Monday 30 January - Creating Confidence In How People Are Paid

Newsbite: Significant shift for Long Service Leave in NSW

Employers should be looking at how they track their employees’ entitlements to long service leave in NSW, following a decision by the Court of Appeal which overturned the previous understanding of how the Long Service Leave Act 1955 (NSW) applied to employees who have moved between States or countries during their continuous service (Wipro Limited v State of New South Wales [2022] NSWCA 265; Clayton Utz acted for the successful employer).

Long service leave: the problem with crossing borders: Long service leave is determined by the legislation in each State or Territory. This made a lot of sense when nationwide employers were fairly rare. These days, where an employer can cross borders, and employees can too during the course of their employment, multiple laws might be in play.

In NSW previously it was viewed: you look at whether an employee has continuous service and if that continuous service has a substantial connection to New South Wales. Wipro example. The employee had been employed in India for six years, and then transferred to NSW. He worked in NSW for four years before resigning. He argued that as he had spent 40% of his time with his employer based in NSW, his continuous service had a substantial connection, and so he was entitled to LSL under the NSW understanding.

There are two key points from the Court of Appeal’s decision:

• “The performance of service within New South Wales is an obvious connecting factor” but there may be other factors connecting the service to the State. For example, the contract might have been made in NSW, or the employer in NSW might have directed the employee work outside it.
• “A ‘substantial connection’ between the ‘continuous service-’ [is] to be assessed by reference to the service when it occurs rather than retrospectively on cessation of the service.” The employee in this case had two separate periods of employment: six years overseas, and four years in NSW. To determine his long service leave, only his four years in NSW counted.

The result is that while a substantial connection between the continuous service and NSW might be created by where a contract was made, it won’t necessarily be made by a deployment decision, even one that lasts for years.

The Court acknowledged that there will be cases which are not as clear-cut as this one, but said that this approach would make it easier for employees to know their long service leave entitlements, and encourage employers to keep track of them. We would also suggest to seek legal advice if you are not sure how this ruling impacts your employees.?

2023 Australian Payroll Survey

Australian Payroll Association is pleased to invite you to respond to our?annual payroll survey.

As a leading organisation in the payroll industry, we have conducted payroll benchmarking surveys annually since 2012. This year, we aim to gain a more comprehensive understanding of current trends and developments in the payroll field.

Participation in the survey is expected to take no more than seven minutes of your time.

Australian Payroll Association will provide a $500?training?voucher to ten randomly selected individuals who complete the survey.

All respondents will receive a detailed report including analysis, trends, technology and salary data for 2023.?It will be emailed to your nominated address by 15 March.

Note that all responses will be consolidated and analysed in aggregate, and no personal identifying information will be used.

Your participation in this survey is greatly appreciated.

You can?complete the survey?until 5pm Tuesday 28 February 2023.

Payroll talent updates from Tracy Angwin

I regularly get calls from employers asking me if I know anyone for their payroll job or what they should be paying their current team.

It’s impossible to efficiently share payroll industry data and insights by having one to one conversations.

My goal in 2023 is to make sure we keep you regularly updated with payroll industry information, not just when you need payroll talent or are looking for your?next career move.

So we don’t bombard people not interested in this, I invite you to?opt in?to receive information on the payroll talent market.

This includes;

• Changes and trends we are seeing in the payroll industry;
• Survey results including our annual salary survey;
• Exclusive job opportunities you won’t find anywhere else or advertised.

Opt in here:

Payroll Talent Updates

Newsbite: Overtime and penalty rates for IT and engineering industries

For payroll professionals in the IT and engineering industries, it is important to be aware of a recent decision made by the Fair Work Commission (FWC) that will require employers to pay overtime and penalty rates to employees covered by the Professional Employees Award. The decision proposed significant amendments to existing clauses in the award, which the FWC claims do not meet the modern awards objective. The main amendment removes uncertainty over what classifies as ‘ordinary hours’ for employees covered by the award, eliminating the need for employers to take those hours into account when setting annual remuneration.

The FWC has defined 38 hours per week as the standard for ‘ordinary hours’, which means employers will be responsible for paying overtime for hours worked outside of that window, at standard hourly rates. Additionally, penalty rates have been established for work conducted before 6am or after 10pm on any day Monday to Saturday, at 125% of the standard rate, and 150% for work conducted on Sundays or public holidays. Employers will need to keep records of all hours worked outside of the 38-hour workweek, before 6am or after 10pm between Monday and Saturday, and on Sundays and public holidays.

It is important to note that these requirements will not apply to employees who earn 25% or more of the minimum wage for their relevant classification under the award. Additionally, the FWC acknowledges that these amendments may increase wage expenses and compliance costs for employers, however, it is possible that the enhanced entitlements will increase workforce participation.

Australian Payroll Association regularly provides specialist training on?Understanding Modern Awards.?Members with specific questions relating to to this, please contact the?payroll helpdesk.

Payroll Questions & Answers

Question. If an employee terminates and does not give notice can I deduct the amount from their wages?

Answer. It will depend on the employee’s award or agreement. Many Awards say that in certain circumstances an employer can deduct up to one week’s wages from an employee’s pay if they do not provide the minimum amount of notice. Where an award or agreement allows this, an employer can only deduct pay from an employee’s wages under the award, not from other entitlements.

Click here to learn more and purchase tickets: Purchase Tickets.

Australian Payroll Association