This is becoming a major issue for employers.
A case has just concluded in Victoria where the Ombudsman had prosecuted a retail employer for a failure to pay proper wages to its employees.The employer owed various employees over $20,000.
This continues a trend of the Fair Work Ombudsman auditing many employers over the past 12 months to investigate these issues.There are numerous examples of employers(whether knowinging or not) have failed to pay proper wages to its employees.
The important message here is that if an employer has not been paying accurate wages and it is audited, it may face legal proceedings from FWA.In most cases, in my experience, employers simply do not know that they are not complying, given the complexity of the awards and other legislation.
Review you wages rates and ensure that you are compliant.It will cost you a lot less to fix things up before the Ombudsman comes knocking on your door.
Friday, 5 February 2010
teething problems with new awards
As a Father of young children, I know all about the problems encountered with teething....well, some of the new modern awards seem to be going through some similar problems.
Last week, Fair Work Australia made a decision which will affect many retailers who are operating under the modern awards.Employers must now offer employees shifts of a minimum of 3 hours.At first glance , one can see the reasoning for the decision;being that employee would disadvantaged if their shift was only 1-2 hours, particularly if the travel involved in getting to work is lengthy.
However, the AFR today has a story which shows the negative aspect for employees.A school student bhas had his shifts cancelled because they were only 1.5 hours long, and after this decision, the employer must pay him for at least 3 hours.The circumstances here are that the student would go to work in the hardwear store immediately after school, starting at 4pm.The shop is only open until 5.30 pm, thus the short shift.You can see my employees, in this situation, may feel hard done by the new legistlation and awards and it will be interesting to see whether the Government picks up on this issue.
A message for all employers, not only in retail.Carefully look at that new award that governs your workplace as there may be provisions in those awards that are different and increase your obligations to your employees.
Last week, Fair Work Australia made a decision which will affect many retailers who are operating under the modern awards.Employers must now offer employees shifts of a minimum of 3 hours.At first glance , one can see the reasoning for the decision;being that employee would disadvantaged if their shift was only 1-2 hours, particularly if the travel involved in getting to work is lengthy.
However, the AFR today has a story which shows the negative aspect for employees.A school student bhas had his shifts cancelled because they were only 1.5 hours long, and after this decision, the employer must pay him for at least 3 hours.The circumstances here are that the student would go to work in the hardwear store immediately after school, starting at 4pm.The shop is only open until 5.30 pm, thus the short shift.You can see my employees, in this situation, may feel hard done by the new legistlation and awards and it will be interesting to see whether the Government picks up on this issue.
A message for all employers, not only in retail.Carefully look at that new award that governs your workplace as there may be provisions in those awards that are different and increase your obligations to your employees.
Monday, 25 January 2010
Employment Contracts - A Simple Tool in the War for Talent
It's a new year and everyone's motivated to get the best out of their business. This, of course, means getting the best out of your employess and making sure you not just keep the good ones but motivate them to the best of their potential.
One very simple and highly overlooked tool is their employment contract. We are constantly amazed at how many employers don't give their employees even a basic employment contract. Unfortunately, we get to see the end result, which is inevitably some kind of dispute as to what was agreed in the first place.
Don't forget though that an employment contract can also be used to give your employees some great benefits and incentives as well as to protect your business. Build in some flexibility, bonus schemes or profit share and you'll really see your productivity jump. Besides which, an employment contract shows you're professional, compliant with the latest industrial laws, makes existing employees feel secure and will assist you attract better employees.
A good employment contract is a simple but effective weapon in your war for talent.
One very simple and highly overlooked tool is their employment contract. We are constantly amazed at how many employers don't give their employees even a basic employment contract. Unfortunately, we get to see the end result, which is inevitably some kind of dispute as to what was agreed in the first place.
Don't forget though that an employment contract can also be used to give your employees some great benefits and incentives as well as to protect your business. Build in some flexibility, bonus schemes or profit share and you'll really see your productivity jump. Besides which, an employment contract shows you're professional, compliant with the latest industrial laws, makes existing employees feel secure and will assist you attract better employees.
A good employment contract is a simple but effective weapon in your war for talent.
Wednesday, 16 December 2009
Julia Gillard Announces Fair Work Commissioners
Yesterday, Julia Gillard announced new appointments of Fair Work Australia Commissioners who will play a key role as independent umpires under the new Fair Work Australia system.
For the full press release and short bio on each of the new Commissioners click here
For the full press release and short bio on each of the new Commissioners click here
Wednesday, 9 December 2009
Fair Work Week
The Minister for Employment and Workplace Relations, Julia Gillard, has announced that Fair Work Week will run from 4-8 January 2010 to highlight elements of the new Fair Work system which comes into full operation on 1st January 2010.
For the full media release click here
To summarise, under the Fair Work sytem:
For the full media release click here
To summarise, under the Fair Work sytem:
- The system will comprise of a safety net of 10 legislated National Employment Standards and new modern awards
- Working parents will have the right to request flexible working hours or additional parental leave
- Enterprise level bargaining with the requirement that all employers and employees negotiate in good faith and prohibiting industrial action outside of the bargaining period
- Businesses with less than 100 employees will no longer be able to sack employees for no good reason or no reason at all. Fair Work has also removed so-called 'operational reasons' provision
Fair Work will ensure that small businesses have a full 12 months to assess new employees and larger businesses a full 6 months before an unfair dismissal claim could be made.
For more information about the new Fair Work system, visit Fair Work Online at click here or call us on 02 9805 5600.
Monday, 23 November 2009
Tuesday, 17 November 2009
Clerical Award Headache coming for Business
The AIRC has handed down a decision which may have far reaching consequences for employers that employ staff under the Clerical Award.
Before you say, "well we don't fall into this category", consider again.Basically, if you employ someone who does any kind of clerical work, then you may well be covered, particularly but not only if they are paid by the hour.
Currently, if the emplyee earns more than 15% of above the top award rate( about $851 per week) they are not entitled to various benefits under the award such as overtime/penalty rates and rest breaks.
Not any more.All staff employed in a clerical capacity will be entitled to all benefits under the Clerical Award as of 1 January 2010.That is, employees earning over $851 per week currently may be entitled to overtime if they work more than 38 hours per week.
This is a set back for employers, however there is a glimmer of encouraging news....
An employer may choose to put the employee on a salary and in such a case the provisions of overtime and rest breaks will not apply, providing that the salary is equal to or more than what the employee would have earned on a year basis if paid by the hour.
And here is the hitch.Employers will be required to keep accurate records of hours worked and will need to amend the salaries on a yearly basis to accurately reflect the hours worked and what they would have been paid.
This will be complicated and it will be easy for an employee to fall foul of the provisions outlined.
Another blow to employers from what i have been saying for sometime is the sleeping giant of these IR reforms-the award moderisation process.
Before you say, "well we don't fall into this category", consider again.Basically, if you employ someone who does any kind of clerical work, then you may well be covered, particularly but not only if they are paid by the hour.
Currently, if the emplyee earns more than 15% of above the top award rate( about $851 per week) they are not entitled to various benefits under the award such as overtime/penalty rates and rest breaks.
Not any more.All staff employed in a clerical capacity will be entitled to all benefits under the Clerical Award as of 1 January 2010.That is, employees earning over $851 per week currently may be entitled to overtime if they work more than 38 hours per week.
This is a set back for employers, however there is a glimmer of encouraging news....
An employer may choose to put the employee on a salary and in such a case the provisions of overtime and rest breaks will not apply, providing that the salary is equal to or more than what the employee would have earned on a year basis if paid by the hour.
And here is the hitch.Employers will be required to keep accurate records of hours worked and will need to amend the salaries on a yearly basis to accurately reflect the hours worked and what they would have been paid.
This will be complicated and it will be easy for an employee to fall foul of the provisions outlined.
Another blow to employers from what i have been saying for sometime is the sleeping giant of these IR reforms-the award moderisation process.
Subscribe to:
Posts (Atom)
Labels
- Employment Contracts (2)
- Employment Contract (1)
- Employment Law (1)
- Fair Work Australia (1)
- Fair Work Australia Commissioners (1)
- Forward With Fairness (1)
- Industrial Relations (1)
- Julia Gillard (1)
- Unfair Dismissal (1)
