Probation ain’t what it used to be

Probation ain’t what it used to be

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Probation ain’t what it used to be

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One of the most common questions that we get asked is what an employer needs to do if they want to dismiss a new employee during their probation because it isn’t working out …. our answer might surprise you.  

If I sack someone when they are on probation, I’m protected from an unfair dismissal claim, right?

The answer is that you probably are but not specifically because they are on probation.

That used to be the case under the Workplace Relations Act 1996 which preceded the Fair Work Act 2009.

Back then, the legislation actually provided for probation periods of up to 3 months or longer if the technical requirements of the role justified it and there was a legislated exemption from unfair dismissal claims for employees on probation……..but that all went out with the Fair Work regime.

So what are the rules now?

Under the Fair Work Act, employees have to serve a qualifying period of service with an employer before they are eligible to make an unfair dismissal claim and that is:

  • 6 months in the case of an employer with 15 or more employees (simple headcount including full-time, part-time and regular casual employees and those employed by associated entities); or
  • 12 months in the case of an employer with less than 15 employees.

There are a few other exemptions such as where termination occurs as the natural expiration of the period of an apprenticeship or fixed term engagement. 

So we are safe if the employee hasn’t qualified to make an unfair dismissal claim?

Well, you would like to think so, wouldn’t you?

That isn’t the case though because there are multiple jurisdictions in which an employee or ex-employee can prosecute a grievance.

One of those is an adverse action complaint under the General Protections provisions of the Fair Work Act where a claim of discrimination on prohibited grounds or of victimisation for exercising a workplace right  can be made.

Another is a claim of underpayment of wages to the Fair Work Ombudsman or there could be a WorkCover claim for psychological injury from the trauma of the termination process.

So should I even bother about probation periods?

 Absolutely, you should.

A robust probation review process whereby an employee’s progress is monitored constructively and supportively and they get regular feedback and instructions on what they are doing well and any areas requiring improvement is just good people practice. 

The other thing is that, if the new employee doesn’t work out and you have gone through that good probation process with them fairly, that is a protection against claims in other jurisdictions on the basis of what they call “reasonable management action”.

So yes you should have them and you should exercise them and you should document the actions taken through them. 

Anything else

We have had cases where “skeletons jumped out of the closet” when an employee was terminated – perhaps there were bullying complaints that were brewing or there was an underpayment issue that hadn’t been raised but which emerged when the ex-employee investigated their options and got advice from an authority like the Fair Work Ombudsman or WorkSafe or from a friend or family member or their union.

The bottom line with this is that 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 which provides such a service or through appropriately experienced and knowledgeable employment lawyers or workplace relations consultants like us.

And please, before you terminate someone, get some professional advice on how to go about that (or even if you should).

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

 

 

 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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Annual Wage Review 2025 decision announced

Annual Wage Review 2025 decision announced

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Annual Wage Review 2025 decision announced

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The Fair Work Commission has announced the Annual Wage Review 2025 decision which is to increase the minimum wage and award wages by 3.5% from 1 July 2025. 

No surprise here

This is just what we predicted – not a hard one given that the ACTU asked for 4.5% and the employer associations responded with 2.5% – made it easy for the FWC to just split the difference.

What to do

Check your employment contracts and enterprise agreement to see what they say about award wage increases, whether they flow on to employees and whether they can be absorbed against overboard payments.

If you haven’t had your contracts reviewed for a while, it could be an opportune time to get them looked at.

A caution

There have been a huge number of changes to employment laws and modern awards in recent years so make sure that you get this stuff right.

With the advent of the new criminal offence of wage theft from 1 January 2025 and the massive increases in penalties for breaches, getting it wrong can be very costly. 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 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.

 

 

 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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TELL US WHAT YOU NEED HELP WITH

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.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

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?

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

0438 533 311

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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 0438 533 311 to arrange your free first consultation.

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

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 0438 533 311 to arrange your free first consultation.

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