With a new financial year approaching, it is now an opportune time for business to review industrial relations policies and make any necessary changes to comply with the Fair Work legislation.
1 July 2011 will see the new minimum wage rate become effective
Fair Work Australia has determined a $19.40 per week wage rise for those workers earning the minimum wage. Employers must ensure the new financial year pay packet for their employees receiving the minimum wage is calculated at a rate no less than $15.51 per hour.
July 1 will also see the commencement of employer facilitated paid parental leave (PPL) through the business payroll
Mothers or primary carers eligible for the government-funded parental payments are entitled to receive a maximum of 18 weeks pay at the national minimum wage.
From 1 July 2011, the Family Assistance Office will transfer the PPL funds to employers for the processing of payments to eligible employees. Employers are required to provide payslip advice to eligible employees and retain such records for seven years.
Preparing for OH&S overhaul
Australia currently has ten occupational health & safety jurisdictions operating across the country, with more than 400 associated regulations and codes of practice. The States and Territories are now working with the Commonwealth Government to draft uniform laws to cover all employers and workers in Australia.
The harmonisation of the existing OH&S laws is scheduled for 1 January 2012.
The new laws will require business to review existing OH&S policies to ensure best practice management systems are introduced, and that both employers and employees comply with the policies adopted by business.
Is your business ready to implement these changes?
The Employment Law team at Everingham Solomons is well equipped to assist you with all your workplace relations issues from policy updates to termination of employees, contracts of employment to redundancy correspondence, warning letters to application of the Modern Awards because Helping You is Our Business.
Click here for more information on Rebecca Greenland.
If you are an employer faced with the difficult task of making employees redundant, it is important to know what obligations you have and what steps you ought to take to meet those obligations.
If you are an employee faced with redundancy, it’s important to know your rights and ensure you receive the correct entitlements.
What does redundancy mean?
A redundancy occurs when employment is terminated because the employer decides they no longer want that person’s job to be done by anyone, or because the employer becomes insolvent or bankrupt.
In order for a redundancy to be a ‘genuine redundancy’, it must be shown that:
The job will not be done by anyone else and the position will not be filled by any other person.
The requirements in the applicable modern award, enterprise agreement or industrial instrument to consult with the employee about the redundancy have been followed.
Redundancy pay
Redundancy pay may be up to 16 weeks of ordinary pay and is calculated upon the length of service. There is no legal requirement to pay redundancy pay to employees who have been employed for less than one year. Redundancy pay is paid in addition to any other entitlements, such as outstanding wages and accrued leave entitlements.
Steps to redundancy
Firstly, an employer ought to consider all options and alternatives to redundancy, like redeployment, job sharing and reduced overtime.
Secondly, an employer should meet with the employee who is to be made redundant to explain the situation and give him or her opportunity to ask questions.
Thirdly, written notice of the redundancy ought to be given to the employee.
Whether you are an employer or employee, Everingham Solomons will be more than happy to assist you with any employment queries because Helping You is Our Business.
Click here for more information on Jessica Simmonds.
If you are beginning a new job, you should ensure that your relationship with the business hiring you is clearly defined.
If you work for a business under a contract of employment in return for regular pay, you will generally be classified as an “employee”. Employees are provided with the safety net of minimum terms and conditions of employment under the National Employment Standard (NES), which include annual & personal leave, parental leave, a right to request flexible working arrangements, a standard working week of 38 hours, public holiday entitlements and notice of termination.
Independent contractors, on the other hand, are generally not entitled to the benefits under the NES. “Contractors” are usually engaged under a contract to perform a specific task or are contracted for a specific period. A contractor will normally supply & use their own equipment, and will have control over the hours they work.
Whilst most agreements will state whether the relationship is that of “employer/employee” or “principal/contractor”, some employers may attempt to conceal the true nature of the arrangement in an attempt to avoid paying superannuation and leave entitlements.
The following factors are taken into consideration in determining whether a person falls into the “employee” or “contractor” category:
the degree of control the “employer” exercises over the place of work, hours of work and the manner in which work is performed.
whether the worker is at liberty to advertise their services to others.
deduction of income tax from remuneration paid to the worker.
whether the worker provides significant tools or equipment.
method of remuneration – periodic wage/salary vs. payment on completion of specific tasks.
provision of paid holiday or sick leave.
whether the worker spends a significant proportion of his/her remuneration on business expenses.
If you are currently operating as a “contractor” however think that you should be entitled to the benefits of an “employee” classification, contact the employment law team at Everingham Solomons where Helping You is Our Business.
Click here for more information on Rebecca Greenland.
With a new financial year approaching, it is now an opportune time for business to review industrial relations policies and make any necessary changes to comply with the Fair Work legislation.
