What are the big HR issues for SMBs in 2025?

What are the big HR issues for SMBs in 2025?

Latest News & Events

What are the big HR issues for SMBs in 2025?

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Hey everyone, 2025 is already shaping up as another big year of legal change so we are running a free webinar to give you the heads up on what the big issues are this year. 
Headlining that list is the new criminal offence of wage theft and the Voluntary Small Business Wage Compliance Code that became operative from 1 January. 
But there is lots more with changes already happening with a number of awards, people being able to prosecute unfair contract claims next month, the new positive duties regarding psychosocial hazards and sexual harassment to really kick in plus more to talk about.
Joining me to discuss all of that is the wonderful Jessy Warn from HR Gurus who are specialists in helping SMBs with PEOPLE STUFF with NO FLUFF.
They have just celebrated their 15th birthday so they aren’t new kids on the block – they know their stuff.
See you there.

 

 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

1300 108 488

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

More award changes from Aged Care Work Value Case

More award changes from Aged Care Work Value Case

Latest News & Events

More award changes from Aged Care Work Value Case

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The Fair Work Commission has made further variations to awards in the aged care sector as part of the Aged Care Work Value Case which delivered a minimum 15% increase to aged care workers last year, The new variations involve wage increases, new classification structures and transfer of coverage of some aged care workers from one award to another.

Background

One of the key areas of reform for the Albanese Government has been that of wage equality.

It is nearly two years now since the Fair Work Commission was given the powers to conduct work value reviews for industries where the workforce is predominantly female such as aged care, nursing and midwifery, children’s services and early education.

The Aged Care Work Value Case is well advanced now – into Phase 3 of changes – which have seen significant wage increases and revisions of classification structures and award coverage over the past year.

This latest batch of changes continues that process.

Increases to award wages

In the Stage 3 decision of the Work value case – Aged care industry, an Expert Panel for pay equity in the Care and Community Sector determined that minimum wage increases will apply to:

  • All workers covered by the Aged Care Award 2010, except Head chefs/cooks
  • Home care workers providing services to an aged person covered by the Social, Community, Home Care and Disability Services Industry Award 2010

The increases will take effect from the first full pay period starting on or after 1 January 2025. The amount of the increase varies according to an employee’s award and classification.

A further increase will apply for some direct care workers from the first full pay period starting on or after 1 October 2025.

Coverage changes – nursing assistants

From 1 January 2025, nursing assistants who provide care services to aged persons in either the aged care industry or the home care sector under the Nurses Award 2020  will have their award changed to either the Aged Care Award 2010  or the Social, Community, Home Care and Disability Services Industry Award 2010.

They are also eligible for the wage increases referred to above

New classification structures for direct care workers

From 1 January 2025, direct care workers in the Aged Care Award 2010  and Social, Community, Home Care and Disability Services Industry Award 2010, as well as nursing assistants whose coverage has changed to these awards, will have a new, separate 6-level classification structure setting out the qualifications and experience defined at each level.

How can we help?

If you need assistance with interpreting  awards and the effects of these changes in award provisions for your business, we can help.

Just give us on 1300 108 488 to arrange your free first consultation.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

1300 108 488

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

Changes to entry level award classifications

Changes to entry level award classifications

Latest News & Events

Changes to entry level award classifications

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The Fair Work Commission has undertaken a review of entry level classifications in 45 modern awards and that is resulting in some key changes.

What’s changing?

The Fair Work Commission has decided that, where entry level provisions in modern awards had pay rates below the level of the federal minimum wage, they can only apply for a limited period while a new employee with no industry skills and experience learns their new job. 

The length of the limited period varies between awards but is most commonly 3 months and none allow for more than 6 months. 

Awards which just have changes to introductory level rules

These awards have variations from 1 January 2025:

  • Airline Ground Staff Award
  • Amusement Award
  • Animal and Veterinary Services Award
  • Australian Government Award
  • Dry Cleaning and Laundry Award
  • Fitness Award
  • Food and Beverage Manufacturing Award
  • Funeral Award
  • Graphic Arts and Printing Award
  • Joinery Award
  • Live Performance Award
  • Manufacturing Award
  • Marine Tourism and Charter Vessels Award
  • Meat Award
  • Pest Control Award
  • Port Authorities Award
  • Textile, Clothing, Footwear and Associated Industries Award
  • Timber Award
  • Travelling Shows Award
  • Vehicle Award

Plus the changes in the Horticulture Award take effect from 1 April 2025

Awards which have changes to minimum rates and introductory level rules

These awards have variations from 1 January 2025:

  • Air Pilots Award
  •  Aquaculture Industry Award
  • Architects Award
  • Business Equipment Award
  • Cement, Lime and Quarrying Award
  • Children’s Services Award
  • Concrete Products Award
  • Cottin Ginning Award
  • Electrical, Electronic and Communications Contracting Award
  • Rail Industry Award
  • Seafood Processing Award
  • Sugar Industry Award
  • Wine Industry Award
  • Wool Storage, Sampling and Testing Award

Plus the changes in the Pastoral Award take effect from 1 April 2025.

Enterprise Agreements

If an organisation has an enterprise agreement in place, they still have to pay new employees at least the new introductory rates that apply under modern awards from 1 January 2025 or 1 April 2025 as applicable. 

How can we help?

If you need assistance with interpreting  awards and the effects of these changes in award provisions for your business, we can help.

Just give us on 1300 108 488 to arrange your free first consultation.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

1300 108 488

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

Free webinar on Voluntary Small Business Wage Compliance Code

Free webinar on Voluntary Small Business Wage Compliance Code

Latest News & Events

Free webinar on Voluntary Small Business Wage Compliance Code

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We’re kicking off our free webinars on “Navigating Fair Work, Modern Awards, Positive Duties and all that people stuff” in 2025 with a timely one on the new Voluntary Small Business Wage Compliance Code designed to help you ensure that you don’t get found to be guilty of wage theft.

Who should attend? 

While the code is specifically designed for and only legally applies to most employers with less than 15 employees, the principles that it sets out are relevant to any employer.

If you have 15 or more employees, spending time looking at the “relevant matters” that the Code prescribes and seeing how you stack up against them is worthwhile. After all, these are the things that the Fair Work Ombudsman and the Courts will be considering in cases involving underpayment of wages and entitlements.

About the presenter

Peter Maguire is an acknowledged expert on workplace relations compliance and has been advising employers large and small across all sorts of industries for over 30 years.

He has a practical approach to managing people and compliance issues and is especially known for his creative abilities to come up with innovative solutions to common problems or to find a pathway for dealing with unusual ones.

So Peter is well equipped to help you navigate this new element of Fair Work compliance.

Bookings

 Places are limited so reserve your place at https://www.trybooking.com/CXXQI 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

1300 108 488

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

Voluntary Small Business Wage Compliance Code released

Voluntary Small Business Wage Compliance Code released

Latest News & Events

Voluntary Small Business Wage Compliance Code released

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Wage theft becomes a criminal offence from 1 January 2025 but small businesses will have some protections if they comply with the Voluntary Small Business Compliance Code which has just been published by the Fair Work Ombudsman.

What’s changing?

From 1 January 2025, “wage theft” will become a criminal offence.

The penalties for a corporation with 15 or more employees found to have engaged in wage theft will be:

  • if the court can determine the underpayment, the greater of 3 times the amount of the underpayment and $7.825 million, or
  • if the court can’t determine the underpayment, $7.825 million. 

And for an individual found to have engaged in wage theft, they will be:

  • up to 10 years’ imprisonment and
  • if the court can determine the underpayment, the greater of 3 times the amount of the underpayment and $$1.565 million, or
  • if the court can’t determine the underpayment, $1.565 million. 

Cases of criminal prosecution for wage theft will be referred to the Commonwealth Director of Public Prosecutions or the Australian Federal Police for consideration and prosecution where appropriate.

That won’t happen with small businesses which are deemed to be compliant with the Voluntary Small Business Compliance Code.

What is required to comply with the Code?

The Code  sets out relevant matters that are to be considered in determining whether an employer is compliant with the code. These are whether the employer has done any or all of the following:

  1. Made reasonable efforts to ascertain correct rates of pay and entitlements for the employee;
  2. Made reasonable efforts to stay up to date with the employer’s obligations relating to the payment of applicable amounts to, on behalf of, or for the benefit of, the employee;
  3. Considered and relied on information about the employee that the employer reasonably believed was accurate (such as the employee’s role, duties, classification, relevant qualifications, age, hours of work and location of work) in relation to the payment of applicable amounts to, on behalf of, or for the benefit of, the employee;
  4. Sought information or advice from reliable sources in relation to the payment of applicable amounts to, on behalf of, or for the benefit of, the employee;
  5. Provided information that the employer reasonably believed was accurate in seeking that information or advice;
  6. Taken reasonable steps to rectify the failure to pay the applicable amount after becoming aware of the failure;
  7. Cooperated with any relevant inquiry or investigation by the Fair Work Ombudsman after becoming aware of the failure to pay the applicable amount.

Additionally, consideration may be given to any other circumstances relating to the failure to pay the applicable amount or how the employer became aware of the failure.

Download the Fair Work Ombudsman publication “A guide to paying employees correctly and the voluntary small business wage compliance code”

What does this mean for small businesses?

As with many other legal obligations in business, there is a need to ensure that you have access to competent professional advice.

That is made fairly explicit in the Code at item #4 above which states: “sought information or advice from reliable sources…..”. Among those listed in the Code as reliable sources are “professional industrial consultants” which would include HR consultancies like us which have a strong level of knowledge and experience in workplace relations law like the Fair Work Act and Regulations and modern awards.  

And for larger businesses?

Where underpayments have been detected, an employer can self report to the Fair Work Ombudsman and enter into a “Compliance Partnership”, one effect of which is that they won’t be prosecuted for wage theft.

Civil penalties still apply

The fact that a small business might be technically compliant with the Code or that a larger business might have self-reported and entered into a compliance partnership does not mean that the Fair Work Ombudsman will not apply to the Courts for civil penalties and these are significant:

  • for an individual:
    • $19,800 per contravention
    • $198,000 per contravention for some ‘serious contraventions’
  • for a company with less than 15 employees:
    • $99,000 per contravention
    • $990,000 per contravention for some ‘serious contraventions’
  • for a company with 15 or more employees:
    • $495,000 per contravention
    • $4,950,000 per contravention for some ‘serious contraventions’.

 The Fair Work Ombudsman can also impose on the spot fines via Infringement Notices for deficiencies in compliance with requirements regarding record keeping and payslips. Thes fines can be up to:

  • $1,980 per breach for an individual
  • $9,900 per breach for as company

How can we help?

At Ridgeline HR. we have a long history of assisting clients with navigating the intricacies of the Fair Work Act and Modern Awards.  We can help businesses large and small and of any sector to assure their Fair Work compliance. We have been doing that since 2000.

We can help you with every one of the relevant matters set out in the Code and we can even draw up a Compliance Statement about how your business assures ongoing satisfaction of each of the relevant matters in the Code and your legal obligations to your employees.

If you inadvertently make mistakes, we can help you to calculate underpayments and fix them and assist you in negotiations with your employees and with the Fair Work Ombudsman.

If any of that is or interest or you have some other HR issue that you need help with, give us on 1300 108 488 to arrange your free first consultation.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

1300 108 488

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

Industry Specific Redundancy Schemes 2

Industry Specific Redundancy Schemes 2

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Industry Specific Redundancy Schemes 2

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In the first of our blogs on industry specific redundancy schemes, we explored ones that have a different definition of a redundancy. In this one, we look at ones which have higher levels of redundancy pay than the NES provides for or which have specific redundancy provisions for small business employers. 

What is an Industry Specific Redundancy Scheme?

The Fair Work Act 2009 provides that the National Employment Standard (NES) on redundancy is displaced by an industry specific redundancy scheme where that is provided for in a modern award or an enterprise agreement. These schemes existed prior to creation of the relevant modern awards and have just been carried over into modern awards. They can have different rules and different levels of entitlement to those prescribed in the National Employment Standard and we unpack those differences below.

Awards with a higher pay entitlement

There are two main modern awards that we are dealing with when we talk about higher redundancy entitlements than those provided for in the NES, those are the Black Coal Mining Award 2020 and the Mobile Crane Hire Award 2020.

The Black Coal Mining Award prescribes that employees who are made redundant are entitled to:

  • a severance  payment of one weeks’ pay for each year of continuous service plus
  • where the redundancy is due to technological change, market forces or diminution of reserves, a redundancy payment of 2 weeks wages for each completed year of service to a maximum of 30 weeks.

So an employee covered by the Black Coal Mining Award who is retrenched due to a downturn in trade after 5 years service would get 5 weeks severance payment and 10 weeks redundancy payment – a total of 15 weeks as compared to the 8 weeks that applies under the National Employment Standards to other workers.

The Mobile Crane Hire Award provides a higher total payout of 3 weeks per completed year of service with a maximum of 27 weeks’ pay, hit has a different definition of redundancy and it provides a range of notice payments for people with less than 12 months service that don’t apply under National Employment Standards.

Small business redundancy

The NES exempts small businesses (meaning businesses with 15 or less employees) from the requirement to make redundancy payments to an employee who is retrenched. There are a number of awards which have industry specific clauses that remove that exemption. These awards are the:

  • Mannequin and Models Award 2020
  • Manufacturing and Associated Industries and Occupations Award 2020 (furnishing employees only)
  • Textile, Clothing, Footwear and Associated Industries Award 2020
  • Joinery and Building Award 2020; and
  • Timber Industry Award 2020 (except the pulp and paper sector)

These awards provide for redundancy payment of up to 8 weeks for employees of small business employers in those industries/sectors.

How can we help?

At Ridgeline HR, we have a long history of assisting clients with navigating the intricacies of the Fair Work Act and Modern Awards and we can help businesses to manage their obligations to employees in practical and compliant ways.

If you need assistance with this or an other aspect of PEOPLE BUSINESS, give us a call on 1300 108 488 or email enquiries@ridgelinehr.com.au

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

1300 108 488

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH