Workplace Governance - Fitness Industry

Submitted by sylvia.wong@up… on Wed, 06/24/2020 - 15:34

When you have secured employment within the Fitness Industry you will be expected to abide by a variety of stipulations such as legislation, codes of practice, and policies/procedures, that ensure consumers (customers/clients) receive high-quality advice and support. There are also other laws that protect your rights as an employee, these regulations must be followed by your employer/workplace. This broad collection of stipulations is known as Workplace Governance.

There are three levels of Government in Australia:

  • Federal - Responsible for developing national policy and legislation, providing national services such as Australia Post, protecting Australia's security and defence, and representing Australia overseas.

  • State/Territory - Responsible for state/territory policy and legislation and providing state/territory services such as police and state schools.

  • Local - Responsible for local council policy and regulation and providing local services such as garbage collection.

One of the main responsibilities of Government is to implement and administer pieces of legislation, known as Acts. Acts can either be administered at the Federal or the State Government level. Acts are further supported by Regulations and Industry Codes of Practice. At the workplace level, there are Codes of Conduct and Policies & Procedures which ensure that employees of individual workplaces conduct themselves in an appropriate manner and individual tasks are competently performed.

Pyramid shaped infographic showing how Acts, Regulations, Industry Codes of Practice, Workplace Code of Conduct and Policies & Procedures interrelate

 

  • Acts - Formal descriptions of laws (legislation) created by Parliament (Federal or State). Enforceable by the judicial system (police/courts).

  • Regulations - Specific guidelines on how to apply the laws contained in an Act. Not usually enforceable by law in their own right.

  • Industry Codes of Practice - Developed by industry associations. Best practice guidelines for the industry. Usually linked to membership or registration and may be audited.

  • Workplace Code of Conduct - Specific to individual workplaces. Outlines ethical work practices (professional ethics), values, accountability, standards of conduct and practice, disciplinary actions. Can also include the business Vision and Mission.

  • Policies and Procedures - Provides employees with guidelines on completing tasks.

Sub Topics

Fitness Industry personnel must abide by a range of legislative and regulatory requirements when undertaking their roles. These laws are usually related to consumer protection and cover issues such as:

  • Consumer Law / Protection. Consumers have certain rights. In a fitness context this includes membership contracts, including waivers and exclusion clauses, as well as the right to receive safe products and services. Refunds, exchanges, and repairs also fall under this category. The Australian Competition & Consumer Commission (ACCC) website provides more information on this topic.

  • Child protection if working with clients under the age of 18. Industry association Fitness Australia has developed a working with children check, which provides some information on state by state legal requirements.

  • Workplace, health and safety. Involves the management of risks to the health and safety of everyone in your workplace including employees as well as customers, visitors and suppliers. For more information refer to Australian Government website business.gov.au for WHS information for businesses.

    For a WHS guide for Fitness Businesses (provided by Risklogic and Fitness Australia), refer to Work Health Safety Guidelines-August 2012.

  • Workplace Environment. How persons conducting a business or undertaking need to provide and maintain a physical work environment that is without risks to health and safety. This covers;

    • the physical work environment, such as workspace, lighting and ventilation.
    • facilities for workers, including toilets, drinking water, washing and dining areas, change rooms, personal storage and shelter.
    • requirements for remote and isolated work and workplaces.
    • emergency plans.

    Refer to Work Health and Safety (Managing the Work Environment and Facilities) Code of Practice 2015.

  • Industrial relations. Refers to a relationship between the employers and employees. It also refers to a field of study that examines these types of relationships, especially groups of workers in unions. The employers are represented by management and employees are represented by unions. There's also a third party involved, the government which acts in the interests of the employees by enacting various legislation. In Australia workplace relations are overseen by the Fair Work Ombudsman. For regulations, refer to the Fair work Act and National Employment Standards. For more tailored information and useful resources to help small business owners meet their workplace obligations refer to Fair Work Ombudsman - find help for small business.

  • Privacy. Covers the storing and use of personally identifiable information, personal healthcare information and financial details. This legislation is largely administered at the federal level although some states/territories have additional legislation. It is largely based on the 13 Australian Privacy Principles

  • Anti-Discrimination and Equal Opportunity. Prohibits discrimination on the basis of individual characteristics such as race, religion, age, gender identity, sexual orientation, pregnancy, family responsibilities, or disability. Includes inclusion of people with disabilities. For more information refer to the right to a discrimination free workplace.

    For business advice related to Equal Opportunity refer to Equal Employment Opportunity and Diversity.

  • Standards of qualifications. Minimum accreditation is sometimes required for staff members in certain positions.

  • Standards of business practice, facilities and equipment. There are a variety of business administrative reporting laws and regulations, particularly in regards to taxes. Other laws in this area may require certain safety and operational standards for facilities and equipment. For helpful best practice guidelines refer to Business principles and guidance for fitness businesses.

  • Advertising and promoting the business. There are laws that ensure ethical advertising and promotion of products and services to prevent false and misleading statements (untrue, inaccurate and/or unsubstantiated claims about products or services). The Australian Competition & Consumer Commission (ACCC) offers more information on this topic.

For the most part, the laws (Acts) are not specific to the Fitness Industry because the industry is largely self-regulated. However, most states and territories have developed regulations and/or codes of practice under their respective Consumer Protection or Fair Trading laws that cover the Fitness Industry.

Click on the different sections of the map below to see what types of legislation, regulations and codes of practice are applicable for each state/territory. For any Commonwealth (National) legislation and guidelines, the icon in top left-hand side of the map contains those links.

Peak industry association Fitness Australia has developed a National Fitness Industry Code of Practice which provides direction and support for personal trainers, fitness instructors and fitness business owners.

In certain states/territories (ACT, QLD and WA), the requirements outlined in the code of practice are mandatory as decreed by the relevant state/territory Department of Consumer Protection or Fair Trading. Other states/territories (SA, NSW, VIC & TAS) either have a partially or fully voluntary recommendation to follow the code of practice.

If a fitness professional or organisation chooses to become a member of Fitness Australia and be recognised on the Australian Register of Exercise Professionals,  then they are agreeing to abide by the code of practice regardless of whether or not the official recommendation for their state/territory is voluntary or not. 

Fitness Australia has developed a Duty of Care which applies to all fitness professionals:

To prevent harm, which could reasonably be expected to occur in the course of providing advice or instruction to clients.

Staff employed by organisations such as fitness centres may be required to abide by a Code of Conduct and also a variety of Policies and Procedures.

  • Policies - Can be in hard (paper-based) or digital form and should be accessible to all employees. Policies often stipulate how the workplace will be implementing and abiding by relevant legislation, for example, a workplace may have a Privacy Policy or an Anti-Discrimination / Equal Opportunity Policy. 

  • Procedures - Otherwise known as Standard Operating Procedures (SOPs), they are detailed documents which outline how to safely and effectively complete a task step-by-step. Procedures may also be supported by task checklists which allow team members to communicate that certain processes have been completed as per the schedule, for example, regular maintenance of equipment or cleaning duties.


Examples of policies and procedures that may be applicable in a fitness environment include, please note that some of these examples may simply be sub-topics in a larger policy that encompasses a broad area of the business. For example a Workplace Health and Safety policy may include sub-topic sections that include Hygiene; Emergencies; Pre-Exercise Health Screening; and Communication and Record Keeping.

It is an industry standard that fitness professionals conduct a pre-session health screening with all new clients. This process which has been developed by industry associations like Fitness Australia includes a series of questions and testing that helps to determine the risk category for individual clients so that you are aware of any potentially hazardous situations that may occur and plan the fitness session accordingly.

In keeping with applicable legislation and industry guidelines, there are often strict rules that must be followed in regards to privacy and record keeping. These laws help to prevent unauthorised access to personal records, financial theft, and identity fraud.

The following considerations should be including in a privacy / record keeping policy:

  • Client medical details are not discussed or disclosed without their consent.

  • Client information, including contact details, is only discussed and shared with authorised parties.

  • Record keeping is accurate and secure storage is maintained.

  • Client records relating to minors are co-signed by parent or guardian.

Different businesses will have different record-keeping needs depending on their size, structure and nature.

Refer to record-keeping-for-business to choose what's relevant to your business.

Throughout the provision of customer service, it may be necessary to communicate with colleagues, supervisors or other stakeholders and also to produce reports and other documents. It is essential that a workplace has clear expectations on how these documents are produced, completed, reported, and stored. This helps to prevent miscommunication, delays, errors, and legal non-compliance.  

Some examples of where communication and/or reporting may be required include:

  • Client meetings/orientations and pre-exercise health screening or personal training sessions.

  • Telephone enquiries and message taking.

  • WHS incidents.

  • Complaints and feedback.

A communication and reporting policy would include appropriate conduct guidelines for certain situations and stipulations on how to accurately complete documentation, time frames for reporting and hierarchies that must be observed.

The timely and effect actioning and resolution of complaints and conflict will help to ensure customer satisfaction and improved business relations. Numerous methods and strategies exist in this area however the most important things to have in place is a formal process that you and all staff members follow in the event of a complaint or conflict situation, this will help to achieve consistency.

Overcrowding in a facility increases risks to clients in the forms of injuries, illnesses or even death in the case of an emergency event taking place. Fitness centres should have a policy in place that mitigates these risks. Possible solutions include: Promoting off-peak hours; Offering more classes; Educating members about lesser used equipment to avoid bottlenecks with popular equipment like dumbbells and treadmills.

Ventilation can be mechanical (air conditioners/fans) or natural (open window / outdoor areas).

Adequate ventilation is essential to client comfort because it:

  • Maintains a balance of gases such as carbon dioxide and oxygen.

  • Limits heat and humidity.

  • Control odours.

Possible solutions to poor ventilation include: Upgrade air conditioning with bacteria absorbing filters; Add windows (if possible) or open existing windows/doors; Set-up fans or blowers.

Due to the high volumes of people within fitness facilities, it is essential to maintain high hygiene standards. Good hygiene prevents the spread of germs and viruses as well as maintaining an aesthetically pleasing environment free from dirt, mould, and rubbish.

Hygiene is divided into two categories:

  1. Personal hygiene - Includes handwashing; dental care, controlling body odour etc...

  2. Facilities hygiene - Includes cleaning and sanitation of areas such as change rooms/toilets, disinfecting gym equipment, vacuuming/mopping floors.

This policy should summarise the key points of the applicable Workplace Health and Safety (WHS) legislation including:

  • Duty of care responsibilities for staff.

  • Hazard identification and risk assessments.

  • WHS committees information (if applicable).

  • First aid training, processes, and resources.

  • May be combined with the emergency evacuation policy and/or the hygiene policy as they all contain safety related content.

Having a safe workplace with all hazards identified and risk assessed is not only a legal requirement but also a potentially life-saving precaution against major incidents which could result in injury, death, legal action, and/or bad publicity for the business. 

All employees and clients should be made aware of emergency procedures or be able to rapidly ascertain this information from clear signage and instruction. This information may save the life of personnel and clients in a dangerous situation.

It is a legislated requirement for businesses to display emergency evacuation plans and exit signs and to allocate responsibility to a person to direct personnel and clients to a designated evacuation point. Annual testing of smoke detectors, emergency lights and fire hydrants is recommended and even mandated in certain states/territories.

Personal presentation standards are usually put in place to increase industry reputation and credibility and may include:

  • Staff uniforms and/or name badge.
  • Staff styling requirements. For example, long hair tied back, no false nails, minimal jewellery.

Health and safety requirements within the industry require appropriate clothing and footwear. These stipulations help to prevent accidents and injuries. For example:

  • Closed in shoes helps to prevent injury to the foot when using dumbbells.  

  • Certain clothing items can provide protection from the elements especially if exercising outdoors.

  • Non-slip shoes help to provide grip when running.

  • Appropriate shock-absorbing shoes help to prevent impact injuries to the foot, leg, and back.

All footwear and clothing worn should be appropriate for the activity ie. non-slip soles, or made from breathable materials.

Many individuals use the equipment on offer within a fitness organisation so it is imperative that policies and procedures are in place regarding the appropriate use, care and maintenance. This helps to prevent the equipment accidents occurring due to improper use or equipment breaking/malfunctioning due to wear and tear. 

Considerations for policy/procedure inclusion:

  • Correct use instructions are clearly posted and communicated to all users.

  • Monitoring of clients whilst equipment is in use.

  • Regular cleaning and routine maintenance is undertaken.

  • Regular professional servicing of equipment as per manufacturer instructions is recommended.

  • Any damaged or broken equipment should be taken out of commission and repaired or replaced as soon as possible.

All approved fitness programs will have set participant to instructor ratios. Ratios that are deemed safe and reasonable are:

  • For moderate-risk activities - 10:1

  • For high-risk activities - 5:1.

Client supervision policies and procedures help to provide staff with guidelines on the monitoring process, checking for:

  • Indications of poor technique.

  • Exercise intolerance.

  • Progression possibilities.

This type of policy/procedure can help to prevent injuries occurring from improper exercise technique or health-related incidents occurring due to overexertion. Staff must ensure the client's program documentation is updated with any monitoring test results.

Copyright licences are issued to individuals and businesses who are users of music (including those in the fitness industry). These licences are administered by the following organisations: Australasian Performing Right Association (APRA) and the Phonographic Performance Company of Australia of (PPCA).

Generally speaking, any business that wants to play copyright-protected music or music videos has to first obtain the requisite licences. It is illegal to play protected sound recordings for commercial purposes without a licence. The Copyright Act imposes an obligation on those who wish to broadcast, communicate or publicly perform protected sound recordings and music videos to obtain the licence of the copyright holders.

Though there is no specific Government sanctioned licence for operating in the fitness industry there are some types of licenses which are required, the main ones are:

  • Business License - All businesses are required to be registered and have an Australian Business Number (ABN), this identifies the business to the government and also larger community. 

  • Tax Registration - Depending on the size, revenue, and business structure there will be are a variety of taxes payable by businesses. For example, Goods and Services Tax (GST), Pay as you go (PAYG), Fringe Benefits Tax (FBT).

  • Industry Regulatory Authority - Providers are encouraged to join an industry association. Fitness Australia is the national health and fitness industry association and it monitors adherence to industry standards of service, care and safety via registration of exercise professionals and businesses.

  • Local Government Permits - Depending on the nature of the business there may be certain permits that are required, especially if public places like parks are going to be used for business purposes.

There are many other types of licences, registrations, and permits which will vary from business to business depending on its size, location, operating structure, and actual activities undertaken. More information can be obtained from the Australian Government's Business.gov.au website.

How you manage your stock will depend on the type of stock you use and how much you hold. Good stock management will help you maintain the right level of stock to meet customer demands. Accurate and timely reporting on stock numbers and value is an accounting and tax requirement.

Refer to managing your business inventory.

An annual stocktake is an essential part of stock control and is the best way to keep track of your stock. You should also implement an ongoing system for tracking items you have bought and sold.

Refer to prepare for stocktake.

Industry association Fitness Australia has developed a position statement scope of practice for registered exercise professionals , which covers the following types of exercise professionals:

  • Personal Trainer (and also Advanced Personal Trainer - who have completed additional certification/training).

  • Gym Instructor.

  • Group Exercise Instructor.

  • Group Exercise Leader. 

Some of the duties performed by these different positions may overlap, however, there are regulations regarding scope and boundaries. For example, Personal Trainers and Advanced Personal Trainers are permitted to refer clients to medical or allied health professionals whereas a Gym Instructor or Group Exercise Instructor would not (rather they would refer the client to a Personal Trainer first).

Fitness professionals and/or service providers may be legally liable to compensate clients who are injured if the fitness provider is found to be negligent in the provision of their services. This is known as Civil Liability and there are various state-based Acts of Legislation relating to it (see legislation map above more information).

Civil Liability differs from Criminal Liability in that it is a private negotiation process between individuals, organisations, and/or government agencies when one or more parties believes their civil rights have been breached and they seek financial compensation from the other party (suing them). For example defamation, breach of contract, and negligence resulting in injury or death. In contrast, Criminal Liability is when an individual or company breaks a specific state or federal criminal law and is held accountable (prosecuted) by the Justice System. Note: Civil liability cases can also be criminal liability cases, however, civil liability offers an additional layer of reimbursement where criminal prosecution often does not.

A fitness professional or service provider is negligent, and thus susceptible to civil liability if the provider has failed to comply with the standard of reasonable care that is to be expected of a provider of such services in the specific context.

Fitness Australia have developed a Report outlining Liability for Negligence in the Australian Fitness Industry, which covers the legal consequences of a failure to adopt adequate safety practices.

Legal Liability Cover provides peace of mind if an accident does occur which is deemed to be your fault. Fitness Australia in conjunction with Exercise Professionals Guild Insurance have made available a competitive Public Liability and Products Liability Cover policy for members. This policy covers:

  • $5 million professional indemnity.

  • $10 or $20 million public liability.

  • $10 or $20 million products liability.

  • $100k property in your care cover.

  • Dedicated personal account manger.

  • Fast claims service with outstanding customer service.

  • Dedicated risk mangement website.

When you start a business, you need to understand what laws apply to your new business. Find out the common legalities your new business may need to comply with, such as registrations, contracts, marketing and employment. Additionally, consult a legal professional, or business adviser familiar with your industry, for advice on which areas require your compliance.

Refer to Legal essentials for business.

Marketing - Legal Obligations

When marketing your business, products or services, make sure you’re aware of any regulations or legal requirements. Refer to legal-obligations-when-marketing.

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Woman holding document folders labelled policies and procedures