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IMPORTANT RECENT DEVELOPMENTS

Updated Fair Work Information Statement

Employers are required to provide a Fair Work Information Statement to all new employees.  The document has been updated from July 2010 and employers should ensure they are providing the updated version to new employees.  It can be downloaded from www.fwo.gov.au or by contacting our office.  The changes to the statement are minor in nature.

Updated Small Business Fair Dismissal Code

Employers with less than 15 employees are able to rely on compliance with the Code as a defence to an unfair dismissal claim.  The Fair Dismissal checklist has been updated recently to refer to additional redundancy requirements and an employee’s right to have a support person present at a disciplinary meeting.  The updated checklist can be downloaded from www.fwa.gov.au or by contacting our office.

Are you paying more than the award rate?

A recent decision of Fair Work Australia has clarified the meaning of the standard modern award clause allowing modern award monetary obligations to be absorbed into overaward payments.  FWA has clarified that this is a transitional provision which only allows increases in award obligations (such as minimum and overtime rates) to be absorbed into overaward payments.  The general position, for an award employee, is that a standard over award rate or a salaried rate for all hours worked will not offset a higher award overtime rate. If employers wish to avoid having to pay increased amounts for overtime, it is important to have common law employment agreements which make this clear.

Superannuation increase

The federal government recently announced that compulsory employer superannuation contributions are to increase from 9% to 12% over 7 years commencing from 1 July 2013.  Employers should give consideration to packaging compulsory superannuation into overall employee remuneration rather than paying employees on a salary + super basis.  It is of course still necessary to ensure that all award obligations are being met. 

AUSTRALIAN WORKPLACE LAWYERS