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WorkSight Newsletter
June 2000

Salary Limit for Unfair Dismissal Claims

Employees whose remuneration is over $69,200 are not covered by the unfair dismissal laws.

Remuneration does not just refer to the annual gross salary. The Australian Industrial Relations Commission also takes into account other issues such as superannuation, the provision of a car or a mobile phone which is available for personal use.

What is the value of the personal use of a car?

In determining the value of the personal use of a car for an employee the Industrial Relations Commission has adopted the following formula:

1. Establish the annual distance travelled.
2. Calculate the percentage of the total distance travelled which was for private use.
3. Establish the cost per kilometre for the type of vehicle eg by using the RACV rate.
4. Multiply the annual distance travelled for personal use by the cost per kilometre.

This gives you the value of the private use of the motor vehicle for the employee.

National Wage Case Decision

The Australian Industrial Relations Commission has awarded all employees paid under a federal award a $15.00 a week pay increase.

The decision was handed down on 1 May 2000 but the increases do not come into effect until the Commission has specifically decided to increase the rates in each federal award. The award rates cannot be increased within 12 months of the last national wage case increase.

If you already pay your employees at least $15.00 a week more than the award rate you will not have to increase their wages.

If you are uncertain as to whether this decision affects your employees contact WorkSight.or Ph: (03) 9372 8126.

How much is staff turnover costing you?

It has been estimated that it can cost between 93 - 150% of an employee's annual salary to replace an employee. Some of the costs include:

1. Advertising for a replacement
2. Employment of a temporary employee because you have been unable to find a suitable replacement.
3. Talking to potential applicants when they ring for further details.
4. Looking through job applications.
5. Interviewing for the job.
6. Making a decision on who to employ.
7. Training the new employee.
8. The time taken before the new employee is as productive as the previous employee.

It is important to measure the turnover of staff (ie how many staff are leaving your company each year).

Every company should be aware of what their turnover is and be in a position to compare it with previous years. By doing this you can see whether staff are increasingly leaving you or staying with you.

In addition you should talk to those staff who are leaving to find out why they are leaving. In many cases there will be a good reason eg change in career, moving away from the area, returning to study. But in some instances the reason may be because they are not happy working for your business.

Once you know why people are leaving you can address any problems that are arising.

So start reducing your costs now - don't let your staff leave without finding out why and make sure that you are doing all you can to keep your quality staff.

WorkSight can assist you with staff retention advice and assistance. Call us on (03) 9372 8126 to discuss what you can do to improve your staff turnover rate.

Superannuation up to 8%

Just a reminder that the compulsory payment of superannuation will increase to 8% from 1 July 2000.

Minimum Wage

The federal minimum wage is now $400.40 a week. This means that no full time adult employee employed under a federal award can be paid less than this.