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For more information and advice on matters covered in the topics below, contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au

Absenteeism

Absenteeism in the Workplace (WF June 98)

Do you monitor how much unplanned leave your employees take? Do some staff take much more leave than others? Do you counsel them about it? Absenteeism should be addressed as soon as it becomes a problem.

Important issues to consider include:

Why are they taking so much leave?
Are they aware they are taking far more than the average?
Is their sick leave genuine?
What are they doing to improve their health?
Do they have serious personal problems causing the illnesses?

WorkSight can draw up absenteeism policies to suit your business, analyse employees' leave histories and counsel staff with absenteeism problems.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Alcohol at Work

In a case of unfair dismissal before the Australian Industrial Relations Commission a company was ordered to reinstate an employee who was found to have over the legal limit of alcohol in his blood whilst at work.

The company had a clear policy that employees must not consume alcohol whilst on duty. They investigated the incident to the satisfaction of the Commission. However they were ordered to reinstate the employee because the Commission felt that they were harsh in dismissing the employee instead of considering options such as suspension.

The employee had not been drinking whilst at work but had been drinking heavily the night before. When he drove a company vehicle the next morning he was stopped by police and tested for alcohol. He was well above the limit and had his license suspended for 6 months.

This case shows that whilst it is important to determine a policy for your company and to investigate an incident, you also need to be sure that the conclusion you are reaching is fair and reasonable.

In this case the employee:

had been working for the company for 25 years
had a good employment record,
was over 50 years old,
had very limited skills, and
was unlikely to find another job.

In addition the Commission noted that the employee had sufficient long service and annual leave to allow him to be on leave for the 6 month period during which his license was suspended.

For these reasons the Commission felt that a lesser penalty than dismissal was appropriate and ordered for him to be reinstated.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Australian Workplace Agreements

Australian Workplace Agreements (AWA) have been abolished. Those employers who had at least one employee on an AWA as at 1 December 2007 will be allowed to use a new form of an individual contract called an Individual Transitional Employment Agreement (ITEA). These can continue to operate until 31 December 2009. Businesses that have not previously used AWAs will not be able to use AWA’s or ITEAs.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Changes to the IR system

Changes to the industrial relations system: What award applies to your business (Updated June 08)

WorkChoices brought thousands of state awards into the federal industrial relations system. Despite the election of a new federal government these state awards remain in the federal system making it difficult for employers and employees to find out exactly what the right pay rates and employment conditions are. This is a brief explanation of the different types of awards.

Preserved award: If you are a “constitutional corporation” (which you will be if you trade or are a Pty. Ltd. Company for instance) or if you are a business operating in Victoria, the Northern Territory or the ACT and you were previously covered by a federal award, you are now covered by a “preserved award”.
- current rates of pay
- current rates of the allowances - search under the name of your federal award.
  
  You can also use the AIRC website to look at other employment conditions that apply to your business. However, you should not apply the rates of pay that are shown on this website as these are not accurate for “constitutional corporations” as they do not incorporate the increases awarded by the Fair Pay Commission.
Transitional award: If you are not a “constitutional corporation” and you do not operate in Victoria, the Northern Territory or the ACT, you are not subject to the WorkChoices system. If a state award previously covered you, you will continue to operate under the relevant state industrial relations system. However, if a federal award previously covered you, a “transitional award” now covers you.
- current rates of pay, allowances and employment conditions - search under the name of your federal award but ensure you only look at the version which describes itself in the title as “transitional”.
NAPSA: A “NAPSA” is a “Notional Agreement Preserving a State Award” or in slightly more simple language a “preserved state award”. If a state award in WA, SA, Tasmania, NSW or Queensland previously covered you and you are a “constitutional corporation” you are still covered by that state award but it is now operating under WorkChoices and is called a “preserved state award”.
- Current rates of pay
- employment conditions - search under the name of your preserved state award (NAPSA).
  
  So far, there have been no changes to the rates of allowances in preserved state awards and so you can continue to use the rates for allowances contained in the version of the award on this website. However, you should not apply the rates of pay that are shown as these are not accurate for “constitutional corporations” as they do not incorporate the increase awarded by the Fair Pay Commission on 1 December 2006.

Widespread confusion over rates of pay (WF April 07)

It is five months since the Fair Pay Commission handed down its first decision to increase rates of pay and yet there are still no official rates published for over 90% of all awards across the country. In direct contrast to how the Australian Industrial Relations Commission acted in relation to national pay increases, the Fair Pay Commission has decided not to issue official rates of pay. The Department of Workplace Relations is now attempting to calculate all the rates of pay but has so far posted less than 10% of all the new award rates of pay. This is leaving both employers and employees adrift, not knowing what they should be paying or being paid.

In addition, the rates of pay posted on the WorkChoices website have been found to be often inaccurate. WorkSight carried out a survey of approximately 230 pay scale summaries provided by the Department of Workplace Relations. A total of 88 of these have had to be corrected, some of them several times. This equates to over 33% of the rates of pay published by the Government having had to be corrected. This is an unacceptable situation for employers and employees. The Fair Pay Commission is now considering whether to grant a further increase in award rates of pay around mid-2007. It is doubtful whether all the official rates of pay from the last pay increase on 1 December 2006 will have been published by then. This will lead to further confusion with employers falling further behind in providing increases in pay to their employees.

WorkSight has expressed its concern with this lack of information in its submission to the Fair Pay Commission. In it we stated, “Comprehensive pay and classification scales should be published by the Fair Pay Commission on which employers can rely.” We went on to point out that “For many employers there is simply no way of determining their legal obligation in relation to pay rates. Employers need certainty about the rates applicable under pay and classification scales to enable them to comply with their legal obligations.”

We hope that with the next decision the Fair Pay Commission will be committed to the comprehensive provision of legally binding official rates of pay for all Pay and Classification Scales.

WorkChoices Changes (WF December 06)

WorkChoices Changes The Federal Government recently announced that further changes would be made to the WorkChoices system. These changes include:

An ability to cash out some accrued personal leave (a full time employee must be left with at least 15 days personal leave). The employee would need to have requested that the leave was cashed out in writing and the employer would need to agree to allow this to happen. Previously, only two weeks of an employee’s annual leave could be cashed out.
A legislative entitlement for an employer to stand down employees when there is no work as a result of an event that is outside the control of the employer. This means that the employer would not have to pay the employee during the period of stand down but would not dismiss the employee.
Protection of redundancy entitlements for a 12 month period where an agreement that contained such entitlements has been unilaterally terminated unless a new agreement is made within the 12 month period. This is to ensure that an employer cannot terminate an agreement just to avoid paying redundancy entitlements.
Annual, personal/carer’s and compassionate leave is to be calculated on the basis of ordinary time earnings only (the legislation had been drafted in a way which allowed regular overtime to be included in the leave accrual rate).
Further streamlining of the record keeping provisions. The changes would mean that instead of having to maintain records of all hours worked an employer is only required to keep records for those hours that an employee is entitled to be paid overtime or other types of penalty rates. Employers will still be required to maintain records of all hours worked by casual and irregular part time employees.
As part of the minimum employment standards employers will be required to pay their employees on at least a monthly basis (rather than fortnightly as was previously the case).

The Government has stated that it plans for these changes to be in place before the end of the year. If you require any further information on these proposed changes and how they may affect you please contact WorkSight.

WorkChoices – What does it all mean? (WF March 06)

The new WorkChoices industrial relations system was introduced on 27 March 2006. With its introduction, the vast majority of businesses have moved into the new federal system with a completely new set of rules and jargon.

Here we will try to explain what some of the new terminology, new bodies and new rules will mean to you.

The Australian Fair Pay Commission (AFPC)

The Australian Fair Pay Commission will take over the role of the Australian Industrial Relations Commission to set award wages. In addition the AFPC will set minimum wages, rates of pay for apprentices, trainees, juniors and piece workers and casual loadings. Annual national wage cases are now a thing of the past. The AFPC will determine when and by how much minimum and award wages will increase. They will consult with interested parties to assist in their consideration. The Government has stated that it expects the AFPC to make the first adjustment to wage rates this Spring.

Australian Pay and Classification Scales (APCS)

Awards will no longer contain wage rates and classification structures. The AFPC will establish pay and classification scales for all employees covered by the WorkChoices system. Initially it is likely that these will be taken straight from existing awards but over time it is expected that the AFPC will develop simplified classification structures with revised rates of pay. It is not yet clear what these will look like or how they will be applied.

Australian Fair Pay and Conditions Standard (AFP&CS)

This is the minimum set of employment conditions that an employer can give an employee under the new system. It includes:

38 hours a week (these hours can be averaged over a year)
4 weeks annual leave (2 weeks can be cashed out each year)
10 days paid personal/carer’s leave
2 further days of unpaid carer’s leave – for unexpected emergencies when paid leave is exhausted or for casual employees
2 days of paid compassionate leave
52 weeks of unpaid parental leave
20% casual loading

However there are circumstances that allow employers to avoid giving their employees these conditions immediately. For instance, if you have already made a federal certified agreement and some of your conditions are less than the AFP&CS you will not need to increase them until you make a new agreement or if you terminate your agreement. Similarly, if you are currently operating under a state agreement, when you come into the new federal system, if some of your conditions are less than the AFP&CS you will not need to increase them until you make a new agreement or if you terminate your agreement or at the end of the 3 year transition period.

If your award (whether it is state or federal) provides for a standard 40 hour working week you will not be required to reduce it immediately to the 38 hour working week provided in the minimum employment standards.

Federal Awards

Federal Awards will continue to operate but will be “simplified” and “rationalised”. In this context “simplified” means that many employment conditions will be taken out of them – for instance those employment conditions that are covered by the minimum employment conditions (the AFP&CS) will not continue to operate in awards. However there is an exception to this rule: if you provide more generous employment conditions than those contained in the minimum standards, those award conditions will be preserved for your employees. In addition, awards cannot cover matters such as long service leave, jury service or superannuation. These employment conditions will be covered by state or federal legislation. However, again, if your employment conditions are more generous than the standards set in the legislation, the award conditions will be preserved.

There will be other restrictions on what can be in awards. For instance, an award cannot restrict the use of labour hire employees or independent contractors or prevent an employer offering an Australian Workplace Agreement (AWA) to an employee.

Awards will also be “rationalised” which means that they will be reduced in number. It is not yet clear how many awards will be deleted but some employer organisations want to reduce the number of awards to one per industry.

There will be very few new awards made and those awards that survive the “rationalisation” process will gradually become less and less relevant as they will not keep up with community standards and agreements will become even more attractive because they can contain the full range of employment conditions that apply to a business.

State Awards

Those businesses that are “constitutional corporations” (i.e. most businesses that are incorporated) and currently use state awards will be brought into the new federal system. They will be allowed to continue to use their state awards for a 3 year transitional period. At the end of that time, if they have not made an agreement in the new system they will be moved onto a federal award. Whilst they remain on the state award, that award cannot be varied or up-dated (other than to remove any ambiguity or discriminatory or prohibited conditions).

If you need information or advice about how these changes will affect your business or any other employee relations issues affecting you or your employees contact Siân Owen or Janet Nicolson or Rae-Anne Medforth at WorkSight.

The Industrial Relations Revolution (WF Dec 05)

The Federal Government has now released the details of its proposed changes to the industrial relations system that is set to transform the way businesses employ their employees. The Government advertising campaign calls these changes “WorkChoices - A simpler, national workplace relations system for Australia” - but will it be?

A National Industrial Relations System

The major change is to bring up to 85% of all workers into the federal industrial relations system. The vast majority of all businesses (i.e. all those that are incorporated) in NSW, Queensland, South Australia, Tasmania and Western Australia will no longer be covered by their state industrial relations systems. These businesses will move into the federal system and can continue to use their state awards or agreements for a three year transition period although they will be able to make a new agreement with their employees as soon as they move into the federal system.

Those businesses that are not incorporated but are already party to federal awards or agreements can remain under their existing awards or agreements for a five year transition period but cannot make any new agreements. If, at the end of the transition period, they are still unincorporated they will be required to return to the relevant state system. The exception to this rule is that unincorporated businesses in Victoria will be allowed to operate indefinitely in the federal system.

At the federal level there will be the following bodies operating:

The Australian Industrial Relations Commission basically dealing with industrial disputes and unfair dismissals for businesses with over 100 employees;
The Office of the Employment Advocate which will be where businesses lodge agreements and Australian Workplace Agreements (AWAs - i.e. individual agreements);
The Fair Pay Commission will be setting the minimum wage rates;
The Office of Workplace Services will be responsible for ensuring that businesses comply with the minimum wage rates and minimum employment conditions.
The Award Review Taskforce will be aiming to reduce and simplify the number of awards that apply.

The state industrial relations systems will still remain as not all businesses can be covered by the federal system (for instance, unincorporated businesses, partnerships and probably state government employees).

Making an Agreement

When making an agreement or an AWA, businesses currently have to compare the agreement with the relevant award to show that they are not disadvantaging their employees by entering into the agreement. However, under the new system, an agreement must only meet the Fair Pay and Conditions Standard. The employment conditions in the box below make up this standard.

As long as an agreement contains at least these employment conditions it will be acceptable. If an award applies to a business and contains better employment conditions than the agreement, those conditions can continue to apply. However, if the agreement specifically states that the award will no longer apply, the agreement will override the award employment conditions.

In another significant change, an agreement (or AWA) will become enforceable as soon as it is lodged with the Office of the Employment Advocate. There will be no hearing or other assessment done either by the Office of the Employment Advocate or the Australian Industrial Relations Commission.

Fair Pay and Conditions Standard

38 hours a week (these hours can be averaged over a year)
4 weeks annual leave (2 weeks can be cashed out each year)
10 days paid personal/carer’s leave
2 further days of unpaid carer’s leave for unexpected emergencies when all paid leave has been taken or for casual employees
2 days of paid compassionate leave
52 weeks of unpaid parental leave 20% casual loading

Unfair Dismissals

Those businesses with up to 100 employees will no longer be covered by the unfair dismissal provisions and so will be free to dismiss employees without the risk of being taken to the Australian Industrial Relations Commission. However, the unlawful dismissal provisions that prevent employees being dismissed for discriminatory reasons will still cover all businesses.

Those businesses with over 100 employees will be able to dismiss an employee within a 6-month probationary period without risking a claim of unfair dismissal (it is currently 3 months). Employees who have been made redundant will also not be able to claim unfair dismissal.

National Wage Cases

The Australian Industrial Relations Commission will no longer hold annual, national wage cases. Instead the Fair Pay Commission will decide on the minimum wage levels as and when it sees fit. It will consult with relevant parties to decide on the appropriate level instead of hearing claims. The Government has said the Fair Pay Commission will adjust wages for the first time in Spring 2006.

Awards

The number of awards and what they can cover will be reduced significantly so they will only be used by those businesses that have not made, or do not want to make, an agreement with their employees.

How the industrial relations changes will affect your business (WF July 05)

On 26 May 2005 the Federal Government announced a wide range of dramatic changes to the federal industrial relations system. This will affect all Victorian employers and employees as well as those employers in other states that use the federal system. The Government also wants to introduce a single national industrial relations system that will do away with the state industrial relations commissions; however, this will be a more complicated goal as the states are unlikely to give up their powers in the near future.

The key changes that will be introduced are as follows:

Businesses with up to 100 employees will be exempt from the unfair dismissal provisions of the Workplace Relations Act. However, businesses will still be covered by the unlawful dismissal provisions that prevent employers from dismissing staff on discriminatory grounds.
The probationary period of employment (i.e. when new employees are not covered by the unfair dismissal laws) is to be extended from 3 months to 6 months. This means that employers will have 6 months to consider whether they want to keep a new employee instead of 3.
The Australian Industrial Relations Commission is to be stripped of most of its work and will be left merely to resolve disputes, simplify awards and deal with unfair dismissals from businesses with over 100 employees.
The Australian Fair Pay Commission will be established to set minimum rates of pay, junior and trainee rates of pay, all award classification rates and casual loadings. No information has been provided as to who will be on this Commission. It is likely that future increases in all these rates of pay will be less than we have become used to via the annual national wage case increases. This is likely to increase the differences between the pay rates in businesses: some employers will stick to the minimum rates of pay – others will try to attract better employees with higher rates of pay.
A range of employment conditions will be removed from awards. These include jury service, long service leave, notice of termination and superannuation. These conditions are already governed by a variety of forms of legislation. In addition, the Government is intending to introduce legislation that will set minimum standards for annual, personal and parental leave as well as the maximum number of ordinary hours of work. Once this occurs these conditions will be removed from awards.
In addition to setting minimum rates of pay the Australian Fair Pay Commission will set the Australian Fair Pay and Conditions Standard which will form the minimum employment conditions against which certified agreements and Australian Workplace Agreements will be compared. These will probably be similar to the Victorian minimum employment conditions that were in place prior to the introduction of Common Rule Awards in January 2005. No longer will the Australian Industrial Relations Commission compare a certified agreement against a relevant award to determine whether the employees will be disadvantaged by the agreement. What is proposed is that all certified agreements (and Australian Workplace Agreements) would be lodged with the Office of the Employment Advocate. All these agreements will come into effect as soon as they are lodged. It is unclear at this stage whether the agreements are actually assessed to ensure that they do not disadvantage employees in comparison with the Australian Fair Pay and Conditions Standards.

The Government also plans to:

Exempt small business from the requirement to pay severance pay.
Introduce the Australian Safety and Compensation Council to implement national occupational health and safety standards and to pursue a national workers compensation system.
Introduce secret ballots for industrial action.
Introduce a single system of "right of entry" into workplaces.
Discourage pattern bargaining.
Review all award classification structures over the next 12 months.

When more information is released as to how and when this new system of industrial relations will be implemented, WorkSight will provide you with further advice on these changes. In the meantime the current system remains in place

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Dismissing Staff

How much is staff turnover costing you? (WF June 00)

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:

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

It is important to measure the turnover of staff (i.e. 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 e.g. 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 to discuss what you can do to improve your staff turnover rate.

How much notice do you need to give employees?

The Workplace Relations Act sets out the minimum amount of notice you are required to give your staff.

If an employee has been working for you for:

1 year or less	give 1 week's notice
More than 1 year but no more than 3 years	give 2 week's notice
More than 3 years but not more than 5 years	give 3 weeks notice
More than 5 years	give 4 weeks notice

In addition if the employee is over 45 years old and has worked for you for at least two years you must give them an additional week's notice.

Do you need to give three warnings before you sack someone?

No! There is no requirement that you give an employee three warnings before you dismiss them.

However, you cannot dismiss an employee unlawfully and if you have more than 100 employees, you cannot dismiss them unfairly. It is considered to be unfair if you do not give an employee any warning that you intend to dismiss them.

So what is fair? If you are not happy about their work tell them what is wrong and give them a chance to put it right. If you have raised your concerns with your employees and given them reasonable opportunities to improve their performance but they have still failed to do so you are in a better position to defend any unfair dismissal action brought against you.

If you are not sure how to deal with an employee who is not performing contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Dress Code

Establishing a dress code for your employees (WF August 99)

The Australian Industrial Relations Commission recently rejected an attempt by a major retailing company to dismiss a long standing employee because she did not abide by a dress code.

The company's dress code stated that employees could only wear up to two earrings in each ear. The employee in question had three in each ear and had had them for years. She refused to take them out and was sacked.

The Commission decided that the company was being harsh, unfair and unreasonable by sacking her. The Commissioner stated:

"To apply a new policy without compromise and to consequently terminate a good and longstanding employee is not sensible or justifiable."

This decision shows the importance of being reasonable to your employees. Whilst it is important to develop policies which make it clear what you expect, it is not reasonable to rigidly apply the policies when no harm is being done by the breach of the policy.

In this case, the employee was considered to be "exemplary" and her appearance was not considered to be offensive to the public. The company should have investigated ways to have reached a compromise with her.

If you are unsure how to deal with the dress, actions or behaviour of an employee contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Employee Records

WorkChoices Record Keeping (WF June 06)

In addition to significantly changing how workers are employed, WorkChoices has introduced strict record keeping requirements on employers.

The regulations require that all employers covered by the new system maintain the following records:

Name of employee.
Name of employer.
Date of birth of employee.
The name of each instrument (i.e. award or agreement) that sets out the employee’s employment conditions.
The classification of the employee under the relevant award or agreement.
Whether the employee is full time or part time.
The number of hours the employee works each week.
Whether the employee is permanent, temporary or casual.
The date they started work with the employer.
The employee’s daily start and finish times. NB: The Government is proposing to introduce amendments to the regulations so that employers do not need to keep these records for employees who have no existing entitlement to overtime. *
The total hours worked by the employee each day. NB: The Government’s planned amendments to the regulations would mean that employers do not need to keep these records for earning $55,000 a year or more.
The nominal hours the employee is required to work and any variation. *

*At this stage the planned amendments to the regulations have not been released. When the regulations are available we will advise you if there are any further changes to these provisions.

There are further regulations setting out record keeping requirements in relation to:

Pay records
Annual leave
Personal leave
Other leave
Superannuation
Termination of employment
Payslips

These provisions came into force from Monday 27 March 2006 although employers will not be prosecuted for failing to comply with these regulations for the first six months. After this six month grace period employers may find their records being audited by workplace inspectors and prosecuted if they fail to meet these requirements.

If you would like to receive WorkSight’s free Fact Sheet on employer’s record keeping requirements please contact us at information@worksight.com.au

As of 27 March 2006 all employers covered by the new national industrial relations systems are required to maintain the following records for all their employees for a period of 7 years:

Name of employee.
Name of employer.
Date of birth of employee.
The name of each instrument (i.e. award or agreement) that sets out the employee’s employment conditions.
The classification of the employee under the relevant award or agreement.
Whether the employee is full time or part time.
The number of hours the employee works each week.
Whether the employee is permanent, temporary or casual.
The date they started work with the employer.
The employee’s daily start and finish times.
The total hours worked by the employee each day.
The nominal hours the employee is required to work and any variation.

If the employee and employer agree to averaging weekly hours a copy of the agreement must be kept.

Pay records must include the following:

The “basis on which the employee’s rate of pay is determined”.
The gross hourly rate of pay.
Details of any “incentive-based payment, bonus, loading monetary allowance, penalty rate or other separately identifiable entitlement that the employee is entitled to”.
The period to which the payment relates.
The total pay during the period set out in terms of gross and net.
The date the employee was paid.
Any deductions made and the name of the fund or the account into which they were paid.

Annual leave records must include the following:

The rate of accrual of annual leave.
The date the employee was credited with the annual leave.
The balance of the employee’s entitlement.
The amount of leave taken by the employee.
The amount paid to the employee when the employee was on leave.

If an employee has elected to cash out any of their annual leave a record must be kept of the employee’s written request to cash out leave and also a record kept of how much was paid.

If an employee is a shift worker (and thereby entitled to an additional week ’s leave) a record must be kept of the periods when the employee was employed as a shift worker and when the employee was credited with the additional leave.

Personal leave records must include the following:

The rate of the employee’s accrual of personal leave.
The date the employee was credited with the personal leave.
The balance of personal leave for the employee.
The amount and type of personal leave taken.
The amount paid to the employee when the employee was on leave.

Other leave records must include the following:

The amount and type of leave taken and whether it was paid or unpaid.
The details of the employee’s accrual of the leave.
The date the employee was credited with the leave.
The balance of leave for the employee.
The amount paid to the employee when on leave.

Employees’ superannuation records must show the following:

The amount of contributions made.
The period over which the contributions are made.
The dates the contributions are made.
The name of the fund the contributions are paid into.
The basis on which the employer was required to make the contributions including the records of any election made by the employee as to which fund contributions should be made and the dates of any such election.

When an employee is terminated employers are required to keep records of whether the termination was by consent, or by notice or summarily or in some other manner (and specify the manner). In addition the name of the person carrying out the termination must be recorded.

Pay slips must show the following information:

Name of employee.
Name of employer.
The classification of the employee under the relevant award or agreement.
The date the payment covered by the pay slip was made.
The period to which the pay slip relates.
If the employee is paid at an hourly rate:

The ordinary hourly rate,

The number of hours paid at that rate, and

The amount of the payment made at that rate.

Even if the employee is not paid at an hourly rate, the rate paid at the latest date covered by the pay slip must be shown as an hourly rate.
The gross amount of payment.
The net amount of payment.
Any “incentive-based payment, bonus, loading monetary allowance, penalty rate or other separately identifiable entitlement that the employee is entitled to”.
Any deductions made and the name of the fund or the account into which they were paid.
If superannuation contributions were made, the details of the amount of contributions made during the pay period to which the pay slip relates and the name of the fund the contributions were paid into.

Employment Agreements

Workplace agreements protect you and your staff

If your business does not have an Award, Workplace Agreement or Australian Workplace Agreements you are leaving yourself open to misunderstandings and disputes about the your employment conditions.

Making a Workplace Agreement is not difficult. You need to spend some time with your staff working out the most appropriate employment conditions.

WorkSight can advise you on all the steps you need to take and can carry out all the requirements set down by the Workplace Relations Act .

Contact WorkSight for an explanation of what is involved, how long it will take and a quote.

What to put in a Contract or Agreement (WF September 99, updated March 05)

The following is a list of employment conditions that should be included in a contract or agreement:

usual hours of work and rest breaks
annual leave and leave loadings
public holidays
overtime payments
penalty rates
notice of termination
dispute settling procedures
personal/carer's, sick, family and bereavement leave
type of employment e.g. full time, part time, casual etc
rates of pay
long service leave
allowances
casual loadings
redundancy pay
stand-down provisions
jury service
superannuation

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Employment Benefits

What is the value of the personal use of a car? (WF June 00)

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

Establish the annual distance travelled.
Calculate the percentage of the total distance travelled which was for private use.
Establish the cost per kilometre for the type of vehicle e.g. by using the RACV rate.
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.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Employment Contracts

Get employment contracts signed

It is important to ensure that you put an employee's employment contract in writing, get the employee to sign and date it, give the employee a copy and keep one yourself. If the contract remains unsigned there is no proof that you ever gave it to the employee.

Are your staff contracts in writing?

You should always put your employment contracts in writing to ensure both you and your employee are clear what the conditions of employment are.

If you leave important issues such as pay, hours of work or the period of probation in the form of a verbal agreement (which is still a contract) it is far more difficult to prove what was said. It ends up being your word against your employee's. By putting employment conditions in writing there is less room for argument about what was agreed. And always give the employee a copy of the contract.

If you want to know what should be in an employment contract contact WorkSight.

When is a contractor really an employee? (WF December 99)

It is becoming increasingly common for employers to form contracts with 'independent contractors' to provide a service which a few years ago would always have been provided by an employee.

In some instances this merely reflects the changing nature of the workforce. In other cases it is because the employer does not want to take on the responsibilities of being an employer.

This can be a contentious issue. If the 'contractor' is really an employee the employer can become liable for WorkCover, payment of award level wages and other benefits, superannuation, and must operate within the requirements of the Workplace Relations Act (for instance, in relation to unfair dismissal).

Whilst there is no set test to determine whether a person is a contractor or an employee some of the signs of a contractor really being an employee include the following:

If the employer has a high level of control over the contractor e.g. in terms of hours of work, the work they carry out, how they do the work, whether the contractor has to ask the employer to take leave.
If the employer provides the contractor with the necessary equipment to do the work.
If the contractor is not allowed to delegate the work to anyone else.
If the contractor has not provided any capital or other resources to carry out the work.
If the contractor does not work for any other employer.
If the contractor does not have a say in how the work will be carried out.
If the employer pays the contractor in the form of wages (e.g. regular weekly or fortnightly payments, or deducts PAYE tax).

Merely stating that a person is a contractor does not stop the Australian Industrial Relations Commission or the Federal Court from deciding that a person is an employee.

A private employment contract (WF September 99)

A private employment contract can be either a verbal or a written contract. Even a casual chat with your worker agreeing their hours of work and wages is a contract. The problem with making a contract this way is that you have no proof of what you said. Always make employment contracts in writing. Also make sure the contract is signed and dated by both you and your employee.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Employment Policies

Why businesses need employment policies (WF December 98)

Many unfair dismissal actions occur because employers and employees do not know how to deal with disputes in the workplace.

For instance, if an employee is always getting to work at 9.15 am instead of 9.00 am like everyone else, is it fair to dismiss them? If you have never told them that arriving at 9.15 am is unacceptable you should not instantly dismiss them. You must make sure that staff know what you expect of them.

The best way to do this is to have written policies which state (for instance) when staff are expected to arrive at work and how you intend to deal with staff who need to be disciplined.

By setting your policies down it is clear to everyone what you expect. It is then far easier to discipline and, if necessary, sack those employees who are not abiding by those policies.

The Australian Industrial Relations Commission frequently tells employers that if they had written policies which clearly set out the employment conditions of their business and what they expected of their staff they might not have been found to unfairly dismiss staff.

The message is clear - protect yourself! Get policies into place! WorkSight has drafted a series of standard employment policies on issues ranging from absenteeism, stress and meal breaks to staff training, parental leave and sick leave. These can be easily adapted to suit your company.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Hiring Staff

Employment of children (WF March 04)

The employment of children is regulated by most State Governments throughout Australia, either directly through restrictions on employment or indirectly through restrictions in education and child protection legislation. Employers should ensure that they comply with any restrictions on employment where they are employing children as heavy penalties can apply if the legislative requirements are not complied with.

Victoria

Children are defined under the Community Services Act 1970 as being under the age of 15. Under this age children are expected to attend school rather than work. The current system requires any child under 15 not attending school to be exempted from school attendance and any child engaged in work to have a permit to do so. The permit for work is sought by the parent or guardian, and must be obtained before work commences.

Where a permit is granted, special conditions apply to protect children at work including the hours, the types of work and the situation in which the child will be employed. Permission from the school principal may also be required where the child will be employed during school term or from the Directorate of School where the child will no longer be attending school.

The regulation of children at work will, in the future, be subject to the Child Employment Act 2003 which, although it has been passed through Parliament, is yet to be proclaimed. This Act will retain the permit system with some exemptions.

New South Wales

In New South Wales, employers wishing to employ children under the age 15 must have authority to do so and if given authority must comply with a code of practice, which includes issues such as hours of work, travel to and from work, food and drink and supervision. Special provisions apply to the employment of children in door-to-door sales, the entertainment industry and the employment of babies.

New employees and WorkCover

The Victorian WorkCover Authority advise employers to ask all potential new employees in writing if they have any pre-existing injury that may be affected by the work.

Do you have an induction program?

How do you introduce new staff into your business? Do you:

ensure someone is there to greet them on their first day?
show them around the building they are working in?
introduce them to their fellow workers?
explain the background to the business (when it was established, how it has developed, what it does etc)
go through your expectations of their job?
show them where the local milk bars, sandwich shops, banks, bus or tram stops and train stations are?
explain what your code of conduct is (e.g. no swearing, fighting, sexual harassment etc)?
explain the safety aspects of their work if they are using machinery or chemicals?
have lunch with them?

And how long is your induction program for? Do you expect them to be settled in pretty well in the first couple of days or do you keep checking back with them for the first two to three weeks to ensure they understand what is required of them and are feeling comfortable in the workplace?

It is important to ensure that you give new staff a comprehensive induction program to make sure they get off on the right foot.

Appointing new staff is a costly and time-consuming business. Once you have chosen someone make sure you give them the best chance possible to succeed. If you don't give them all the information they need to settle in quickly and enjoy their work, you may find you lose them and then you have to start the recruitment process all over again.

How much is staff turnover costing you? (WF June 00)

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:

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

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

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. Contact us to discuss what you can do to improve your staff turnover rate.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Independent Contractors

When is a contractor really an employee? ((WF December 99)

It is becoming increasingly common for employers to form contracts with 'independent contractors' to provide a service which a few years ago would always have been provided by an employee.

In some instances this merely reflects the changing nature of the workforce. In other cases it is because the employer does not want to take on the responsibilities of being an employer.

Whilst there is no set test to determine whether a person is a contractor or an employee some of the signs of a contractor really being an employee include the following:

If the employer has a high level of control over the contractor e.g. in terms of hours of work, the work they carry out, how they do the work, whether the contractor has to ask the employer to take leave.
If the employer provides the contractor with the necessary equipment to do the work.
If the contractor is not allowed to delegate the work to anyone else.
If the contractor has not provided any capital or other resources to carry out the work.
If the contractor does not work for any other employer.
If the contractor does not have a say in how the work will be carried out.
If the employer pays the contractor in the form of wages (e.g. regular weekly or fortnightly payments, or deducts PAYE tax).

Merely stating that a person is a contractor does not stop the Australian Industrial Relations Commission or the Federal Court from deciding that a person is an employee.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Job descriptions

Why have job descriptions?

It is important for all businesses to have job descriptions for their employees. They do not need to be long, or complicated but they are necessary.

Job descriptions are the best way to ensure that you and your employee agree on what the job actually is (as opposed to the job the employee might like it to be!) It gives you a focus for any discussions about the job - how they are doing it, whether the job has changed or whether it should change.

Do not try to list absolutely everything an employee may ever possibly do in a job. A job description should concentrate on the main functions of the job. A job description which details more than 20 duties is far too long!

Frequently job descriptions include a statement at the end saying the employee is "to carry out any other duties as required." This often angers employees who see it as an excuse for their employer to get them to do the unsavoury jobs around a workplace. There is no need to include such a statement. As an employer you are entitled to ask your employee to carry out tasks which are reasonably related to their job and for which they have the necessary skills.

If you require advice or assistance in drawing up job descriptions for your staff contact WorkSight.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Leave entitlements

Compassionate Leave: What is it and who gets it? (WF September 06)

The Fair Pay and Conditions Standard now sets the minimum employment conditions for employees covered by the federal industrial relations system. All businesses in Victoria, the ACT and NT are covered by the federal system. In NSW, WA, Queensland, SA and Tasmania the only businesses that are still covered by the state industrial relations system are partnerships, sole traders and unincorporated businesses. (It should be noted that there is a case currently before the High Court which is looking at what type of businesses are pulled into the federal industrial relations system and what businesses remain in the state jurisdictions. WorkSight will keep you informed of developments in this area.)

The Fair Pay and Conditions Standard has introduced an entitlement to compassionate leave which replaces bereavement leave (this was only available to an employee when a family member died). By contrast, compassionate leave is available when a member of the employee’s immediate family or a member of the employee’s household dies or “has a personal illness, or injury, that poses a serious threat to his or her life”.

The definition of an employee’s immediate family is:

Spouse, child, parent, grandparent, grandchild or sibling of the employee, or a
Child, parent, grandparent, grandchild or sibling of the employee’s spouse.

The entitlement to compassionate leave is 2 days’ paid leave for full time employees (and pro rata for part time employees) on each occasion (i.e. on each death or personal illness that meets the definition). An employer can require an employee to provide evidence of the illness or death.

Employers should be aware that even if the award that applies to their business does not provide compassionate leave the Australian Fair Pay and Conditions Standard now sets that as a minimum entitlement and overrides the award (unless the award provides for a more generous entitlement of compassionate leave). For further information on this contact WorkSight on information@worksight.com.au

How much Personal Leave do you give your employees? (WF June 06)

With the introduction of the Australian Fair Pay and Conditions Standard from 27 March 2006, WorkSight has analysed 38 of the most frequently used federal awards to determine whether they meet these minimum standards. We have discovered that over 75% of them fail to meet the minimum standard of personal leave of 10 days paid leave for full time and part time employees. (Personal leave can be taken as sick leave or as carer’s leave and is cumulative.) This is an extraordinarily high rate of non-compliance and means that thousands of workers will have had a significant improvement in their employment conditions as a result of the introduction of these new standards.

WorkSight recommends that all businesses look at their awards to assess whether they do meet these standards. If they do not, the minimum standards override the award conditions and need to be implemented.

If you would like a copy of WorkSight’s free Fact Sheet on the Australian Fair Pay and Conditions Standard please contact us at information@worksight.com.au

Wage Increases

Widespread confusion over rates of pay (WF April 07)

We hope that with the next decision the Fair Pay Commission will be committed to the comprehensive provision of legally binding official rates of pay for all Pay and Classification Scales.

Increases in Allowances (WF December 06)

Whilst the Australian Industrial Relations Commission no longer is responsible for the increases to award rates of pay, it still controls the levels of allowances. Over the last few weeks it has increased some of the allowances in key awards such as the National Building & Construction Industry Award, the Roof Slaters & Tilers (Victoria) Award and the National Joinery & Building Trades Products Award. It is expected that allowances in other awards will follow soon. Unfortunately the Government website that sets out the new rates of pay (see “Pay Scales Website”) does not set out the allowances that are payable under awards. To get this information you will need to go to another new website of federal awards and agreements and preserved state awards and agreements. This database is not yet complete but it can be accessed at: https://www.workchoices.gov.au/ourplan/payconditions/search_for_award.htm

Pay Increases from 1 December 2006 (WF December 06)

The Australian Fair Pay Commission’s first minimum wage decision has increased minimum wages in awards for employees earning up to, and including, $699.96 a week by $27.36 a week (72 cents an hour). For employees earning more than $700 a week and over the increase is $22.04 a week (58 cents an hour). Apprentice wages are increased to maintain the existing relativity i.e. if the trade rate goes up by $27.36 per week then the apprentice increase will be the relevant percentage for that year level of $27.36. The decision is effective from 1st December 2006.

In addition, any awards that have not been adjusted for the 2005 safety net increase will be adjusted by $17.00 per week and then the rates will be adjusted for the 2006 Fair Pay Commission increase. This could mean that some employees will receive a weekly increase of $44.36 as a result of this decision.

This decision applies to all employees who are covered by the WorkChoices system except:

employees covered by Australian Workplace Agreements (AWAs) or certified agreements approved prior to the commencement of Work Choices; and
employees covered by preserved state agreements.

The rates of pay payable to employees covered by an individual or collective agreement made after Work Choices commenced (27 March 2006) must be paid at a rate that is at least equal to the relevant Pay Scale as increased by this decision which is usually the adjusted relevant award rate.

Having handed down its first decision, the Fair Pay Commission is now asking for submissions from the public on whether it should give further increases mid-2007.

Pay Scales Website (WF December 06)

The Government has just set up a new website that provides the new rates of pay under the most commonly used awards. The website is https://www.workchoices.gov.au/ourplan/payconditions/PayScaleSummariesA-C.htm

However, not all the awards are covered by this website and it does not set out the allowances that are payable in some awards. If an award that you use is not listed on this website you will need to calculate the new rates of pay yourself. You should not use the wage rates that are set out in awards in the WageNet website as these are no longer current.

Will award rates of pay go up or not? (WF September 06)

The Australian Industrial Relations Commission no longer has a role in setting the rates of pay in federal awards. The new WorkChoices system has passed that job over to the Australian Fair Pay Commission which is made up of 5 Commissioners. Instead of holding hearings on whether there should be increases to the award rates of pay (as the Australian Industrial Relations Commission did), the Commission has invited organisations and the public to make submissions to it and is currently undertaking a series of consultative meetings around the country to try to gauge the community’s views on:

The issues the public thinks the Australian Fair Pay Commission should take into account when it sets and adjusts wages.
How employees cope with low wages and what other factors impact on their income levels.
What influences people entering the workforce (for instance, level of pay, benefits or other assistance, family responsibilities, long term career prospects).
The public’s view of the provision of a safety net for the low paid.
How the Commission can ensure that the wage rates for juniors, trainees and people with disabilities are competitive in the labour market.

WorkSight has attended one of these sessions. At this meeting the Chair of the Fair Pay Commission, Professor Ian Harper, stated that he expected that the Commission would hand down its decision in late November 2006. It is not clear at this stage whether this decision will be to increase all award rates of pay or only the minimum rate of pay. However, employers should be aware that this decision could change the existing rates of pay. WorkSight will keep you informed of developments.

State Wage Cases (WF September 06)

Whilst the federal Industrial Relations Commission has been stripped of its role to decide on award rates of pay, the remaining State Industrial Relations Commissions have been busy over the last few months increasing the rates of pay for those businesses still operating under their jurisdictions.

Award rates of pay in NSW, WA and Tasmania have been increased by $20 a week, lifting the adult minimum wage in those states to $504.40 a week or $13.27 an hour (casual employees are entitled to a casual loading on top of this). The federal minimum wage is currently $484.50 a week.

The Queensland Industrial Relations Commission increased their state award rates of pay by $19.40 a week with the Queensland minimum adult rate of pay now being $503.80 a week.

The SA Industrial Relations Commission decided to increase its award rates by $17.00 a week for those earning up to $570.00 a week and $18.00 a week for those earning above that. The SA minimum adult wage is now $501.40.

Whilst this is creating a confusing range of rates of pay, it is important to remember that these decisions do not affect those businesses now operating in the federal industrial relations system. These rates only apply to state awards that still operate within the state systems.

State Wage Cases (WF June 06)

In a series of defiant gestures against the Federal Government’s attempt to introduce a single national industrial relations system, each of the state industrial relations commissions have decided to go ahead with their own State Wage Cases. In the past the Australian Industrial Relations Commission would hold an annual National Wage Case that would determine wage increases for employees covered by federal awards. The state industrial relations commissions of NSW, Queensland, South Australia, Western Australia and Tasmania would then adopt this decision and award identical increases to employees covered by state awards. However, with the introduction of WorkChoices, the Australian Industrial Relations Commission no longer has the power to determine wage increases. This is now the role of the Australian Fair Pay Commission. It has announced that it will hand down its first minimum wages determination between September and November 2006. The Federal Government has urged the state industrial relations commissions not to consider awarding state wage case increases until the Fair Pay Commission has decided what increases, if any, it thinks are appropriate.

However the state industrial relations commission did not accept the Government’s position and each commission has now started hearing arguments from unions and employers on what increases should be awarded. The result of this will be that those businesses that are not covered by the WorkChoices system and operating under state awards will probably find that their employees’ wages will be increased in the next few months. However, those employers covered by WorkChoices will not be affected by any such increases (even if they are still using preserved state awards). These increases will not affect any businesses in Victoria, the ACT or the Northern Territory.

2005 National Wage Case (WF July 05)

On 7 June 2005 the Australian Industrial Relations Commission handed down the 2005 national wage case decision awarding a $17.00 a week pay increase to all employees on award rates of pay. It also increased the minimum wage by $17.00 a week bringing it up to $484.40 a week.

Over the coming weeks and months federal awards will be varied to increase the award rates of pay. Awards cannot be varied within 12 months of the last national wage case increase.

The state industrial relations commissions will be holding their own state wage case hearings over the coming weeks. Generally, they follow the decision from the federal commission. If you are not sure whether the pay rates in the award that covers your business have been increased or not, get in touch with us at WorkSight and we will let you know.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Notice

How much notice do you need to give employees?

The Workplace Relations Act sets out the minimum amount of notice you are required to give your staff.

If an employee has been working for you for:

1 year or less	give 1 week's notice
More than 1 year but no more than 3 years	give 2 week's notice
More than 3 years but not more than 5 years	give 3 weeks notice
More than 5 years	give 4 weeks notice

In addition if the employee is over 45 years old and has worked for you for at least two years you must give them an additional week's notice.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Occupational health and safety

Prevention is a click away (WF December 04)

The National Occupational Health and Safety Commission (NOHSC) leads and coordinates national efforts to prevent workplace death, injury and disease in Australia. They have reported on a series of frightening statistics. For instance did you know that:

A worker is injured badly enough to put in a worker’s compensation claim every 2.4 minutes;
Over the next year, one in every 20 workers will suffer either a workplace injury or disease;
Every day, 50 young workers are injured seriously enough to be compensated; and finally,
2,200 workers die every year in Australia – 1,700 die on the roads.

For further information on their work and how to try to prevent and reduce such a shocking toll go to their website - http://www.nohsc.gov.au

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Part time staff

Public holidays and part time workers

Part time workers are entitled to be paid for those public holidays which fall on the days which they usually work. For instance if a part time employee works on Wednesday, Thursday and Friday they would get all the public holidays that fell on Wednesday, Thursday and Friday (e.g. Good Friday) but not those that fell on Monday and Tuesday (e.g. Easter Monday and Melbourne Cup Day).

Annual leave for part timers

The minimum amount of paid annual leave for a full time worker in Victoria is 4 weeks (i.e. 20 days of paid leave). For part time workers they get 4 weeks pro rata. This means that if they work 2 days a week they are entitled to 4 weeks x 2 days - i.e. 8 days of paid annual leave a year.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Probation

It is always important to put a new employee on an initial probationary period to give you and the employee time to establish whether the job and the person will fit. It is equally important to ensure that the employee is fully aware that they are on a probationary period and the date that the period will end. This should always be put in writing prior to the employee starting work.

If you think that there may be a chance that you will want to extend the probationary period at the end of the initial period you should also put this in writing prior to the employee starting work (i.e. that an extension of the probationary period is an option).

Companies with more than 100 employees can make use of the 6 month qualifying period provided for under the Workplace Relations Act. During this period the employee can be dismissed without being entitled to access the unfair dismissal provisions of the Australian Industrial Relations Commission.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Public holidays

Public holidays and part time workers

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Rewards

Birthday leave (WF June 01)

How do you and your staff celebrate birthdays at work? An increasing number of employers are giving employees a day off on their birthday! In some agreements this is to replace a local public holiday or a union picnic day. It certainly saves on someone having to go out and buy a cake!

How do you reward your staff? (WF December 00)

Many employers like to stick with the tried and tested standard employment conditions (4 weeks annual leave, 1-2 weeks sick leave, public holidays, overtime etc). However, increasing numbers of employers are looking into innovative ways to reward their staff which they hope will increase their staff's loyalty to their business.

Some of the recent non-standard employment conditions that have been introduced include:

Subsidised gym membership
Paid maternity leave
Free fruit
Massages at work
On-site health assessments
Free financial advice
Three month career breaks
Cash bonuses for good ideas
Time off for family or sporting activities
Pay increases in return for waste reduction
Carer's rooms for employees' children fitted out with work stations, toys and TV with earphones
Keep in touch programs when employees are on extended leave
Lunch time seminars on work and family issues
Additional leave for employees with good attendance records

Employers who introduce these practices are aiming to become 'employers of choice' i.e. their employees want to work for them rather than regarding it as just a job.

If you are interested in developing innovative employment conditions contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Sexual harassment

What is sexual harassment? (WF December 00)

Sexual harassment is :

Unwelcome behaviour of a sexual nature and it is reasonable in the circumstances that the person who was harassed felt offended, humiliated or intimidated.

Sexual harassment can include:

Pornographic pictures displayed in the workplace
Jokes of a sexual nature
Unwelcome physical contact
Leering, whistling, suggestive comments
Asking questions about sexual conduct
Comments about an individual's body, sexual behaviour or preference
Unwelcome physical contact
Sexual assaults
Obscene or offensive phone calls.

Every workplace should have a sexual harassment policy which sets out:

What sexual harassment is
The employer's intolerance of sexual harassment
The disciplinary steps which will be taken when sexual harassment occurs
Procedures for dealing with complaints

Not having the procedures in place to address problems when they arise can lead to problems being swept under the carpet because they are too hard or trying to develop a complaints procedure on the run. Develop a policy now so that if you do need it, it'll be there ready for you.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Staffing

Who is your staffing expert?

Every business has an accountant and many businesses have a solicitor they can call on when needed. But who advises you on your most important resource - your staff?

WorkSight provides a specialist advice service to small and medium sized businesses on everything to do with how you employ your staff. This can range from:

How much you should pay your staff.
Employment contracts and agreements
Job descriptions
Performance appraisal
Discipline
Whether your staff should be employed as part time or casual

So next time you have a staffing problem or issue call WorkSight and we will provide you with the advice you need, when you need it.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Superannuation

Choice of Funds (WF April 05)

All employers must ensure they are aware of the implications of the introduction of the requirement to give employees a choice as to which superannuation fund their contributions go into. The choice of funds legislation comes into effect on 1 July 2005. The Australian Tax Office plans to mail an information pack to all employers in April 2005. Make sure you keep an eye out for it to ensure you understand your obligations from 1 July 2005.

Superannuation and travel allowances (WF December 01)

After a long running case the Australian Industrial Relations Commission in October decided that travel allowances paid under the National Building & Construction Industry Award 2000 and the National Joinery & Building Trades Products Award 1993 should be included in the definition of 'ordinary time earnings'.

This means that superannuation would be calculated on the allowance as well as the hourly rate. In making this decision the Commission also decided that this would be backdated until 30 April 2001.

However since then the decision has been appealed and a stay has been placed on it. This means that it is not to be implemented until the appeal has been heard. Despite the stay the Commission has set down strict conditions on employers covered by these awards to ensure that the money will be available to pay the additional superannuation if the appeal is dismissed.

Any employer covered by these awards should contact WorkSight for further advice.

Superannuation up to 9% (updated March 05)

Largely, provision of superannuation contributions for Australian wage and salary earners is governed by the federal Superannuation Guarantee (SG) legislation. The SG legislation requires employers to contribute, currently, an amount equal to 9% of an employee’s ordinary time earnings into an approved superannuation fund.

Superannuation - who must you pay it to? (WF December 99, updated March 05)

You are required by law to pay 9% superannuation to all your employees except those:

Earning less than $450 in a month
70 years old or over
Under 18 years old and working 30 hours a week or less
Working outside Australia for a non-resident employer
Foreign executives who have been specifically exempted
Carrying out domestic work or work of a private nature for 30 hours or less a week
Working as members of the Defence Reserve Forces

Superannuation is also compulsory for those contractors who are covered by Prescribed Payments System (of tax) and are principally providing labour.

Finally, it must be remembered that superannuation is paid in addition to an employee's wage not out of it!

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Unfair dismissal

Pregnant worker’s dismissal “case study for unfair dismissal laws”: NSWIRC (WFI April 05)

In a case described by the NSW Industrial Relations Commission as “an archetypal case study for the protection provided by unfair dismissal laws”, a childcare worker was awarded compensation of $15,175.Shortly after informing her employer that she was pregnant and intended to take maternity leave, the woman received a letter from the employer setting out 17 instances of unsatisfactory job performance or conduct. The woman provided a written reply, refuting all 17 allegations, and at the same time submitted her application for maternity leave. Without further discussion, the employer dismissed her and claimed that it had done so because of the issues it had raised in the letter.

The Commission found the allegations relating to performance and conduct were mainly inconsequential or spurious and were not backed up by any documentary evidence, nor had the employee been made aware in the past of any issues that were likely to place her employment at risk. It held that she was dismissed on the basis of her pregnancy and because she attempted to make arrangements to take maternity leave.

The employer raised the work performance issues as an attempt to intimidate her into not returning to work after her maternity leave. There was no valid reason for her dismissal and the manner of it was harsh, unreasonable and unjust.

Reinstatement was inappropriate given that an acrimonious work environment was likely to occur, so compensation of $15,175 was awarded.

Casuals unfair dismissal - update (WF April 02)

In our December newsletter we advised the Federal Court had determined that all casual employees could have access to the unfair dismissal laws and the Australian Industrial Relations Commission if they were dismissed. Immediately following this decision the Federal Government made amendments to the Workplace Relations Regulations to ensure that casuals with less than 12 months service with an employer could not claim unfair dismissal. The new regulations commenced on 7 December 2001.

The Government is currently attempting to have these regulations confirmed in legislation.

Employers should be aware that where they have employed a casual employee for 12 months or more that employee does have access to the Australian Industrial Relations Commission and the unfair dismissal laws if they are dismissed.

Changes to unfair dismissal laws

The Federal Government has recently introduced changes to the unfair dismissal laws for those businesses covered by the new Work Choices national industrial relations system.

Employees employed on or after 27 March 2006 in a company with more than 100 employees now have to serve a 6 month qualifying period before they can have access to the unfair dismissal laws.

This means that they can be dismissed within the first 6 months of their employment and are prevented from starting an action of unfair dismissal against their employer.

In addition if an employer of over 100 employees, dismisses an employee for a "genuine operational reason" (this includes economic or structural or technological reasons) the employee cannot make a claim of unfair dismissal (however they may try and the Australian Industrial Relations Commission would need to determine if there was a genuine operational reason).

Finally, businesses with 100 or fewer employees are not subject to the unfair dismissal provisions of the Workplace Relations Act.

Alcohol at work

In this case the employee:

had been working for the company for 25 years,
had a good employment record,
was over 50 years old,
had very limited skills, and
was unlikely to find another job.

In addition the Commission noted that the employee had sufficient long service and annual leave to allow him to be on leave for the 6 month period during which his license was suspended.

For these reasons the Commission felt that a lesser penalty than dismissal was appropriate and ordered for him to be reinstated.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Unlawful dismissal

What is unlawful dismissal? (WF December 98)

Unfair dismissal refers to the sacking of an employee in a situation which is considered to be harsh, unjust or unreasonable. Unlawful dismissal refers to a series of actions which are always illegal.

It is unlawful to sack an employee because of the employee's:

Temporary absence from work because of illness/injury
Membership of a trade union or activity within the union
Non-membership of a trade union
Filing of a complaint against the employer
Race, colour, gender, age, marital status, sexual preference, physical or mental disability, religion, pregnancy, family responsibilities, political opinion, national extraction, social origin
Refusal to negotiate an Australian Workplace Agreement
Representation of other employees
Absence from work during maternity or paternity leave

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Work and family

Striking the balance with work and family (WFI April 05)

A new project to examine the work/family balance titled Striking the Balance: Women, Men, Work and Family was announced by the Human Rights and Equal Opportunity Commission on 8 March 2005.

The project will be conducted by federal Sex Discrimination Commissioner Pru Goward who said it was time to bring all of the elements of this important discussion together to better understand the pressures facing women and men in their efforts to combine their paid work and family responsibilities.

In undertaking the project, the Commission aims to encourage institutional and cultural change to ensure families are properly supported in balancing their multiple responsibilities.

The Commission will consult widely with all relevant groups, including government, unions, employers and employer organisations, men’s and women’s community groups and Australian families themselves. Public submissions will be sought following the release of a discussion paper in the first half of 2005.National wage

Pregnant worker’s dismissal “case study for unfair dismissal laws”: NSWIRC (WFI April 05)

Reinstatement was inappropriate given that an acrimonious work environment was likely to occur, so compensation of $15,175 was awarded.

Family Leave Test Case (WF September 04)

The Australian Industrial Relations Commission has just started hearing a test case brought by the ACTU that aims to significantly increase the amount of family leave employees are entitled to. The ACTU is seeking four key improvements in employment conditions. These are to:

Allow parents up to two years unpaid leave after the birth of a child.
Allow parents to work part-time for up to five years until children are at school.
Give parents more flexibility in working hours so that parents can cope more easily with school or childcare pick up and drop off times.
Allow parents to take up to six weeks additional leave to deal with school holidays.

This leave would be unpaid. However in order to assist employees in budgeting, their annual salary would be reduced by the equivalent of six weeks pay and the remaining salary would be averaged out over the year. This provision has been in place in many public sector workplaces for well over a decade.

No decision in this case is expected for several months.

Child-minding in the workplace (WF December 04)

A NSW hair and beauty salon has recently introduced a free on-site childminding service to staff returning to work from maternity leave in a workplace development that brings the family right into the workplace. Apparently this salon has provided a child minding service to their clients for years but now it has been extended to their own employees.

The owner recognised the difficulties facing hairdressers wanting to return to work after maternity leave and was fully aware of the difficulties she faced replacing staff when they resigned. In an effort to ensure she retain her staff she has renovated one of the salon’s rooms into a nursery complete with a room for babies to sleep! In addition to employing hairdressers she also employs a child minder! This shows that innovative ideas to balance work and family life are not restricted to large companies.

Balancing work and family (WF August 03)

The ACTU has launched a test case in the federal commission to give federal award employees more flexibility in their working lives so they can better balance their family responsibilities The ACTU is aiming to gain the right:

for women to work part time after they return to work from a period on maternity leave
to request flexible working hours
to have additional unpaid leave of up to 6 weeks
to take emergency family leave, and
to have unpaid parental leave of 24 months (up from 12 months).

The Industrial Relations Commission is currently hearing the case. A decision is not expected for some time.

If you are interested in discussing how to introduce "family friendly" employment conditions for your employees contact WorkSight for advice on how to do it.

If your business operates in New South Wales the NSW Office of Industrial Relations has a detailed practical guide on how to introduce family friendly employment conditions for your employees. It sets out the benefits, options and legal requirements for a variety of employment conditions. This can be downloaded from their website at http://www.workandfamily.nsw.gov.au/strategy/guidebook/default.html

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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Work Choices

The new national Work Choices system was introduced on 27 March 2006. This system has radically transformed the regulation of industrial relations.

For details of these changes please refer to Changes to the IR system in this list of topics.

For more information and advice contact WorkSight on 03 8371 0071 or 02 8211 2775 or e-mail information@worksight.com.au
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