Your Swiss Army knife

Your Swiss Army knife

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Your Swiss Army knife

example flexible working arrangement

 

One of the psychosocial hazards that research is showing to be at the forefront of the list that organisations need to address is that of lack of role clarity.

One of the tools that we can use to help to address that is the humble Position Description (PD) which has been around for decades and can be found in lots of different forms. 

In most places where I have worked as an employee or as a consultant, PDs are commonly treated as something we have to have for our quality accreditation or our HR compliance or something that we give people when we advertise a job or when they start employment with us. They are then filed away and forgotten about. 

This is really unfortunate because the PD is a very versatile tool and arguably one of the most powerful in a manager’s toolbox. 

So how can PDs be used to good effect? Here are 5 ways that we have used them.

#1. Compliance satisfaction

Every employer has a statutory duty to ensure that every employee is properly instructed in their duties and has the skills and abilities to perform their tasks safely for themselves and others. This is enshrined in workplace health and safety law and is also an important part of employment law in general.   

The PD is an effective aid to that instruction and skills assessment and enablement. It helps with documentary evidence of satisfaction of the statutory duties that all employers have as well as in dealing with employee grievances and actions against the employer (eg in demonstrating reasonable management action in response to an adverse action or bullying complaint).  

#2. Recruitment effectiveness

If you are going to be effective in recruitment, you first want to know what the attributes required for competent performance of a role are so that you can prepare a fit advertisement. 

You then need to identify selection criteria and the how to assess candidates by considering the attributes required in the role and the best ways to test candidates for those attributes. 

You also want to communicate what attributes are required to candidates (so that the right ones apply).  

A properly constructed PD helps with all of that and assists you to make an informed and evidence-based selection decision.

 #3. Targeted development

The content in PDs that details the skills, knowledge and attributes required provides a great foundation for assessing the technical strengths and weaknesses of an employee and why that is the way they are.  

That, in turn, can lead to targeted development that leverages those strengths or builds on areas of weakness. That will deliver the optimal return on investment in learning and provide the best support and recognition for the individual employee.  

It is also a great aid to onboarding of employees and getting them up and running quickly because their role and responsibilities are clearly communicated and easily understood from day one.

 #4. Performance management

Clearly, if we are going to expect people to perform their roles effectively, we have to tell them what their roles and responsibilities are and what performance standards are expected. A good PD does this and helps employees to be more productive and aligned in performance as a result.

Conversely, when performance management concerns arise, it is very important to go through a methodical, relevant and procedurally fair process that is supported by documentary evidence.  

The PD plays a critical part in this as it describes what is expected of the role the person is performing and the attributes required to meet those expectations. It also provides documentary evidence that the employer has clearly communicated the duties and expectations to the employee.  

Additionally, as with development of employees, the PD can be a useful tool for analysing why an employee might not be meeting expectations eg because they are lacking in some particular attribute (skill, ability or knowledge) required for the role.  

#5. Better employee engagement and wellbeing

Study after study tells us that key elements in good employee engagement and wellbeing practice include: 

  • giving people clarity about their roles and the expectations of them
  • providing the support that they need as an individual to be successful in their roles
  • having clear meaning and purpose in the work that they do and
  • feeling psychologically safe by feeling included and informed and involved in their work, in their relationships and in their team.

 A well-structured PD helps with all of these factors when all of the PD purposes outlined above are part of everyday practice in organisations.

 So that is why I think of the PD as the HR Swiss Army Knife – it can be used constructively in so many different ways. 

 Of course, it is just a tool and there are many others in the HR toolkit that need to be used to deliver best practice in People and Culture management.

Do you need to reimagine how you use PDs in your business?

How can we help?

We can provide you with tools like Position Descriptions and coaching in how to apply these tools effectively to control psychosocial hazards, otherwise meet your compliance obligations and build better communications and employee engagement.

If you want to know more, give us a call 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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Changes to the Child Employment Act

Changes to the Child Employment Act

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Changes to the Child Employment Act

children on laptop

Did you know that you need a child work permit to have an employee under the age of 15 work in your business? In this article we’ll outline how they work and what exemptions there are as well as the changes coming on 1 July 2023.

How it works

Children under 15 can be employed in a business subject to a few qualifications:

  • They must be at least 11 years old to do delivery work or 13 to work in retail or hospitality and must be supervised at all times by someone who possesses a valid Working with Children Clearance.
  • An employer must have a permit before they engage an under 15 year old. Failure to have a permit is a crime and employers may be penalised accordingly.
  • There are restrictions on how many hours they are allowed to work and when those hours can be, including start and finish times.
  • Employees under 15 years of age have increased break times and frequency compared to older employees.

What exemptions are there?

While most businesses are subject to the above rules family businesses are exempt from needing a child workers permit and some of the rules regarding age restrictions, hours of work and rest breaks do not apply so long as they are directly supervised by a parent or guardian. If someone other than a parent or guardian is supervising the employee then the exemption does not apply.

Similarly the entertainment and advertising industry have their own rules that differ from the rules that apply to most other industries. They can be found in more detail by following this link. Child employment permits – entertainment and advertising

Changes

As of July 1 2023 the Child Employment (Amendment) Act 2022 is being introduced. This Act changes the system of employing children from having to apply for individual permits for every child to employers being able to hold a licence under which they can employ multiple children.

it also clarifies several grey areas including definitions regarding what constitutes a family business, what employment means in several contexts in different industries and supervision rules. 

For more information on the changes please look at this page. Changes to the Child Employment Act

Child employment laws are enforced by the Wage Inspectorate Victoria.

If you need any assistance with anything mentioned please check the Victorian Governments web page regarding child employment here or if you need further assistance please give us a call on 1300 108 488.

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Award changes on annual closedowns

Award changes on annual closedowns

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Award changes on annual closedowns

christmas presents

The Fair Work Commission has recently handed down a decision to vary 78 modern awards in relation to annual closedown arrangements.

Historically, annual closedowns have generally required a period of notice from a few weeks to a couple of months and employees then have to take annual leave during the closedown. Employees who don’t have adequate annual leave balances go on leave without pay for that part of the closedown period not covered by annual leave.

The major change that this decision makes is to remove the employer’s right to put an employee on leave without pay if the employee does not have adequate annual leave to cover the closedown period.

Instead, the employer will need to formally obtain the employee’s written agreement to go on leave without pay. If the employee does not agree, the employer must provide the employee with work or, if that isn’t possible, pay the employee normal wages for that part of the closedown period not covered by annual leave.

The employer and the employee may also agree to the employee having annual leave in advance.

What this means for employers?

Essentially, full-time and part-time employees who do not have adequate annual leave to cover an annual closedown period can withhold agreement to take leave without pay or annual leave in advance and still be entitled to payment by the employer for the part of the closedown not covered by annual leave without having to work and without having any deduction from paid leave entitlements.

This is clearly a disincentive to employing people as full-time or part-time and arguably runs counter to the new Object of “Job security” in the Fair Work Act. Employers can avoid the issue by employing people as casual employees.

In circumstances where an employer might need to recruit someone in the months leading up to their annual closedown, they might want to make employment conditional on a prospective employee agreeing to take leave without pay when the forthcoming annual closedown occurs as part of the job offer/contracting process.

Employers also need to revisit their annual leave policies and procedures and how they manage employees’ leave applications and accruals to ensure that employees have adequate annual leave to cover the closedown period. Assuring that employees receive the required notice in writing of closedowns also needs to be provided for.

There is probably also a need to consider the question of closedowns of themselves – what the need for them is and how long they need to go for.

These changes to modern awards are due to take effect from 5 May 2023.

If you need assistance in dealing with this issue, call us on 1300 108 488 or email enquiries@ridgelinehr.com.au.

 

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ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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Is an enterprise agreement the answer?

Is an enterprise agreement the answer?

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Is an enterprise agreement the answer?

Wouldn’t it be great if you could simplify compliance with modern awards and related matters?

If you could tailor content to your workplace?

If you could have everyone on the same terms of employment?

Guess what – you can do all of those things and more in an enterprise agreement.

What is an enterprise agreement?

An enterprise agreement is an agreement made between an employer and a group of employees on wages and conditions of employment for that group of employees.

They can be made with all or some employees in a particular enterprise and have to be approved by the Fair Work Commission.

They can incorporate modern awards that have application to the group of employees or they can exclude those modern awards, totally replacing them.

How are they made?

The process starts with the issue of a Notice of Representational Rights which informs the employees concerned that their employer wants to make an enterprise agreement and that they have the right to be represented in negotiation of that agreement.

Employees nominate one or more people to represent them and they can nominate themselves if they wish to.

If an employee is a member of a union, the union has default bargaining rights unless that employee nominates someone else as their bargaining representative.

The employer and employee representatives then develop a draft agreement and, when it has got to stage where there is a reasonable level of confidence that people are OK with it, a vote of employees is organised.

If a majority of the employees who vote, vote in favour of it, it is approved subject to certification by the Fair Work Commission.

What happens at the Fair Work Commission?

A copy of the signed agreement together with an Application to Approve an Enterprise Agreement (Form F16) and a Statutory Declaration (Form F17) and various other documents are filed with the Fair Work Commission.

The Commissioner who deals with it is then primarily concerned with the following questions:

  1. Whether the Agreement satisfies the Better Off Overall Test i.e. employees are better off under the Agreement than they would be under the relevant modern award(s).
  2. Whether the group of people covered by the agreement does not unfairly exclude other employees and
  3. Whether the Agreement has been fairly made i.e. the correct process has been followed, people have been properly consulted, prescribed timelines observed and people have been properly informed about the effects of making the Agreement on their wages and terms of employment before they voted on it

If the Commissioner has any concerns, an undertaking might be required or submissions might be invited for consideration.

Once the Commissioner can answer “yes” to the 3 questions noted above, the Agreement can be formally approved and legally takes effect from 7 days after the date of that approval.

Reasons for doing an enterprise agreement

There are a variety of very good reasons that might apply depending on the particular award coverage and the circumstances of the business. These include:

  1. Simplification: modern awards try to cover whole industries or particular occupations across multiple industries and we often find that much of the content in modern awards has little or any relevance to particular businesses. So we can trim it back to what is relevant.
  2. Flexibility: all modern awards have Individual Flexibility Clauses which allow some flexibility with existing employees in a limited range of matters and Facilitative Provisions which also allow some room for negotiation on some things. However, they won’t necessarily provide the sorts of flexibilities that employees might want and the employer is happy to offer and that can be addressed through an enterprise agreement.
  3. Customisation: modern awards are largely a one size fits all approach and we know that one size doesn’t fit all. For example, classification structures in modern awards are often difficult to apply to a particular business because they lack definition or they just don’t make sense. In most cases, they were developed decades ago and really don’t take account of technological and other changes to the way we work and the skills that we use today. If you pay people sufficiently above award, you can make your own structure that makes sense for your business and your people.
  4. Fairness: some modern awards have specific provisions which are just unfair for employer and employees. For example, modern awards which have Industry Specific Redundancy provisions allow an employee who resigns after at least one year’s service to receive a redundancy payment of up to 8 weeks while an employee who is retrenched after more than 5 years’ service gets less under the modern award than they would under the National Employment Standards that apply to most other employees. With an enterprise agreement, you can put everyone on the same footing with things like that.
  5. Protection: for some businesses, having an enterprise agreement of your own offers protection from coercion to enter into an enterprise agreement with a union which would force you to pay your workers at major project rates on all of the work that you do. That can make your business uncompetitive for other work. If you are in such an industry and have a non-unionised workforce who are happy to be that way, your own enterprise agreement can help you to get the right balance in paying higher rates on major project work and at lower levels on other work. Equally, a head contactor on a major project would likely want your business to have an enterprise agreement so as to avoid industrial relations disruptions to the project. All enterprise agreements are published on the Fair Work Commission’s website and you can use that to publicly demonstrate your employer value proposition to prospective employees because it is locked in by law.

Conclusions

The process for making an enterprise agreement is complicated and the Fair Work Commission’s approach to them is complex. Additionally, individual Commissioners can have their own way of dealing with them.

That means that you do need professional assistance in developing and implementing one and we can assist with that. Equally, if any of the scenarios described above fit your business situation, it can be a very worthwhile exercise that can deliver real positive change in workplace flexibility, fairness
and employee engagement.

If any of this is of interest to you, take advantage of our free first consultation to explore your options and how we can help.

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

Creative compliance – beyond minimum standards

Creative compliance – beyond minimum standards

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Creative compliance – beyond minimum standards

great resignation

In this, the second of our blogs on creative compliance, we explore the question of how limiting just complying with your legal obligations can be and what might work better than that.  

Under our Fair Work system of minimum wages and employment standards, we spend a lot of time talking about the importance of compliance with those standards – to ensure that employees are receiving at least the minima that they are legally entitled to and to ensure that employers are not vulnerable to costly underpayment claims, damaging prosecution and embarrassing publicity.

Yes, of course, compliance is important but is that the be all and end all?

Does compliance with legal minimum standards constitute a real value proposition for employees or does it say: “We are doing as little as we legally have to as an employer?”

Not much of an Employer Value Proposition, is it?

And do those minimum standards really address all of the things that they need to if we really do believe that “People are our greatest asset”?

 The immediate challenge

The events of the past couple of years have shone a real spotlight on the value proposition that employers offer as individual businesses or within specific industry sectors.

The insecurities of the hospitality industry with high levels of casualisation of labour were exacerbated by lockdowns and business closures and a continued lack of access to migrant student/backpacker labour. That caused locals in the industry to look for alternative more secure employment and many have found that alternative and are not going back.

Conversely, many frontline workers who have had to lift a very heavy load during the pandemic have sought alternative employment that is less stressful and they are not going back.

Added to that we have had the problems of not having access to migrant workers in both of those sectors and the lowest unemployment  rate that Australia has had for decades. These are affecting businesses across all sectors.

That raises the question of how you are going to attract and retain the people that you need ie how you can offer an attractive value proposition if you just comply with your legal obligations. Why would someone want to work for you as compared to other employers?

Let’s take off the compliance blinkers

One of the problems that looking at anything through the lens of compliance and risk management is that we don’t open our eyes to possibilities for something that might better match the needs of our people and our business. We are so focused on not doing the wrong thing that we don’t consider what might be the best thing.

That also influences the tone of conversations that we have with our people in relation to things that happen in their lives. If we talk in compliance terms, that can be a disappointment at a time when the employee would value a more supportive approach from their boss, HR Department or employer. And that can make a real difference to how the employee sees their employer and how that impacts on the employment relationship.

Here is a story that illustrates what I am talking about here.

That’s not in the rules

This was in the early 1990s before Carer’s Leave was introduced. An employee had been with their employer for five years and hadn’t had a single sick day off in all of that time. He approached management about whether he could use a few days of sick leave to cover a short absence that was necessary so that he could look after the children while his wife was in hospital having essential surgery. He was told that he would have to take annual leave because he wasn’t sick. From that point on, he took every single day absence as a sickie that he legally could – they lost him for 8 days each year. We do have carer’s leave now but there are other minimum standards that are equally problematic such as Compassionate Leave. That provides an entitlement to take up to 2 days of paid leave per occasion on the death or threat to life of a member of your immediate family or household.

That doesn’t provide you with an entitlement to paid leave if a best mate or a good friend or a loved uncle or aunt or cousin or niece or nephew happens to die. It doesn’t cover bereavements for a boss or a subordinate or a work colleague. It doesn’t cover bereavement for a pet. All of those situations are things which cause us grief and which we need to process and that means we are certainly not going to be at our best in doing our job while we work through that.

So, rather than just comply with the minimum standard, could you extend a bit of flexibility by offering either extended compassionate leave or access to personal/carer’s leave?

Get smart

The Fair Work Act, modern awards and other legislation just provide minimum standards that you have to comply with but that is all they are – the minimum that you have to do as an employer.

If you want to give people a reason to want to work for you, give them something more than that. Sit down with your people and work out what you can do to provide an Employer Value Proposition that works better for your business and your people.

If you want to show that you are absolutely committed to that and put it out there as a guaranteed EVP, you might even consider doing an enterprise agreement. These are all published on the Fair Work Commission website for all to see.

Interested?

If you are, we can help because we have both the compliance knowledge and the imagination and perspective to go beyond that constructively (in a legally and culturally appropriate way) . If the theme of this blog resonates with you and you would like to explore possibilities, give us a call to arrange your first free consultation on 0438 533 311 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

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TELL US WHAT YOU NEED HELP WITH

Creative compliance – classification structures

Creative compliance – classification structures

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Creative compliance – classification structures

great resignation

This is one of our creative compliance blogs where we explore options for being a little innovative within the constructs of the Fair Work system.

The Challenge

One of the difficulties that employers and employees can have with modern awards is understanding the classification and wage structures ie where a particular employee’s job fits and what the minimum rate of pay for that job is.

Why is this difficult?

Sadly, it is because classification structures in many awards simply don’t describe the work that people do. Some make no reference to tasks performed, some have some generic content around level of supervision or degree of independence which isn’t very helpful and some have stated qualification levels which, in some cases, are not actually relevant. 

How can that be the case?

Back in the early 1990s, employer associations and unions negotiated new so-called “skills based classification structures”. Ostensibly, this was about aligning job classifications and wage rates with industry training and qualification levels.

However, what actually happened was:

– Industry training people built the training curriculum and qualifications frameworks;

– Industrial relations people separately negotiated structures for each industry against a set of job benchmarks framed as a % of a tradesperson’s rate in the context of the particular awards relevant to the particular industry or occupation and the wage structures that already existed in those awards;

– Some industries simply set award classification levels by reference to the qualifications framework for the particular industry or occupation with little or no definition of tasks performed;

– Others set award classifications by aligning existing award wage levels for particular jobs (eg for a trades assistant or a forklift driver) with the closest benchmark % of the tradesperson’s rate, largely ignoring the qualifications framework in the negotiation process but including references after setting the wage levels; and

– While there were guidelines and the Australian Industrial Relations Commission nominally oversaw the process and had to approve the award classification structures, each industry pretty well did its own thing.

Some awards kept schedules of the pre-existing classification levels as references which were helpful.

Note: Ridgeline HR Practice Leader, Peter Maguire was a member of the Australian Textile Employers Industrial Relations Council and participated on the working party that developed the structure for the textile industry.

Then, with the advent of the Fair Work system, modern awards were created and there has been an ongoing modern award review process going on in the Fair Work Commission for the past 9 years.

With some awards, those reference schedules have been removed in these processes.

Of course, there is the other problem – that the way work is performed and the skills and knowledge required to perform that work effectively today can be very different to what it was when those so called skills-based classification structures were created 30 years ago.

Shouldn’t the Fair Work Commission fix it?

What is clear is that the award modernisation process really hasn’t been effective in modernising awards. It has largely been a rationalisation process to reduce the thousands of awards that operated federally and in States and Territories to a more manageable number. The Fair Work Commission has been effective in getting that number down to a bit over 120.

It has also been effective in standardising some provisions across awards to provide consistency but classification structures have largely been left alone and that is likely to remain the case.

What can you do about it?

If you are paying your people significantly above award, you have the opportunity of creating your own classification structure – something that you and your people see as being fair and that makes sense for your business.

You can do something entirely different to the award structure as long as people would all be paid more under your structure than they would be under the award structure.

What is important in implementing something of this sort is:

1. There are clear descriptors for each level which clearly differentiate between one level and the next

2. Your people are educated and consulted about the structure and are accepting of it as a fair way to recognise peoples’ skills and contributions

3. You have a process for people to seek reclassification based on their skills and abilities as they relate to your classification structure

4. Your classifications and remuneration satisfy the “Better Off Overall” principle i.e. they are above the award minimum rates for the corresponding award classifications

5. If other monetary award conditions (eg allowances or penalty payments or loadings) are to be factored into overall wage rates within your structure as well, your structure should include detail on what is included in the rates and how the calculations have been made

6. You update the rates every time there are award wage increases – generally these happen on 1 July each year via the federal minimum wage review conducted by the Fair Work Commission

7. You ensure that your contracts of employment and remuneration policies and procedures are aligned with your classification structure and processes.

You might also consider developing your own enterprise agreement and having that approved by your employees and the Fair Work Commission which makes it legally binding on all parties. It also serves as evidence that your pay and conditions are both fair and above award.

Conclusion

We do have strict compliance requirements under employment laws and modern awards but that doesn’t mean that you cannot be  creative and compliant.

If you want to explore opportunities to get creatively compliant, book in for your free first consultation by calling us on 0438 533 311 or emailing us at 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