Are Your Employment Contracts Compliant?
As can be determined by the recent publication regarding a high-profile retail outlet, Woolworths said it has discovered about 5,700 salaried staff across its supermarkets and Metro stores had not been paid in full as set out in the General Retail Award. The retail giant has estimated the one-off impact of the underpayment could be in the range of $200 million to $300 million before tax, given that the issue goes back as far as 2010 retail Industry Award (GRIA)
Have your contracts Checked
· It is crucial that employers with salaried contracts properly reconcile their employee’s pay
· Ensure salaried arrangements do not fall below minimum entitlements under the relevant award
· Employers with enterprise agreements are correctly applying the terms of the agreement and are no less than the applicable award minimum if worked
Public Holidays are not included in 25% over award
· If you as an employer believe the 25% over award salary that compensates for overtime and identified allowances for salaried employees covers the working of public holidays then you have a potential non-compliance exposure
· If salaried employees work public holidays then they either have a day in lieu allocated and taken or it is added to annual leave as per the award when prescribed.
· Non salaried award employees when working public holidays are compensated at 250% of base rate
· Unless contracts specify an additional allowance over and above the 25% covers the working of public holidays and is no less than the award would provide for the same you avoid non-compliance claims
With more and more high-profile underpayments being identified nationally in random or planned Fair Work Inspections now is the time to have your industry association check and advise on your contracts. Under payments and breaches will impact your bottom line.
The Role of the THA
The Tasmanian Hospitality Association in its role within and across the industry including, Hotels/Motels, restaurants/ cafes and clubs are proactive and continue to impress upon all organisations the importance of ensuring businesses large and small are fully aware via education, awareness and support services of all employment compliance requirements. Further to this THA have conducted and continue to do so industry forums around the state with education and support tools ensuring Fair Work compliance if assessed.
Take away messages??
1. Have your contracts and pay rates checked and reconcile hours worked and paid against the award to avoid underpayment claims
2. Check your award and ensure you pay no less than the minimum prescribed in the relevant award/s
Enquires; Contact Merv Saltmarsh on 0407869924 or merv@tha.asn.au
