New hourly rate guarantee for horticulture workers

New hourly rate guarantee for horticulture workers

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New hourly rate guarantee for horticulture workers

superannuation ATO

Piecework is where employees are paid on the basis of the quantity of work that they do as reflected in for example the number of garments sewn in clothing trades or the quantity of fruit or vegetables picked in the horticultural industry.

Under the Horticulture Award 2020, workers can be paid on a piece rate basis which “must enable the average competent employee to earn at least 15% more per hour than the minimum hourly rate prescribed in this award for the type of employment and the classification level of the employee”.

The Award (as it stands today) states: “Nothing in this award guarantees an employee on a piecework rate will earn at least the minimum ordinary time weekly rate or hourly rate in this award for the type of employment and the classification level of the employee, as the employee’s earnings are contingent on their productivity.” So, the Award clearly recognises the potential for workers with lower productivity levels to be paid below Award hourly rates.

However, on 28 April 2022, that is all going to change because the Fair Work Commission has decided that all horticulture workers have to be paid at least the equivalent of the ordinary hourly rate for all hours that they work.

Employers who are paying workers on a piece rate, have to maintain records of hours of work and ensure that what they each earns equates to at least the ordinary hourly rate for the classification in which they are employed for all hours worked on any day.

They also have to provide pieceworkers with a written pieceworker agreement before they commence employment. That agreement has to include: 

  • when (date and time) the piecework is to start 
  • a description of the task or tasks for which piece rates will be paid 
  • the piece rate amount 
  • the minimum hourly rate for the pieceworker’s classification level (plus, for casual pieceworkers, the 25% loading)
  • the following statement: “Under the Horticulture Award 2020, a pieceworker must be paid for each day on which they work, no less than their hourly rate under the award (including the 25% casual loading for a casual pieceworker) multiplied by the number of hours worked on that day.”

More detailed information can be accessed from the Fair Work Ombudsman @ https://www.fairwork.gov.au/newsroom/news/new-minimum-hourly-wage-guarantee-pieceworkers#main-changes.

If you need a hand in working out how to comply with the new rules, give us a call on 0438 533 311. Take advantage of our first free consultation offer.

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Superannuation changes keep coming

Superannuation changes keep coming

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Superannuation changes keep coming

superannuation changes

It isn’t long ago that we had some big changes in superannuation requirements with the new superannuation stapling rules that came in on 1 November 2021 – see more on that here. Now there are more changes coming in from 1 July 2022.

Removal of $450 threshold

Currently, the superannuation guarantee does not apply to an employee who earns less than $450 in a month.

That threshold is abolished so superannuation is payable on all earnings with one qualification – if you are under the age of 18, unless you are covered by a workplace agreement that states otherwise, you need to work more than 30 hours in a week.

Increase in compulsory superannuation contribution rate

Additionally, in line with the annual increases of 0.5% announced some time ago, the compulsory superannuation contribution rate increases to 10.5% from 1 July 2022.

Got any questions on this or any other employment matter? Give us a call on 0438 533 311 and take advantage of our offer of a free first consultation.

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New minimum payments for part-time employees under Social and Community Services Award

New minimum payments for part-time employees under Social and Community Services Award

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New minimum payments for part-time employees under Social and Community Services Award

Social services

The Social, Community, Home Care and Disability Services Industry Award 2010 covers employers in the:

    • crisis assistance and supported housing sector;
    • social and community services sector;
    • home care sector; and
    • family day care scheme sector.

Currently, there is no minimum period of engagement for part-time workers under that Award which is quite unusual. Employers and employees could agree to work less than the new minimum payment period.

The Fair Work Commission has decided that, from 1 July 2022, there will be a “minimum payment” provision which requires that the minimum engagement/payment for a shift or period of work in a broken shift of a part-time employee will be:

    • 3 hours for social and community services employees (except when doing disability services work) and
    • 2 hours for all other employees.
There is a transitional period that runs from 1 February 2022 to 1 October 2022 to enable consultation between employers and employees who have an Agreement for less than the new minimum payment periods made prior to 1 February 2022.
 
 
If you need assistance, please feel free to give us a call on 0438 533 311. Take advantage of our offer of a free first consultation.

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The Great Resignation – fact or fiction?

The Great Resignation – fact or fiction?

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The Great Resignation – fact or fiction?

great resignation

We have been hearing a lot about this – the Great Resignation – from the USA where people are reported to be leaving their employers in droves and businesses are having to up the ante with their employment offerings.

This is perfectly understandable in the USA for a number of reasons.

Firstly, people did not get the sort of support that we got here in Australia with JobKeeper and other government grants and subsidies.

We also have a host of employment protections that Americans do not have because their workforce is much more casualised than ours and they also have lesser legislated employment conditions.

And they had much higher COVID infection rates (at the time of writing, the USA had 74 million infections (about 22% of the population) as compared to Australia’s 2.5 million cases (less than 10% of the population) .

Those factors mean that the experience of American workers through the pandemic has been very different to ours.

One thing that workers world wide will have been doing through the pandemic is having a good hard look at their working life from a couple of perspectives – what sort of employer they work for and what place work should take in their lives.

This is happening in Australia too and we are seeing people leaving employers for six main reasons:

  1. They want greater flexibility in the way they work.
  2. They have moved away from cities to get out of and minimise future potential for lockdowns.
  3. They have the opportunity to move to more secure work or a different industry where they see career opportunities.
  4. They have been working in industries like healthcare and aged care and childcare and education where people have been under pressure for a long time and burnout has become commonplace.
  5. They were unhappy with their treatment by their employer during the pandemic and have the opportunity to do better.
  6. They have opted to retire or just opt out of the workforce.

Of course, there are also the minority who have chosen not to get vaccinated.

The labour market is the tightest that it has been for decades – it is really hard to attract any applicants let alone good ones.

A primary reason for this is the border closures and the impact that has had with no international students, migrant workers or backpackers available especially for industries like hospitality and agriculture/horticulture which have been reliant ion these workers for years.

The border closures also impact seriously on occupations where we have skills shortages – like engineers, tradespeople and accountants to name a few. 

So it is what you might call “the perfect storm” that must be navigated to attract and retain talent.

So will this current labour crisis be further exacerbated by the predicted “Great Resignation” hitting our shores?

We think that the opposite is the case – that one of the reasons that we are struggling to find candidates for good jobs is that people are staying put.

Most employers and employees have tried to do the right thing by each other during the pandemic and lockdowns and work restrictions. There is a bit of loyalty that goes with that experience. Plus, given the still insecure environment that we are in as a nation, why would you leave the security of your current job where you know what it is like, you have established relationships, you know what the rules are and you have your leave entitlements etc as an insurance policy if things do go downhill with the pandemic?

So the better question is “how do you get that person you need to see better opportunity and security with you?”

The lesson we can take from the USA is that, albeit that our labour market situation has different causes, it is time to get proactive with your employee value proposition and your labour marketing strategy. 

If you would like to see how we can help you to do that, give us a call on 0438 533 311 or email enquiries@ridgelinehr.com.au.

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FWC introduces loaded rates into the Hospitality Award

FWC introduces loaded rates into the Hospitality Award

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FWC introduces loaded rates into the Hospitality Award

bar fair work loaded rate

On 3 September 2021 the Fair Work Commission introduced loaded pay arrangements into the Hospitality Industry (General) Award 2020. These arrangements allow employers to pay certain employees a higher base rate of pay in lieu of employees receiving payment for overtime, penalty rates and the split shift allowance. The change was brought about after a submission to the Fair Work Commission from the Australian Hotels Association, who claimed that it would simplify Award compliance for employers.

What are the rates and who can be covered?

There are 6 tiers of loaded rates that range between 110.20% and 131.05% of an employee’s ordinary hourly rate. The rates vary depending on how many days of the week the rates apply to, which can be Mon-Fri, Mon-Sat or Mon-Sun, and the maximum amount of weekly hours an employee can work under the arrangement which can be either 40 or 45 hours per week.

It is important to note that the loaded rates can only be applied to employees who are full-time, over the age of 21, are level 3 or above in the Award, not receiving supported wage rates, and do not work on a roster with an RDO.

At this stage employers do not need an employee’s agreement to institute a loaded pay arrangement, however they must give employees at least 7 days notice of their intention to introduce the change. Arrangements must be made in writing and in accordance with Schedule L of the Award which you can view here.

Limitations

The loaded rate does not mean that employees have no entitlement to overtime, penalty rates or allowances. It just limits the circumstances where they will be payable.

The following list contains the parameters for a loaded rate and all time worked outside ranges specified or scope of the arrangement will still attract overtime/penalty rates:

  • Monday to Friday: a maximum of 11.5 hours (excluding meal breaks) per day / shift rostered between 7:00am and 12:00am (midnight);
  • Saturday: a maximum of 10 hours (excluding meal breaks);
  • Sunday: a maximum of 10 hours (excluding meal breaks); and
  • if the period between shifts is 3 hours or less, a split shift allowance must be paid

Additionally public holidays payments are excluded from these arrangements and must be paid per the Award.

If you have any queries, please contact us on 0421 592 541 or at enquiries@ridgelinehr.com.au.

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enquiries@ridgelinehr.com.au

0438 533 311

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Time to address sexual harassment

Time to address sexual harassment

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Time to address sexual harassment

Over recent years, gender equality and sexual harassment have very much been in the news. That gave rise to our own National Inquiry into Sexual Harassment in Australian Workplaces undertaken by the Australian Human Rights Commission.

Last year, they released the Respect@Work Report on the findings from that inquiry which included:. 

  • that sexual harassment is rife in Australian workplaces and
  • that fundamental systemic change is necessary to protect women’s safety at work and participation in the workforce.

On 10 September 2021, our federal parliament passed the Sex Discrimination and Fair Work (Respect at Work) Amendment Act 2021 which, among other measures, provided the Fair Work Commission with new powers to receive complaints of sexual harassment and to issue orders for the sexual harassment to stop.

These powers (which are similar to those that the FWC already has for issuing orders to stop bullying) came into operation on 11 November 2021.

What is sexual harassment?

A person sexually harasses another person if they:

  • make an unwelcome sexual advance
  • make an unwelcome request for sexual favours
  • engage in other unwelcome conduct of a sexual nature in relation to the person harassed.

The first two of those are things that any reasonable person would see as clearly falling into the category of sexual harassment. It is the third one “unwelcome conduct of a sexual nature” that gets a bit murkier. Some examples of such conduct might include:

  • sexually suggestive comments or jokes;
  • intrusive questions about private life or physical appearance;
  • unwanted invitations to go on dates;
  • unwanted written declarations of love;
  • sending sexually explicit or suggestive pictures or gifts to a worker, or displaying sexually explicit or suggestive pictures, posters, screensavers or objects in the work environment;
  • intimidating or threatening behaviours such as inappropriate staring or leering, sexual gestures, or following, watching or loitering;
  • inappropriate physical contact, such as deliberately brushing up against a person, or unwelcome touching, hugging, cornering or kissing;
  • sexually explicit or suggestive emails, SMS or social media (including the use of emojis with sexual connotations), indecent phone calls, circulating pornography or other sexually graphic imagery, or sharing or threatening to share intimate images or film without consent.

So it isn’t just a question of someone trying to pressure someone into having sex, it is anything of a sexual nature which would potentially make someone uncomfortable whether in the physical or virtual workplace or online and on social media.

Who is covered by the legislation?

The legislation uses the definition of a worker under the federal “Work Health and Safety Act 2011” to describe who can make an application to stop sexual harassment. This includes:

  • an employee including an outworker, apprentice or trainee
  • a contractor or subcontractor (and their employees)
  • an employee of a labour hire company working in your business
  • a student gaining work experience
  • some volunteers

Importantly, when it comes to the identity of the alleged perpetrator of sexual harassment, the same broad context applies – anyone who the applicant comes into contact with as part of their work can be the alleged instigator of sexual harassment. This includes workplace visitors, customers and suppliers and their employees or sub-contractors.

What criteria must be satisfied for the FWC to issue orders to stop sexual harassment?

For the FWC to be able to make an order to stop sexual harassment, it must be satisfied not only that a worker has been sexually harassed at work by an individual or individuals (the persons named in the application), but also that there is a risk that the worker will continue to be sexually harassed at work by that individual or those individuals. 

What can the FWC order?

There is the ability for the parties to an application to agree on consent orders to resolve the matter and they are then bound to comply with those consent orders.

For example, the parties could agree to:

  • changes in work arrangements, including in lines of reporting
  • an apology
  • a reference or statement of service (if the employment relationship has ended)
  • commitments by the employer or principal to investigate a complaint or to train staff or to review and update its policies or conduct a workplace risk assessment.

This list is not exclusive and what is agreed will depend on the specific circumstances of the case and the workplace in question.

The focus for the FWC is to try to assure the future safety of the applicant from the sexual harassment complained of.

So, in these cases, the FWC does not have powers to award compensation or, for an employee who has resigned or been terminated, to direct reinstatement.

What should employers do?

The first thing that all employers need to do is to accept the reality that sexual harassment is probably happening in your workplace in one form or another and that you have a legal responsibility to stop it.

Secondly, educate yourself and your management team about sexual harassment, your responsibilities and what you need to do to assure a workplace free of sexual harassment.

Next, review and update your policies and procedures around respectful workplace conduct (or, conversely, discrimination, harassment and bullying) ensuring that they are clear in explanation, practical in application and effective in supporting people to comply with them and to deal with non-compliances in a supportive way.

Then, ensure that all of your people understand the rules, what sexual harassment is and the processes for dealing with it and what they need to do conduct themselves respectfully.

Finally, do a sexual harassment risk assessment and create and implement a risk control plan. Starting with yourself and your management team, identify behaviours that any of your people might practise or experience at work that need to be corrected because they potentially constitute sexual harassment or bullying. Then deal with them – kindly but firmly and regardless of who is involved because that is the right thing to do.

Need help in getting the right things in place, getting your people on board or dealing with complaints?  Then contact us

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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