From 1 July 2024, incorporated associations in Queensland must have a formal grievance procedure for dealing with internal disputes. Associations may adopt their own grievance procedure in their governing rules/constitution that satisfies the minimum criteria at section 47A of the Association Incorporation Act 1981 (Qld) (the Act). Associations that do not adopt their own grievance procedure will be deemed to have adopted the grievance procedure at Rule 12A of the Model Rules (Schedule 4 of the Act). Ahead of 1 July 2024, associations should consider the model grievance procedure, and determine whether adopting their own grievance procedure would be more suitable.
Key Takeaway Points:
- Incorporated associations in Queensland will be required to have formal grievance procedures for dealing with internal disputes from 1 July 2024.
- Associations have the option to adopt their own grievance procedure, passed by special resolution of members and inserted into the governing rules, or adopt the model procedure at Rule 12A of the Model Rules.
- The model grievance procedure imposes fairly strict time frames and Associations should consider ahead of the 1 July 2024 deadline whether adopting their own grievance procedure would be more suitable and plan ahead for the changes.
What is a grievance procedure?
A grievance procedure formalises the process by which an association resolves internal disputes and conflict. It details how a member can make a complaint, the timeframes by which complaints must be considered and resolved, and the steps an association must take if a dispute cannot be internally resolved.
How to adopt a grievance procedure
A grievance procedure can be adopted either in the association’s governing rules or imposed automatically by operation of the section 47A of the Associations Incorporation Act (to come into effect on 1 July 2024).
If an association wants to adopt their own grievance procedure, that grievance procedure will need to be passed by a special resolution of members and inserted into the association’s governing rules.
If an association does not want to adopt their own grievance procedure, the model grievance procedure will be automatically adopted on 1 July 2024 (no further action is required). The complete model grievance procedure can be found here.
What needs to be in a grievance procedure?
If an association adopts its own grievance procedure, section 47A of the Act imposes certain minimum requirements including that the grievance procedure must:
- allow a member to appoint any person to act on their behalf;
- give each party an opportunity to be heard;
- allow unbiased mediation if the dispute cannot initially be resolved; and
- ensure a decision-maker is unbiased if the grievance procedure allows a person to decide the outcome of the dispute.
Why adopt a different grievance procedure to the Model Rules?
The model grievance procedure in the model rules imposes fairly strict time frames (ie a timeframe of 14 days for the association and the aggrieved member to resolve the dispute before it can be further referred to mediation). Associations may wish to extend that period to allow more time to attempt a resolution before referring the dispute to a mediator. The association may also wish to impose more specific requirements around the appointment of a mediator (keeping in mind that the mediator must be unbiased).
How to prepare for 1 July 2024
Before 1 July 2024, associations should consider whether the model grievance procedure is suitable to their circumstances, or whether a more tailored procedure would be preferred.
If the association wishes to adopt its own grievance procedure, the association will need to plan ahead for any member resolutions that will need to be passed to incorporate the grievance procedure into their governing rules. There may also be further member engagement required to ensure that any proposed grievance procedure which differs from the model grievance procedure will be adopted by the members.
How we can help
We regularly assist incorporated associations in meeting their legal obligations. Should you have any queries regarding the model grievance procedure coming into effect on 1 July, or like our assistance with other matters relating to your incorporated association, please contact our Corporate Advisory and Governance experts.
