Could a Work Trial help your Recruitment Process?
Do you have trouble selecting and retaining the right employees for your business? Are your management processes constantly interrupted with staff turnover, recruitment and training? To take your recruitment process one step further and to potentially avoid the employment of an unsuitable applicant, you could explore the use of work trials.
A work trial is official employment for one shift and you are under no obligation to continue the employment relationship after assessing their suitability during that one minimum shift. You are also under no obligation to give feedback or explain the reason for your decision.
We recommend getting legal assistance to ensure that the work trial agreement is in writing and signed by both the employer and the job applicant, who is treated as an employee for that period. The employee will need to complete the Tax File Number Declaration which you then submit to the Australian Taxation Office. They also need to provide enough personal details to enable a Payment Summary to be provided to them at the end of the financial year. The employee is then included in the payroll, and the amount they are paid is classed as wages.
Due to the small amount of wages earned in one shift, no PAYG tax may need to be withheld unless they are not claiming the tax free threshold. As the gross wages are not likely to reach the threshold of $450 during the month, superannuation may not need to be paid either.
During this work trial, the job applicant is treated as an employee and is entitled to all of the benefits of your specific Award, Enterprise Agreement and/or Employment Contract. Different awards under the Fair Work Australia Act require different minimum shifts, for example, the minimum shift under the Restaurant Award is two hours but the minimum shift under the Hospitality Award is three hours. You will need to refer to the Award that you are using to check your obligations.
Considering both the time-cost and monetary-cost of recruitment and training, the relatively small outlay of one trial shift per short-listed applicant may reveal exactly what you need to know before making the right decision. If the hourly rate is $25.00, a three-hour shift would only incur wages of $75.00.
If you would like further information please talk to your Human Resources Department, Fair Work Australia or your local solicitor. If your business does not have an internal HR Specialist, we suggest using the services of an external HR service provider, such as EmploySure.
There are many Human Resource service providers including EmploySure, Ayers, Workforce Guardian, Perform HR and Harrison Human Resources who can help you build a recruitment process that works for your business. EmploySure also provides insurance for their advice and can be contacted through their website: www.employsure.com.au
Amanda Wolff | Bookkeeper | The Money Edge | Bundaberg