The Fair Work Commission’s new annualised salary provisions will come into effect on March 1.
They will require employers under 22 modern awards to be much more stringent about overtime and record-keeping measures.
From March 1, three important practices aimed at reducing wage theft and non-compliance with awards will become legally enforceable for employers:
1. Employers will need to notify employees in writing of their annualised salary and their maximum ordinary working hours outside of the 38-hour week.
2. If an employer finds that their employee received less pay on their annualised wage agreement than if they were paid under the award, they need to pay the employee the difference. Any shortfalls must be paid to them within 14 days.
3. Employers will need to keep records of the start, finish and break times of their employees.
With the recent spate of underpayment scandals among major retail groups, the measures could result in better controls over wage theft.
This would protect employers and employees with traceable hours and entitlements.
However Australian Payroll Assocation CEO Tracy Angwin claimed it could destroy flexible work cultures.
“Up until now, employers have been able to rely on a system of trust with their employees.
"The new annualised salary clauses in some modern awards, which will require more stringent record-keeping and overtime control measures, such as recording the start, finish and break times of employees, will completely change that.
"In fact, it could erode the trust between employers and their staff.”
“Payroll is one of the most complex and legislated areas of a business, but increasingly we’re finding that legislators are creating laws without properly thinking about how employers are going to implement them.
"The 1 March changes – and their propensity to create a ‘clock-watching’ mentality among staff – is another example of this.
"Clearly a commonsense approach is needed here to ensure that the intent of the legislation is in fact going to benefit each workplace environment on a practical level.”
What do you think? Is it a step forward in accountability or a move back in trust?