Monday 27 November - Creating Confidence In How People Are Paid

Payroll Compliance: Leave accrual changes in the ACT for Workers Compensation

There are different workers compensation laws for:

• Each state and territory
• Commonwealth employees.

Whether an employee is entitled to accumulate or take leave during a period of workers compensation will depend on the workers compensation law that applies to them.

Section 130 of the Fair Work Act 2009 says that employees aren’t entitled to accumulate or take leave during a period of workers compensation unless the workers compensation law permits it.

ACT - From 9 June 2023

The Workplace Legislation Amendment Act 2022 (ACT) changed the operation of the workers compensation laws in the ACT.

This means that from 9 June 2023, annual leave and LSL can accumulate during workers compensation.

Before 9 June 2023

No. Annual leave and LSL leave didn’t accumulate during workers compensation.

Payroll Compliance: Understanding the new fixed term contract regulations

Introduction to New Regulations

Starting December 6, 2023, significant changes will be implemented regarding the engagement of employees on fixed term contracts. This article provides a detailed guide on what these changes entail and how they will impact both employers and employees.

Fixed Term Contract Basics

Fixed term contracts are those that terminate at the end of a specified period. From the specified date, employers must adhere to new regulations when engaging employees under these contracts.

Mandatory Fixed Term Contract Information Statement (FTCIS)

A key change is the introduction of the FTCIS. Employers are required to provide this statement to employees before they commence employment or as soon as possible thereafter. The FTCIS will be available for download from our website starting December 6, 2023.

New Limitations on Fixed Term Contracts

These limitations, effective from December 6, 2023, include:

1. Time Limitation: A fixed term contract, including extensions and renewals, cannot exceed a duration of 2 years.
2. Renewal Limitations: Contracts cannot be extended or renewed more than once, nor can they be structured to extend the total employment period beyond 2 years.
3. Consecutive Contract Limitations: Employers are restricted from employing someone on a new fixed term contract for mainly the same work without a substantial break, especially if the total employment period exceeds 2 years or if the contract includes options for extension or renewal.

Exceptions to the New Rules

Certain situations exempt employers from these limitations, such as contracts requiring specialised skills, training arrangements under state or territory laws, essential work during peak demand periods, emergency circumstances, high-income employees, government-funded contracts, governance positions, and specific award provisions.

Consequences of Non-Compliance

Contracts that fail to comply with these new regulations will no longer have a valid end date, although other terms and conditions, including entitlements from any relevant legislation, award, or agreement, will still apply.

Free Australian Payroll Association - Payroll Did you know Webinar

Gain an understanding of the support offered through the Australian Payroll Association helpdesk as Jasmine Fernance delves into common (and uncommon!) queries asked by our members.

Webinar Date & Time: Dec 8, 2023 11:00 AM

Register Here: Click Here

How payroll can shine in the spotlight

In the dynamic world of business, payroll managers play a crucial role, though their contributions are often unsung. As a payroll manager, showcasing the value of your role is not just about executing tasks efficiently, it’s about demonstrating how your work positively impacts the broader business objectives. Here are some effective strategies to highlight the value of payroll to your boss.

1. Streamlining processes for cost efficiency: One of the most tangible ways to demonstrate value is by optimising payroll processes. This includes automating routine tasks, reducing manual errors, and ensuring compliance with tax laws and regulations. By presenting data on time saved and errors reduced, you can clearly articulate how these improvements contribute to cost savings and operational efficiency.
2. Providing strategic insights from payroll data: Payroll data is a goldmine of insights. As a payroll manager, you can analyse trends in labour costs, overtime, and employee benefits to provide strategic recommendations. Presenting these insights in the context of business performance and goals illustrates how payroll is not just a cost centre, but a source of strategic business intelligence.
3. Enhancing employee satisfaction and engagement: A smooth payroll process directly impacts employee satisfaction. Demonstrating how your efforts in ensuring accurate and timely salary disbursements contribute to employee morale and engagement can be a strong point. Additionally, implementing user-friendly payroll systems and addressing employee queries effectively showcases your commitment to employee experience.
4. Ensuring compliance and risk mitigation: The complexity of payroll related compliance cannot be understated. By effectively managing compliance and staying updated with the latest changes and regulations, you mitigate risks associated with payroll. Highlighting this aspect of your role underscores the importance of payroll in safeguarding the company’s reputation and financial health.
5. Fostering cross departmental collaboration: Payroll interacts with various departments, including HR, finance, and IT. Demonstrating how you collaborate across these departments to streamline processes and improve data accuracy can highlight your role in fostering interdepartmental synergy. This not only shows the integral role of payroll in the organisation but also your capabilities as a collaborative leader.

?In summary, payroll managers can demonstrate their value by optimising processes, providing strategic insights, enhancing employee satisfaction, ensuring compliance, and fostering collaboration. By articulating these contributions in the context of business goals, payroll managers can step into the spotlight and get the recognition they deserve.

Payroll Coffee Connect Session - Melbourne

We are delighted to be part of Ramco Systems and Advanced upcoming Payroll Coffee Connect in #melbourne. The topic the panel with explore focuses on - Payroll, uncovering the hidden costs to business.

Tuesday 28 NovemberTime: 08:00 - 10:30

Register Here - https://lnkd.in/gtWNzh6d

FWC rules on application for an equal remuneration order

In December 2022, a number of significant changes to the Fair Work Act 2009 (Cth) (FW Act) came into effect as a result of the Fair Work Amendment (Secure Jobs, Better Pay) Act 2022.

The changes included updates to the Fair Work Commission’s (FWC’s) ability to make an equal remuneration order (ERO) if it considers that there is not equal remuneration for men and women workers for work of equal or comparable value. In summary:

• the FWC is now empowered to make EROs on its own initiative (as well as on application);
• there are now express provisions identifying the matters that may be taken into account in deciding whether or not there is equal remuneration; and
• the FWC is now required to make an ERO (as opposed to having the discretion to make one) if it finds, on application, that there is not equal remuneration for work of equal or comparable value.

In addition to this, there is a requirement for an Expert Panel to be constituted to deal with such applications. In July this year, an Expert Panel was constituted to deal with the first application for an ERO since the changes came into effect.

In the matter of Sabbatini v Peter Rowland Group Pty Ltd [2023] FWCFB 127, a former chef made an application for an ERO on the basis that she performed work of equal value to that of three male chefs in her workplace, but was paid a significantly lower salary than them.

After considering the evidence, the Expert Panel was of the view that there was not equal remuneration for work of equal or comparable value. She had been paid a salary that was $15,000 less than her male counterparts even though she was performing work of equal value, and she had been offered full-time employment six months after the others, which meant that she had lost out on full-time earnings for that period.

However, the Expert Panel did not make an ERO on the basis that:

• The application was not validly made under the FW Act. This was because the FW Act permitted only “an employee to whom the order will apply” to make an application. As she was no longer employed by the employer, she was not an employee to whom the order would apply.
• Further to this, the Expert Panel considered that even if it considered making an ERO on its own initiative, it could not do so because, as she was no longer an employee, such an order would not apply to her.

Lessons for employers

This decision is note-worthy as we expect these types of applications will become more prevalent in the future, particularly given the prohibitions on pay secrecy that also came into effect in December 2022. Evidently, they can only be made by current employees and not former employees.

Information provided in this blog is not legal advice and should not be relied upon as such. Workplace Law does not accept liability for any loss or damage arising from reliance on the content of this blog, or from links on this website to any external website. Where applicable, liability is limited by a scheme approved under Professional Standards Legislation.

Author: Athena Koelmeyer | Workplace Law

Payroll Question & Answer

Question.

Do I need to pay redundancy to my employee?

Answer.

If an employee’s job has been made redundant and you cannot offer your employee another suitable role, then the employee may be eligible for redundancy pay. Most permanent employees are eligible for redundancy pay. Those who usually do not qualify include:

• Casual employees
• Employees of a small business
• Anyone who has been employed for less than a year
• The conclusion of a fixed-term contract or an apprenticeship is not considered a redundancy.

How much redundancy pay an employee receives is calculated according to the number of years they have been employed minus any periods that do not count towards continuous service.

Employees are paid their base weekly rate of pay at the time that they are made redundant. It does not include extra amounts like allowances, penalty rates, loadings or bonuses (unless the award or agreement states otherwise)

Australian Payroll Training Calendar: 2023-24

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Australian Payroll Association