FWO publishes underpayment remediation guide

FWO publishes underpayment remediation guide

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FWO publishes underpayment remediation guide

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We have one of the most complicated systems of employment and wages regulation in the world and we now have a criminal offence of wage theft and greatly increased civil penalties that you can be sanctioned with if you get it wrong. So what do you need to do to get it right? Or to fix it if you make a mistake. 

Important heads up

If you make an innocent mistake, you are not going to be prosecuted for wage theft as long as you do the right thing and fix it and you put in place what you need to so as to make sure it doesn’t happen again.

However, there are substantial civil penalties for non-compliance with Fair Work requirements re wages and entitlements and it has been made very clear that “I didn’t know” is not going to be tolerated by the Fair Work Ombudsman as an excuse.

It also becomes a matter of public record and that can be extremely damaging to your brand both as a business and as an employer.

Two important guides

The Fair Work Ombudsman has published two really valuable guides for employers:

  • A Guide to paying employees correctly and the Voluntary Small Business Compliance Code sets out 5 key areas for business with less than 15 employees to attend to and protect themselves from the risk of prosecution for wage theft – part of that is ensuring that you have someone internally or externally who can provide you with competent advice on Fair Work, minimum wages, modern awards, record keeping requirements and more;
  • Their Payroll Mediation Program Guide sets out in great detail what they expect employers who have found themselves to be in an underpayment of wages situation to do – it does run to 42 pages so you might want someone who knows this stuff to give you the short version of it

What are the penalties?

They can be huge – even the lowest tier for record keeping and payslip breaches can be as much as $1,980 per breach for an individual and $9,900 per breach for a company. At the most serious level, they could be over $8,000,000 for a company.

Conclusion

No employer can afford to not have someone who they can rely on to provide them with the right advice on their wage and other employer obligations, whether that be through an internal HR resource, membership of an employer or industry association membership which provides such a service or through appropriately experienced and knowledgeable employment lawyers or workplace relations consultants like us.

Please call us on 0438 533 311 or email enquiries@ridgelinehr.com.au if you want to explore how we might be of assistance.

 

 

 

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Dealing with the positive duty to prevent sexual harassment

Dealing with the positive duty to prevent sexual harassment

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Dealing with the positive duty to prevent sexual harassment

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As people will be aware, there has been a huge amount of publicity on the subjects of sexual harassment and gender inequalities in recent times and there are significant changes that have happened or are about to happen in multiple jurisdictions.

Arrival of positive duties

One of those changes is the relatively new positive duty to prevent sexual harassment, sex discrimination and gender-based behaviours which became enforceable under the Commonwealth “Sex Discrimination Act 1984” in December 2023.

The Australian Human Rights Commission has compliance and enforcement powers whereby it can enter workplaces for inspections, interview staff and initiate prosecutions for breach of that positive duty.

We have also seen new positive duties to eliminate or control risks associated with psychosocial hazards which include sexual harassment and gender-based behaviours become operative in most States and Territories of Australia under Workplace Health and Safety laws. It has recently been announced that this will happen in Victoria late this year and there is already a panel of Psychosocial Hazard Worksafe Inspectors operating in Victoria.

What difference do positive duties make?

The traditional approach to dealing with such issues as sexual harassment has been to have a policy to express commitments, procedures for dealing with issues and training to educate people on expectations and then to act on any complaints or breaches reported.

That has proven to be ineffective in preventing sexual harassment.

The positive duty means that organisations now have to conduct risk assessments to determine whether there are any hazards that give rise to risks of sexual harassment and related behaviours and, if there are any such hazards, to implement appropriate control plans, much as has been required for physical WHS risks for many years.

Risk factors in construction

Here are some of the risk factors that are featured in publications by the AHRC:

·       most of your workers are men

·       most of the supervisors or managers in your workplace are men

·       your business involves interacting with third parties (such as clients, customers and/or others)

·       you employ casual staff and/or workers on short-term contracts

·       your workplace is very hierarchical

·       your workplace lacks diversity

·       your workplace is isolated or remote

·       your workplace is divided by gender (for example, women in the office, men ‘on the tools’)

·       alcohol is consumed, especially at work social events

·       you and/or your staff do not understand sex discrimination, sexual harassment, and other unlawful behaviours

·       disrespectful behaviour is generally accepted or common in your workplace

·       you don’t have a policy or code of conduct which sets expected standards of behaviour

·       you have not responded appropriately or held people accountable for unlawful behaviours in the past (or have not applied a policy or code of conduct consistently).

How many of those risk factors are present in your workplace? If you are in civil construction, probably most of them.

The Australian Human Rights Commission Framework

The AHRC has developed a set of 7 standards for complying with the positive duty in preventing and responding to sexual harassment and related behaviours and these are:

1.    Leadership

2.    Culture:

3.    Knowledge

4.    Risk management

5.    Support

6.    Reporting and response

7.    Monitoring, evaluation and transparency

There is some excellent guidance material available at https://humanrights.gov.au

The Leadership Standard

Of those 7 standards, the one that has been called out as the most important is “Leadership” because that is where it all starts.

The standard describes the leadership responsibilities as follows:

1.     Senior leaders understand their obligations under the Sex Discrimination Act and have up-to-date knowledge about relevant unlawful conduct.

2.     Senior leaders are responsible for ensuring that appropriate measures for preventing and responding to relevant unlawful conduct are developed, recorded in writing, communicated to workers and implemented. Senior leaders regularly review the effectiveness of these measures and update workers.

3.     Senior leaders are visible in their commitment to safe, respectful and inclusive workplaces that value diversity and gender equality. They set clear expectations and role model respectful behaviour.

‘Senior leader’ refers to any person with responsibility for the management and governance of the organisation or business.

In a small organisation or business, this will usually be the owner and any manager.

In larger organisations and businesses, this will usually include the board (or equivalent), chief executive officer (CEO), executive leadership team (ELT), partners or executive manager.

Senior leaders hold ultimate responsibility and accountability for the governance and legal compliance of their organisation or business.

They are responsible for their own actions, the actions of those who they lead and influence, allocation of resources, oversight of compliance and shaping the broader workplace culture.

They set the ‘tone from the top’ – meaning that what they say and do gives a strong message to workers about what is acceptable, important and valued.

What the Australian Institute of Company Directors has to say

The Australian Human Rights Commissioner called on the AICD to help in education of directors about sexual harassment, its drivers and things that they need to be doing to meet their duties as directors in this context.

The AICD has developed: “A director’s guide to preventing and responding to sexual harassment at work”. In essence, it follows the 7 standards published by the AHRC. It also notes some really important questions that Boards should be considering including:

·       Do all directors have an adequate understanding of workplace sexual harassment and its drivers?

·       Are you confident directors’ personal communication styles and behaviour model the desired culture?

·       Do you discuss this at board level?

·       Are you comfortable that the board understands the dynamics and prevalence of sexual harassment in the organisation and how it relates to the organisational culture?

·       Does the board, or relevant board committee, consider workplace sexual harassment risks in overall risk management and governance?

So, you can see that the expectations of senior leaders go a long way beyond just putting policies in place – they need to be leading from the front and that starts at board level.

The Queensland development

From 1 March 2025, if a risk has been identified, employers must also implement a comprehensive, written prevention plan that identifies risks, control measures for managing these risks if elimination is not practicable and the process for consulting with employees during its development.

Employers will need to consider specific worker, workplace and work environment characteristics, such as lack of diversity or isolated work, which may heighten the risk of sexual harassment and sex or gendered-based harassment occurring in their workplace.

In essence, this means that any business needs to conduct a risk assessment in line with regulations and the Code of Practice and develop a control plan on how each identified risk will be mitigated.

This applies to all Persons Conducting a Business or Undertaking which has people working in Queensland.

New jurisdictions at the Fair Work Commission

The FWC has been able to issue stop sexual harassment orders for some years, but it isn’t a jurisdiction that saw a lot of activity for the simple reason that, unless the alleged perpetrator was still working in the organisation, there was essentially nothing to stop, and often cases could fail to result in any action on jurisdictional grounds.

If the alleged sexual harassment happened after 6 March 2023, the FWC can also conciliate on sexual harassment disputes and either issue a certificate to allow a court application to proceed or arbitrate itself and has powers to award compensation among other things. 

Conclusion

The challenge starts with senior leadership in our organisations which means, in an industry such as ours, it predominantly starts with the men in those senior leadership roles, whether on boards or executive teams in larger organisations or business owners and managers in smaller ones.

And the process starts with understanding the truths about sexual harassment and gender-based behaviours, what drives them and what impacts they have on people plus what your obligations as a senior leader involve.

Beyond that, it is playing your part individually and collectively to drive the cultural change that is necessary to make the industry a psychologically and emotionally safe place for people and women in particular.

Who is up for that challenge?

This article was originally produced for CCF Victoria’s Bulletin publication.

Please call us on 0438 533 311 or email enquiries@ridgelinehr.com.au if you want to explore how we might be of assistance.

 

 

 

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The results are in – what next?

The results are in – what next?

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The results are in – what next?

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The Albanese Government has had a landslide victory at the federal election – so what does that mean for employers?

One thing that this resounding election victory for Labor signals is that we have certainty about what the future of federal government looks like for at least the next 2 terms.

The Liberal/National Coalition is in disarray and its agenda, attitude and culture have been emphatically rejected by the Australian people.

I believe that our democracy is healthier when we have a strong Liberal Party as a responsible and influential balance in Parliament. So this is a sad state of affairs and it does mean that it will be years before we can hope for that to happen with what they have left in the Parliament.

So what does that mean if you are an employer?

Accept reality

If you were banking on the cavalry arriving via the return of a coalition government, forget it – it ain’t happening and won’t be for the foreseeable future.

So, all of those changes that Labor has made to employment laws in the last 3 years and which have flown on to modern awards are here to stay.

The right to disconnect (which for most businesses isn’t really a problem if they understand properly how it works) is staying.

Wage theft as a criminal offence (which is only a problem for someone who knowingly and deliberately rips employees off) is staying.

Employee expectations about flexible and hybrid working are also here to stay judging by the public backlash against the Coalition’s rhetoric on getting people back to the office and their subsequent and embarrassing backflip on that policy.

The demographic has shifted – we now have more millennials and Gen Zs and younger than Baby Boomers in the workforce and they are demanding honesty and transparency and purpose. So it is time to rethink your value proposition as an employer if you are going to attract and retain the talent you need and have a productive and happy workforce.

What else is coming?

The Albanese Government has already done most of what it wants to do in relation to changes to employment laws.

It has already forecast two areas for change:

  • The prohibition on restraint clauses in employment contracts for people whose remuneration is less than the High Income Threshold; and
  • Legislating protections of penalty rates due to some employer associations making application to the FWC to vary awards via annualised wage arrangements that might provide relief from penalty rates

There are also further reviews going on in the Fair Work Commission relative to Gender Wage Equality and with respect to “work and care” and they could deliver more changes in the next year or two.

The other area that businesses of all sizes need to be paying attention to are the positive duties which have come into play federally in relation to the prevention of sexual harassment and gender-based behaviours and, by State or Territory, in relation to the elimination or control of psychosocial hazards

In Queensland, the positive duty to prevent sexual harassment etc has also been subject to State legislation with all businesses having to assess risk sand put in place control plans by 1 March 2025.

What employers need to do

We developed our HEART model to provide simple guidance on the steps that organisations now need to take to be able to demonstrate true compliance in the new positive duty regime. It provides a roadmap for transparency and engagement as well as for effective compliance.

HONESTY

Educate yourself about what psychosocial hazards and sexual and other forms of harassment and discrimination are. Then have a good hard and honest look at yourself, your policies and practices and your peoples’ behaviour.

ENGAGEMENT

Consult with your people, educate them and listen to what they have to say. Build a culture of collaboration and shared interest.

ACCOUNTABILITY

Develop and implement positive policies and practical procedures to drive positive changes in language and behaviours and hold everyone responsible for playing their part.

REVIEW

This isn’t a transaction – it is a continuing journey and you need to continue to monitor and measure progress in collaboration and partnership with your people.

TRUST

Exercise empathy and vulnerability in leadership. Encourage and recognise diversity and peoples’ contributions and perspectives. Build trust, ensuring psychological safety for all.

Conclusion

We think that the election outcome is a victory for Australin culture and it has no doubt been fuelled by rejection of what we are seeing happening overseas and especially in the USA. We don’t want to be like that.

It is also a great opportunity for all leaders in business to take stock of exactly how aligned their workplace behaviours are with the desired Australin cultures.

Rather than thinking of the positive duties that have been introduced as just more compliance burdens, look at them as opportunities to explore, reflect and improve workplaces to be the best that they can be…..where people want to work.

If you would like to explore ways to take positive action to deal with all of these challenges, check out our suite of PosWork services at poswork.com.au or call us on 0438 533 311.

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What are the big HR issues for SMBs in 2025?

What are the big HR issues for SMBs in 2025?

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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.

 

 

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Free webinar on Voluntary Small Business Wage Compliance Code

Free webinar on Voluntary Small Business Wage Compliance Code

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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

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ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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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

0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH