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?
In June 2023 the Fair Work Commission’s Expert Panel handed down its Annual Wage Review decision increasing minimum rates in Awards, having an operative date from the first full pay period on or after 1 July 2023. We have also seen a raft of changes to the Fair Work Act including flexible work arrangements, upcoming restraints on fixed term contracts and the sunsetting of zombie agreements. 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 significant 5.75% 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 recommends you review the arrangement to ensure that:
Make sure you get it right and contact one our Workplace Relations Senior Consultants, who can help you with a review of your employment contracts, IFAs and/or undertake an audit of your Payroll system and if required, calculate any amounts owing.
The South Australian Business Chamber Business Acceleration Program – Industrial Relations Update:
To help you understand what proposed changes to Industrial Relations might mean for your business, and to provide you with a reminder of the changes that have already taken place this year, the South Australian Business Chamber invites you to join Industrial Relations experts Kathryn Rees and Karen van Gorp for a special edition of the Business Accelerator Program on Wednesday 6 December 2023.
Register here – Members only – limited seats – filling fast
How we can help:
If you are unsure of how the changes will impact your workplace or the employment arrangements and you are a the South Australian Business Chamber member, contact our Business Advice Hotline on (08) 8300 0000 (select option one).
No problem is too big or too small and our Senior Consultants are also on standby to provide you with workplace advice regarding Awards or any other workplace support you may need. Call today on (08) 8300 0000 and speak with one of our highly experienced Senior consultants.
