Employment Relations -Business Improvement Update
WHAT HAPPENS IF AN EMPLOYEE WORKS BEYOND THE OUTER LIMITS? • Where the outer limits are exceeded, the HIGA will provide that such hours worked are not covered by the annualised wage, and in addition to the annualised wage payment made, an employer is required to pay the hours worked beyond the relevant HIGA rates of pay. • A copy of the THA Wage Rates, indicating the relevant base, penalty and overtime rates for each classification level can be accessed on the THA member portal. RECONCILIATION The HIGA will require employers to conduct reconciliations: • After each 12 months of the annualised wage arrangement, or • Within any 12-month period upon the termination of employment of the employee or termination of the agreement, • With any shortfalls identified to be paid within 14 days. • This new obligation builds upon existing provisions which require an employee not to be disadvantaged by an annualised salary. CHANGES TO REQUIREMENTS OF WRITTEN AGREEMENTS Will require annualised wage agreements to specify: the annualised wage payable; • Which provisions of HIGA will be agreed to be absorbed in the annualised wage (noting these are now limited to – minimum rates, allowances, overtime, penalty rates, annual leave loading, and additional public holiday arrangements); and • The applicable outer limits.
ARE THERE ALTERNATIVES TO SALARIES?
• Yes. The potential cost impact and complexity of these changes may prompt employers to reconsider the practicality and efficiency of paying employees pursuant to an annualised wage arrangements and instead pay employees by another means. The alternatives available include: • Paying full-time employees on an hourly rate basis, with penalty rates, overtime, and allowances being paid separately. WHAT SHOULD EMPLOYERS BE DOING TO PREPARE? Employers subject to the Hospitality General award and or the Restaurant Industry Award that have current employees on non-managerial annualised wage arrangements should: • Ensure that payroll systems and processes can accommodate outer limit payments that may need to be made in any given pay period. • If not already in place, establish processes to reconcile salaries each year or sooner upon the termination of employment. • Ensure that accurate records are being made of working times, including breaks of annualised wage employees, and that these records are signed and acknowledged by the employee as correct in each pay period. • For existing salary employees – If you wish to continue using an annualised wage arrangement, prior to September 1, obtain their agreement to amend their employment terms. • For new salary employees – ensure the contract of employment offered contains terms compliant with the new arrangement (e.g., in accordance with those outlined in the template contracts. Important; Give consideration as to whether it is more practical to cease annualised arrangements and replace them with hourly rate or other arrangements.
Enquires? Contact Merv Saltmarsh E: merv@tha.asn.au Ph: 0407869924
UPDATING CONTRACTS For existing employees and new employees
• Templates amending an existing employee’s annual wage or new employee can be provided by THA and or accessed on the THA Member portal.
23 Tasmanian Hospitality Review Oct/Nov Edition
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