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Small businesses must ensure workplace compliance this end of financial year.

Small businesses must ensure workplace compliance this end of financial year. (Last Updated On: August 23, 2017)

End of financial year is a significant time for small business and with one of the most complex workplace relations systems in the world, it is essential that business owners stay updated and compliant with the changes that come into effect on, or after 1 July.

One of the most significant changes occurs annually as the Fair Work Commission (FWC) reviews the National Minimum Wage and the base rates of pay for each Modern Award, with any changes to come into effect the first full pay period on, or after 1 July. The changes that come into effect will be mandatory, and employers must be across what it means for the entitlements and conditions of their employees.

In addition, earlier this year the FWC made the decision to lower the rates payable on public holidays under some Modern Awards. The FWC delayed the introduction of the changes from March until 1 July, meaning it will coincide with the changes to the base rates of pay under the following Modern Awards:

  • Hospitality Industry (General) Award 2010
  • Restaurant Industry Award 2010
  • General Retail Industry Award 2010
  • Fast Food Industry Award 2010
  • Pharmacy Industry Award 2010

The Commission has also announced that reductions in the Sunday penalty rates in a number of awards in the hospitality and retail sectors will be phased in over the next two to three years, commencing 1 July 2017. The pay rate schedules on the MyEmploysure portal will be updated accordingly for the relevant awards.

Where to from here?

  • Employers need to ascertain what the new pay rates are for their employees. For clients of Employsure, this information will be provided as it is made available via the Employsure Portal (click here to login to MyEmploysure)
  • Ensure that record keeping (eg rosters and pay slips) is in order to enable an easier transition to the new rates
  • In relation to the reduced penalty rates on public holidays, it is not necessary to pass on this reduction to employees. Employers may choose to continue paying their employees at the same rate as they were before, provided this is above the minimum set by the Modern Award (ie they are free to continue paying above the minimum rate, they just cannot pay them below the new penalty rate)

For help and advice on the 1 July changes, contact Employsure on 1300 651 415.

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