken, the dispute may be referred to the FWC for resolution by mediation and/or conciliation and, if necessary arbitration. If arbitration is necessary, the FWC may exercise the procedural powers in relation to hearings, witnesses, evidence and submissions which are necessary to make the arbitration effective. (d) Any dispute referred to the FWC under this clause should be dealt with by a member of the Commission agreed by the parties at the time or, in default of agreement, a member nominated by the President. (e) The decision of the FWC will bind the parties, subject to either party exercising a right of appeal. (n It is a term of this Agreement that while the dispute settlement procedure is being conducted work shall continue normally unless an employee has a reasonable concern about an imminent risk to his or her health or safety. (g) A party to the dispute may appoint another person, union officer, organisation or association to a company or represent them in relation to the dispute at any stage. 38. Consultation term (a) This term of the Agreement applies if the company has made a definite decision to introduce a major change to program, organisation, structure, or technology in relation to its business and the change is likely to have a significant effect on employees of the business. (b) The company must notify the relevant employees of the decision to introduce the major change. (c) The relevant employees may appoint a representative for the purposes of the procedures in this term. (d) If a relevant employee appoints, or relevant employees appoint a representative for the purposes of consultation; and the employee or employees advise the company of the identity of the representative, then the company must recognise the representative. (e) As soon as practicable after making its decision, the company must:- (i) discuss with the relevant employees: the introduction of the change; and the effect the change is likely to have on the employees; and measures the company is taking to avert or mitigate the adverse effect of the change on the employees. (ii) for the purposes of the discussion, provide in writing, to the relevant employees: all relevant information about the change including the nature of the change proposed; and information about the expected effects of the change on the employees; and any other matters likely to affect the employees. Page 19of21

26 (~ However, the Company is not required to disclose confidential or commercially sensitive information to the relevant employees or their representative. (g) The company must give prompt and genuine consideration to matters raised about the major change by the relevant employees. (h) If a term in elsewhere in this Agreement provides for a major change to program, organisation structure, technology or prescribes arrangements for cross deployment, multi skilling and or of determining staffing levels in relation to the company's business, the requirements set out in sub clauses (b), (c) (d) and (e) are taken not to apply. (i) In this term, a major change is likely to have a significant effect on employees if it results in: (i) the termination of the employment of employees; or (ii) major change to the composition, operation or size of the employer's workforce or to the skills required of employees; or (iii) the elimination or diminution of job opportunities (including opportunities for promotion or tenure); or (iv) the need to retrain employees; or (v) the need to relocate employees to another workplace; or (vi) the restructuring of jobs. (j) In this term, "relevant employees" means the employees who may be affected by the major change. Page 20 of21

27 Signatures of the Parties SIGNED for and on behalf of: Serco Traffic Camera Services (Vic) Pty. Ltd. [ACN ] Level19, 535 Bourke Street, Melbourne by its Managing Director Stuart Beaumont SIGNED for and on behalf of: Community and Public Sector Union Level2, Rosella Complex 6 Palmer Street Cremorne 3121 by its Branch Secretary./~... &-# Karen Batt DATED This l ~ day of f)e CeM fut 2013 SIGNED for and on behalf of: Australian Services Union Level1, 117 Capel Street North Melbourne 3051 by its Branch Secretary ~... S,s::::z.....:.:.:.:"" Ingrid Stitt DATEDThis \1~ dayof ~ 2013 Page 21 of21

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29 15 January 2014 Commissioner Bull Fair Work Commission Level 8, Terrace Tower 80 William Street East Sydney, NSW 2011 Serco Traffic Camera Services (Vic) Pty Ltd GPO Box 4726 Melbourne VIC 3001 Australia Level 19, 535 Bourke Street Melbourne VIC 3000 Australia T F Dear Commissioner Bull, AG2013/ Application for approval of the Serco Traffic Camera Services agrees to the following undertaking for the approval of the Serco Traffic Camera Services Employment Agreement 2013: Yours sincerely, With respect to clause 37 of the, the Dispute Settlement Procedure will apply to any disputes that arise in relation to the National Employment Standards as per s.186(6)(a)(ii) of the Fair Work Act Simon Guy General Manager Serco Traffic Camera Services Serco Global Services Pty Ltd ACN Registered office: Level 10, 90 Arthur Street North Sydney NSW 2060 Australia SERCO IN CONFIDENCE