Do you have employment contracts or individual flexibility agreements (IFAs) in place with your staff? When was the last time they were reviewed? Modern award rates of pay and allowances have recently been increased by the Fair Work Commission as a result of the annual wage review.
This year’s increase was substantially higher than previous years and therefore your previous arrangements including above Award payments may no longer result in your employees being better off and therefore being unintentionally underpaid.
The longer an underpayment goes undetected, the more difficult and expensive it becomes to rectify when it is picked up. There can also be implications for superannuation, payroll tax and workers’ compensation premiums as well.
If your employment contracts or IFAs have been in place for more than a year or two, the South Australian Business Chamber recommends you review the arrangement to ensure that:
Contact our Business Advice Hotline on (08) 8300 0000 or register your enquiry here.
