Do you have employment contracts or individual flexibility agreements (IFAs) in place with your staff?
When was the last time they were reviewed or when was the last time you undertook an audit of your Payroll system to make sure you are paying your staff correctly?
Last week, the Fair Work Commission’s Expert Panel handed down its Annual Wage Review decision increasing minimum rates in Awards and the National Minimum Wage by 3.75%. The decision has an operative date from the first full pay period on or after 1 July 2024. We have also seen a raft of changes to the Fair Work Act recently due to the Closing Loopholes legislation. These changes all mean that now is a crucial time to review your employment arrangements to ensure they remain compliant
For those employers who have been paying above Award rates, this year’s 3.75% increase to minimum award rates could have resulted in your rates no longer being above Award. This means the Award provisions may surpass those of the employment contract or IFA, resulting in your employees no longer 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. Furthermore, there can be implications for superannuation, payroll tax and workers compensation premiums as well. It makes good sense to undertake an audit of your Payroll system to make sure payments are being made correctly to your employees.
If your employment contracts or IFAs have been in place for more than a year or two, the South Australian Business Chamber (SABC) recommends you review the arrangement to ensure that:
How We Can Help:
You can’t afford to get it wrong! South Australian Business Chamber’s team of Consultants are experts in industrial relations and can work with you to conduct an audit on your payroll system, review your contracts, IFA’s or Agreements to ensure your compliance.
Our team or Workplace Advisors are also on standby to provide you with advice on rates of pay, Modern Award classifications and more.
Contact our Business Advice Hotline on (08) 8300 0000 (select option 1) and we will make sure you are not at risk of a costly underpayment.
