Are you paying your employees correctly?

The Fair Work Commission has been reviewing modern awards. Various awards have already been updated and released on 4 and 14 February 2020 with further updates scheduled for 13 April and 4 May 2020. It is important to ensure you understand your awards and the changes that will affect how you pay your employees. 

So what's changing?
According to fair work, the biggest change will be the use of plain language and simple layouts that will result in awards that are easier to read and understand. 

You can find a full list of the awards and the dates that are changing by visiting the Fair Work site.

Changes to Annual Salaries are coming too! 
There is also a change coming for annual salaries. If you pay an annual salary to an employee, you need to be able to ensure their annual salary is not less that their minimal entitlement under the award. You may have seen in the media lately about Coles and George Calombaris underpaying staff. This is on the Fair Work radar, with most businesses with at least one staff employed under an annual salary arrangement, the risk to business owner is high. 

So, what do business owners need to do?
There are a few things business owners can do to ensure they are complying with this change:

• Ensure full-time staff document the hours worked each pay period in writing or electronically - this will allow HR to ensure the annual salary for the employee meets the requirements of the award. 
• Run reports comparing employee salaries with the award and update if needed. 
• Ensure you understand your award so that you cover everything that is included in the annual salary. For example, ensuring overtime and penalty rates are included. 
• Sign up for Fair Work emails updates at https://www.fairwork.gov.au//staying-up-to-date

Business owners are responsible for ensuring that they comply with current awards as there are significant penalties for not complying with changes. Be sure to check your award on a regular basis.

The Money Edge is here if you find yourself needing help, so don't be afraid to reach out! 

The Money Edge | Bundaberg