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.

From 1 November 2021 the new superannuation stapling rules came into effect. These rules have been designed to reduce the chance of employees accumulating multiple superannuation accounts when they move between jobs and hence paying multiple sets of fees and insurance premiums.

What are the new super stapling rules?

From 1 November 2021, every employee’s active superannuation accounts will be “stapled” to them. This means that, in the event that they move jobs, the employee’s superannuation accounts that were active on 1 November 2021 will become their default fund at their new job as opposed to the employer nominated fund.

If the employee starts a new job and does not choose their own superannuation fund, the employer must now check with the ATO to see whether that employee has any superannuation funds “stapled” to them. In the event that they do, then employers must use that existing fund rather than their own default fund. If there is more than one fund “stapled” to an employee, then the ATO will use its own set of rules to determine which is the fund that the employer will need to make contributions into.

If an employee hasn’t made a choice of superannuation fund and has no fund “stapled” to them, then employers may enrol them in their own nominated fund.

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

In this year’s annual wage review, the Fair Work Commission decided to implement the increases to award wages in three stages.

In the third and final of those stages, the following awards will see minimum rates increased by 2.5% with effect from 1 November 2021:

• Pilots Award
• Cabin Crew Award
• Airline Ground Staff Award
• Airport Award
• Alpine Resorts Award
• Amusement Award
• Dry Cleaning and Laundry Award
• Fitness Award
• Hair and Beauty Award
• Hospitality Award
• Live Performance Award
• Models Award
• Marine Tourism and Charter Vessels Award
• Nursery Award
• Racing Clubs Events Award
• Racing Ground Maintenance Award
• Registered Clubs Award
• Restaurant Award
• Sporting Organisations Award
• Travelling Shows Award
• Wine Award

From this date, employees covered by any of these awards must, at a minimum, be paid the new award rate for ordinary hours.

If employees are paid above the award rates, the increases can be absorbed against over award payments subject to any qualifications that may be included in enterprise agreements or contracts of employment.\

The normal penalties and loadings apply (on top of those minimum rates) for overtime, shiftwork and work on weekends, early mornings, evenings and public holidays.

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