Running a small business comes with many challenges. Managing employees, keeping up with changing laws, and building a strong company culture are just a few. That’s why many small businesses turn to HR consultants . Whether it’s through one-time advice or ongoing support, HR consulting helps business owners save time, avoid legal issues, and build better workplaces . Here are the top reasons small businesses choose to work with HR consultants: Expert Support without the Full-Time Cost Hiring a full-time HR manager can be expensive. For many small businesses, it’s not practical. This is where HR outsourcing comes in. By working with HR consultants in Adelaide , businesses get expert help when they need it—without the cost of a full-time salary. Whether you need help creating contracts, writing job descriptions, or handling a workplace issue, HR services give you access to experienced professionals on a flexible basis. Hiring and Onboarding Made Easy Finding the right people is key to growing your business. But recruiting, interviewing, and onboarding new hires takes time and skill. HR consultants can take care of the hiring process for you. They know how to write clear job ads, screen applicants, and help you choose the best fit for your team. Once someone is hired, HR services ensure onboarding is smooth. From setting up employee files to explaining policies, your new team members start off on the right foot. Staying Compliant with Employment Laws Labor laws and workplace rules can be confusing and often change. Missing one small detail could lead to fines or lawsuits. HR consulting helps you stay compliant with local, state, and federal laws. HR consultants review your contracts, policies, and procedures to make sure everything is up to date. They also provide advice when new rules are introduced, helping you avoid costly mistakes. Building a Positive Workplace Culture A happy, motivated team performs better. But creating a positive workplace culture doesn’t happen by accident. It takes clear communication, recognition, and fair treatment. HR consultants can guide you on how to build a strong culture that keeps employees engaged. Whether it’s handling conflict resolution, improving feedback systems, or offering employee training, HR services help you create a work environment where people want to stay. Managing Employee Performance and Growth Small business owners often struggle with how to give feedback or manage employee performance . With the help of HR consulting, you can build simple systems to track goals, review progress, and support development . HR consultants provide templates and strategies to make performance reviews easier. They can also suggest training programs to help your team grow and improve over time. Support During Times of Change or Growth As your business grows, your HR needs will grow too. You may need to create new policies, hire more people, or restructure teams. These transitions can be hard to manage alone. HR outsourcing helps you navigate these changes smoothly. Whether you're opening a second location, merging with another company, or adjusting to remote work, HR services help you adapt while staying organized and compliant. Wrapping Up Working with HR consultants is a smart move for small businesses. You get expert help, save money, and build a better workplace for your team. Whether you need short-term advice or long-term support, HR outsourcing gives you the flexibility to get what you need—when you need it. If you are ready to take the next step in managing your people more effectively, HR consulting could be the solution you are looking for. Contact us today to learn more about our HR outsourcing in Adelaide .

In today’s fast-paced and ever-changing business landscape, planning for the future isn’t just smart—it is essential. One of the most critical components of a company’s long-term success is its people. Ensuring your workforce is aligned with your future goals requires careful strategy, insight, and expertise. This is where HR consulting comes in. HR consultants bring a strategic advantage to workforce planning. With market intelligence, data, and proven methodologies, HR consultants empower businesses of all sizes to project staff requirements, develop talent pipelines, and remain agile in an ever-evolving environment. With outsourced HR services or temporary strategic advice, HR consultants provide the expertise and HR solutions companies need to stay competitive. Understanding Future Workforce Planning Workforce planning is the process of reviewing existing staff strengths and projecting future talent needs. It is about knowing where your company is going and what type of talent will be required to get there. This isn't merely about hiring—it is about creating a long-term recruitment, training , succession planning, and organisational development strategy. HR consulting in Melbourne breaks down these areas in detail. They examine your existing employees, determine where gaps exist in their skills, and assist you in linking your people strategy to your business objectives. Their external insight is particularly helpful in recognising trends and requirements that you might not have thought about internally. How HR Consultants Add Value Workforce Analysis & Forecasting HR consultants begin with a detailed examination of your current employees—skills, positions, performance, and demographics. They then use industry statistics and forecasting methods to determine the number of jobs and skills your business will need in the future. This evaluation is crucial in determining whether you need to upskill current employees, recruit new employees, or reorganise current teams. Talent Pipeline Development Perhaps the most important issue for businesses is selecting the correct talent when they need it. HR consultants help you create talent pipelines—future employees talent recruitment, engagement, and retention strategies . This also includes succession planning at key positions and high-potential employee identification that can develop within your company. With offsite HR services, the consultants can even take care of parts of the hiring process, which saves your time and enables you to get access to the best candidates at the most efficient speed. Strategic Hiring Plans HR consultants don't just help you react to staffing requirements—they help you plan ahead for them. By linking staffing plans to your business development plan, consultants help you get ahead, not react but lead. This proactive approach improves staff cohesion, and allows for more efficient operations. Skill Development and Training Future business needs for the workforce don't necessarily mean you have to hire new. In most cases, it is best to invest in developing the talent you already have. HR consultants provide HR advice on upskilling and reskilling programs so that you can build in-house expertise to meet future needs. They can also help with infrastructure for learning and development programs to maintain a competitive edge. Scalable HR Solutions for SMEs For small companies and small and medium-sized businesses, keeping a full-time in-house HR staff isn't always possible. That's when you can bring in outsourced HR services. With scalable, flexible packages, you can have your hands on the same strategic talent that big corporations get access to—but at a fraction of the cost. Whether recruitment, compliance, or future labour planning requirements, outsourced HR solutions provide expanding businesses with tailored HR services uniquely designed to help them meet their goals and bottom lines. Why Proactive Planning Is Important The business world is changing quickly—technology, demographics, and home-working habits all have a role in shaping how teams are formed and led. Those who do not future-proof will be operating in survival mode, patching gaps, losing productivity, and struggling with turnover. With the advice of seasoned HR counsel, your organisation can stay lean, reactive, and proactive. An HR consultant offers objective, reflective, and proven strategies to help your workforce and your organisation evolve as a team. Wrapping Up With the help of HR consulting professionals, you can create a clear, effective plan for tomorrow’s success—today. Whether you need short-term HR advice or long-term HR solutions, outsourcing your HR needs can make workforce planning seamless and strategic. Let our outsourced HR services take the guesswork out of your future workforce strategy and help your business grow with confidence. Contact us today for outsourced HR services in Melbourne .

An effective workforce is the driving force of any successful business. But backing an effective, motivated, and compliant workforce necessitates human resource (HR) management. Many organisations, especially small and medium-sized entities (SMEs), are struggling with HR challenges, varying from worker relations to adherence to labour legislation. This is where the value of HR consulting and professional HR advice comes into play. Through utilising expert HR solutions, organisations can automate, improve workplace culture, and limit the risks associated with poor HR practice. In companies that have no internal HR department, outsourcing HR services provides a cost-effective solution to leveraging expert advice to pursue core business goals. Why HR Advice is Essential for a Strong Workforce Employee Engagement and Retention Active staff work better, are more motivated, and are dedicated to organisational goals. Professional HR advice helps organisations to develop successful employee engagement campaigns, such as: Presenting recognition and reward schemes. Conducting regular performance appraisals. Investing in professional development opportunities. With investments in employee engagement, organisations reduce the level of turnover and build loyal staff. Compliance with Employment Legislation Handling complex labour regulations and workplace regulations may be challenging. Non-compliance may draw fines in court as well as negatively impact an enterprise's reputation. HR consulting services keep businesses abreast of labour regulations, including: Fair Work policies Work-place health and safety regulations Anti-discrimination as well as equality opportunity legislations Having knowledge of HR solutions in Melbourne keeps businesses away from potential court fines as well as maintains a compliant workplace. Successful Recruitment and Onboarding Hiring the right talent is necessary to succeed at business. Outsourced HR services can assist in making the recruitment process smoother by: Developing effective job descriptions Conducting formal interviews Implementing successful onboarding programs An organised onboarding process assists in making the new hires comfortable with fitting in with the company, enhancing retention and performance. Conflict Resolution and Employee Relations Workplace conflicts, if not dealt with properly, can lead to a toxic workplace and decreased productivity. HR consulting professionals provide recommendations on: Mediation and conflict resolution Fair disciplinary procedures Creating a positive workplace culture With expert HR advice, businesses can efficiently settle employee problems and enjoy a tranquil workplace. How HR Solutions Support Business Growth Strategic Workforce Planning Businesses that plan ahead for future workforce needs can stay competitive. HR consulting services help organisations: Discover skill gaps. Plan workforce growth or restructuring. Create succession plans for leadership. Forward-looking workforce planning enables organisations to anticipate growth and industry transformation. Performance Management and Productivity Clear performance expectations and ongoing feedback are the keys to maintaining a high-performing team. HR services such as performance management systems, employee development programs, and KPI tracking improve workforce efficiency. Outsourced HR Services for Cost Efficiency Small businesses cannot always justify the cost of having an in-house HR division. Outsourcing HR services provides professional expertise at a small fraction of the cost, targeting the most important functions such as: Payroll processing Benefits management Policy creation This allows business owners to focus on revenue-generating activities while ensuring smooth HR operations. Wrapping Up A well-structured HR strategy plays an essential role in building and creating a strong team. With outsourced HR services in Melbourne , businesses are able to leverage employee engagement, compliance, and performance management to the fullest. Investing in professional HR solutions assures long-term business success and ensures an effective and good working environment. Contact us today to learn more about our exceptional outsourced HR services in Melbourne.

In this competitive business world, HR is playing a very important role in bringing up the organisation itself. Be it talent acquisition or employee engagement , it helps businesses attract and make the right environment where the talent can grow, deliver, and create success for the long term. Companies that leverage outsourced HR services gain a strategic advantage by optimising their workforce while maintaining compliance and efficiency.   Talent Acquisition and Retention
The major role of HR in the development of an organisation is to establish effective mechanisms for attracting and retaining the right talent in the organisation. A well-desired HR strategy translates into hiring skilled professionals from the market who are likely to live up to the organisation’s goals and culture. The HR reduces the employee turnover rate and improves the individuals' satisfaction level by having effective systems in place, such as effective recruitment, orientation, and training. In return, the firms that take advantage of outsourced HR in Sydney  can make use of specialised hiring expertise, which gives the assurance of asking for the best possible candidates without overstretching internal resources .   Employee Training and Development
A strong HR department will spend continuously in learning and development. Training programs help upgrade the skills of employees, boost their confidence, and improve their performance levels. Assistance to an organisation in developing customised training programs aligning to both industry trends and business needs is provided by HR consulting services. Development programs also contribute towards the way employees get engaged and keep the team looking motivated and committed to the company's goals.   Enhancing Workplace Culture and Employee Engagement
A positive workplace culture results in higher job satisfaction and subsequently increased productivity. HR professionals develop an inclusive work environment where transparency is respected and employees feel valued. The HR services play an important role in creating policies relating to diversity, equity, and inclusion, which would further lead to a well-integrated workforce. All the responsibilities like open communication, recognition of accomplishments, and the promotion of work-life balance fall under HR’s responsibilities in developing a healthy organisational culture.
Performance Management and Productivity Enhancement
A good part of effective HR management is making a clear performance expectation and feedback mechanism. Performance appraisals, goal setting, and even constructive feedback are ways to enable an employee to improve their work.
Compliance and Risk Management
Compliance with labour laws as well as industry regulations becomes important for any business. HR teams usually take up such understandings with all employment and safety measures to be adhered to in workplaces and ethical guidelines. HR consultants help managers with the practical aspects of employee contracts , work disputes, and legalities, protecting the company from risks and preventing litigation that may issue into expensive consequences. The positive side to such endeavours has resulted in employers not just avoiding fines but also giving a legally compliant work environment.
Workforce Planning and Organisational Strategy
Strategic HR planning places human capital in alignment with business objectives. For future talent needs and succession planning to ensure business continuity, HR professionals must assess workforce requirements. Companies that take advantage of HR services can develop scalable HR strategies to support their growth and adapt, thus becoming more resilient during changing market conditions.   Conflict Resolution and Employee Relations
Properly managed workplace conflicts can become stumbling blocks to productivity and morale. HR professionals mediate disputes, promote dialogue, and apply conflict resolution approaches to keep an amicable work environment. By investing in HR outsourcing, businesses gain access to the full spectrum of HR professionals experienced in employee relations who resolve issues effectively and with the utmost professional integrity.   The Value of Outsourced HR Solutions
Small and medium enterprises, having an internal HR team, can be too costly and resource-consuming. Outsourcing HR solutions provides access to an HR professional in the absence of the overhead of having an internal department. While HR specialists take charge of payroll, recruiting, compliance, and employee relations, companies are free to pursue day-to-day business operations.   Wrapping up
HR serves as a cornerstone in the development of an organisation. HR promotes compliance, strategic planning, talent management, and employee engagement. It is through HR consulting in Sydney that organisations improve productivity, cultivate workplace culture, and accelerate sustainable development. Investing in HR services in Sydney  means investing in the future of your organisation, thereby ensuring long-term success and a competitive advantage in the field. Contact us today to learn more about our outsourced HR services.

Many business owners ask, “Why do I need HR policies when I can refer to legislation like the Discrimination Act?” While legislation provides a legal framework, HR policies are the foundation of how your business operates on a day-to-day basis. They provide clear guidelines for decision-making, help employees understand their obligations, and protect your business in the event of legal disputes. Without them, businesses risk inconsistency, confusion, and potential legal vulnerability. The Role of HR Policies in Business Operations Effective HR policies are key to creating a well-organised and compliant workplace. They set expectations, ensure consistency, and help manage risks. Without clear policies, businesses can experience inconsistencies in handling issues like employee behaviour, leave entitlements, or workplace safety. Here’s why HR policies should be in place and regularly updated: 1. They Provide Clear Guidelines for Decision-Making HR policies ensure that managers and employees have a clear understanding of workplace expectations. Without them, decisions may be made inconsistently, leading to confusion and potential claims of unfair treatment. For example, imagine a business where managers handle disciplinary matters based on their own discretion instead of following a standardised process. One manager may issue a verbal warning for poor performance, while another might immediately terminate employment for a similar situation. This inconsistency could lead to claims of unfair dismissal or discrimination under employment law. A well-documented disciplinary policy ensures fairness, transparency, and legal compliance, reducing the risk of disputes and potential claims under the Fair Work Act. 2. They Help Employees Understand Their Obligations Policies are not just for management—they guide employees on their rights and responsibilities. From workplace behaviour to leave entitlements, HR policies clarify expectations, reducing misunderstandings. Take a social media policy, for instance. Without one, an employee might believe they can post about work matters freely. If an employee posts something inappropriate that damages the company’s reputation, a lack of a clear policy could make it difficult to take appropriate action. 3. They Outline Processes and Consequences for Breaches A business without structured policies can struggle to manage breaches of conduct effectively. If an employee violates workplace health and safety rules and there is no policy outlining consequences, enforcing disciplinary action becomes challenging. A solid HR policy clearly defines what constitutes a breach and the steps management will take. For instance, a workplace harassment policy should not only define unacceptable behaviour but also specify how complaints will be handled and potential consequences for misconduct. 4. They Protect Employers in Legal Proceedings Having clear policies in place can serve as a crucial defense in legal disputes. Courts and tribunals often look at whether a company had well-communicated policies and whether they were followed consistently. For example, if an employee claims they were unfairly dismissed, a business with a well-documented performance management policy can demonstrate that they followed a fair process, reducing legal risk. Common Blind Spots in HR Policies Even businesses with HR policies in place can have gaps that leave them vulnerable. Here are some common blind spots and how to avoid them: Outdated Policies: Laws, workplace culture, and industry practices change. Regularly review and update your policies to keep them relevant. Assuming “Nothing Will Go Wrong” : Even if your business has never faced a complaint or legal issue, proactive policies help prevent future problems. Lack of Employee Acknowledgment : Ensure employees sign off on policies so there is a record of understanding and agreement. Failure to Reissue Policies : Policies issued at onboarding may be forgotten. Regularly communicate key policies and any updates. No Training on Policies : Employees and managers must be trained on policies to ensure compliance. Poorly Written Policies : Ensure policies are clear, free of jargon, and easy to understand. It is important too that there is a degree of flexibility to cater for varying situations. Uninformed Managers : Managers need to be trained to apply policies consistently to avoid claims of unfair treatment. Frequently Asked Questions About HR Policies 1. Should all policies be combined into one HR handbook or kept as separate documents? We recommend keeping policies as separate documents rather than consolidating them into a single HR handbook. While handbooks provide an overview of workplace expectations, they often lack the detail needed for specific policies and procedures. Keeping policies separate allows for easier updates and ensures that procedures are clearly outlined. It also makes it simpler for businesses to distribute and revise policies without having to overhaul an entire handbook. 2. How often should HR policies be reviewed and updated? HR policies should be reviewed at least annually or whenever significant legislative changes occur. A proactive approach ensures your business remains compliant and that employees are aware of the latest updates. Major policy changes should be communicated promptly to all staff. 3. What happens if an employee refuses to sign off on a policy? If an employee refuses to acknowledge a policy, it’s important to document the refusal and discuss the reason behind it. Employers should explain that policies are in place to ensure a fair and compliant workplace. If refusal continues, it may be treated as a performance issue. 4. Do we need to provide training on HR policies? Yes, simply having policies is not enough. Employees and managers need to understand them. Conducting training sessions, holding discussions, and providing refresher courses help ensure policies are followed correctly. 5. What are the risks of not having proper HR policies? Without clear HR policies, businesses risk inconsistent decision-making, legal non-compliance, and employee disputes. This can lead to claims of unfair treatment, workplace grievances, or even legal action if an issue escalates. Final Thoughts HR policies are not just bureaucratic documents; they are essential tools that protect your business and provide structure to your workplace. They ensure consistency in decision-making, help employees understand expectations, and act as a safeguard in legal matters. Regularly reviewing and updating policies ensures they remain relevant and effective. By addressing blind spots and making sure your policies are well-structured and communicated, you can create a workplace that is both legally compliant and supportive of business success. Investing time in maintaining strong HR policies today can save significant headaches in the future. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.  Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR professionals boasts an impressive track record, having excelled in senior management roles across various organisations.  No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.  email us now at hr@esshr.com.au

From 26 February 2025 , a major change to the National Employment Standards (NES)  will give eligible casual employees the right to request a transition to permanent full-time or part-time employment. This is known as the employee choice pathway  and is an important development in workplace rights for casual workers. What is the Employee Choice Pathway? The employee choice pathway  is a new legal entitlement under the NES that allows eligible casual employees  to notify their employer that they wish to transition to permanent employment . Unlike the previous casual conversion provisions, under this pathway, an employer must  respond to the request and can only refuse based on specific, limited reasons . Who is Eligible? Casual employees can notify their employer in writing  that they want to transition to permanent employment if they meet the following conditions: ✔ Worked for the employer for at least six months  (or 12 months for small businesses with fewer than 15 employees). ✔ No longer meet the definition of a casual employee  (i.e., there is now a firm advance commitment  to ongoing work). ✔ No current dispute with the employer about transitioning to permanent employment. ✔ Have not been refused a previous request within the last six months. Small Business Employees – Different Rules Apply Casual employees working for small businesses (fewer than 15 employees)  before 26 August 2024  will not be able to access the employee choice pathway until 26 August 2025 . Until then, the previous casual conversion rules  will continue to apply. How Can a Casual Employee Request to Become Permanent? Eligible employees must submit a written notice  to their employer, clearly stating their request to change from casual to full-time or part-time employment . The employer then has a legal obligation  to respond. Employer Obligations – What Happens Next? Once an employer receives a written request , they must: ✔ Consult with the employee  about the request before making a decision. ✔ Respond in writing within 21 days , stating whether the request is accepted or refused . ✔ If accepting the request, discuss employment conditions , including hours, pay, and start date as a permanent employee. ✔ If refusing the request, provide valid reasons  in line with NES requirements. When Can an Employer Refuse a Request? An employer can only refuse the request based on specific, limited reasons , such as: ✔ The role will significantly change  or no longer be available  in the near future. ✔ The employee’s hours will be reduced , or their employment will end within the next 12 months . ✔ There are reasonable business grounds  to deny the request. What If There’s a Dispute? If an employee disagrees with the employer’s decision, they can: ✔ Discuss the issue with their employer  to resolve it internally. ✔ Seek advice from the Fair Work Ombudsman . ✔ Apply to the Fair Work Commission  to help resolve the dispute. What Should Employers and Employees Do Now? Casual employees  should check if they are eligible and prepare their written notification  if they wish to transition. Employers  should review their workforce needs  and prepare for potential requests. Ensuring compliance with Fair Work obligations  is crucial to avoid disputes. Need Help? If you need assistance understanding these changes or preparing for casual employment transitions, our HR experts can guide you through the process. Get in touch today!

Most business people face a plethora of challenges; however, there is one specific area that leads to the success of managing a business-a human resource is the most prominent one. Very few business leaders attempt to independently handle HR; however, as the company develops, there becomes a need to hire an outsourced HR consultant. Here are some of the key signs that indicate your business needs HR services. High Employee Turnover Rate If your organisation has problems retaining employees, it might indicate a problem. High turnover is often related to employee dissatisfaction, which may arise from management, lack of promotion opportunities, or an unhealthy work environment. An experienced HR consulting firm can help determine the root causes of turnover and then offer practical strategies to increase employee engagement and satisfaction. Difficulty in Hiring the Right Talent Talent attraction and retention is a core activity for any business to grow. If your recruitment process is cumbersome, costly, and unfruitful in yielding the desired results, HR solutions can assist. HR consultants work with their clients to devise appropriate recruitment strategies that streamline the recruitment process and ensure new hires fit well into your organisational culture and goals. Compliance and Legal Challenges Labour and employment laws change constantly. Inability to be compliant with labour laws, wage regulations, and workplace policies leads to a fine and litigation problems. An HR advisor in Perth ensures compliance by creating the right policies and training the staff on the law of employment in case your business cannot maintain its compliance with such legal aspects. Workplace Conflict and Employee Relations Issues Unresolved workplace conflicts can significantly impact productivity and morale. Whether it’s disputes between employees, manager-employee conflicts, or issues related to discrimination or harassment, professional HR services can help mediate conflicts and establish effective communication channels to foster a positive work environment. Lack of Employee Training and Development Failure to invest in the development of employees puts a business at risk of stagnation. When a company fails to offer regular training & development opportunities, it will leave its employees demotivated or underprepared for optimum performance. A consulting professional can create a tailored training program for enhancing the skills of the employees and ultimately for the overall growth of the business. No Clear HR Policies and Procedures Without well-defined HR policies, businesses may face inconsistent decision-making and inefficiencies. If your company lacks structured HR policies on recruitment, benefits, performance reviews, or employee conduct, HR solutions in Perth can help develop comprehensive guidelines to ensure smooth operations. Low Employee Engagement and Productivity Low engagement at times results in loss of morale and productive levels. A good HR advisor can engage employees through recognition programs, flexible work arrangements, and career development, which are shown to improve motivation and performance. Payroll and Benefits Management Problems Handling payroll, administering benefits, and compensating the employees can be complicated and very time-consuming. A mistake in processing payroll or allocation of benefits may lead to dissatisfaction and, worse, complications with the law. HR consulting services can help with these administrative tasks, guaranteeing accuracy and efficiency in the payroll and management of benefits. Struggles with Organisational Growth and Change As businesses grow, the demands on HR become complex. If your company is going through mergers, restructuring, or scaling up operations, then HR solutions help manage workforce transitions effectively. The HR professionals will assist in planning, restructuring teams, and implementing new policies according to business growth . Absence of Performance Management Systems Employee performance tracking is a critical function for business success. Without a proper performance management system, the evaluation of an employee's contributions and decisions to promote, train, or terminate him/her will be challenging. HR services in Perth can implement structured performance evaluation processes in order to provide constructive feedback and growth opportunities for employees. Wrapping Up In case your business has been experiencing these challenges, an investment in HR consulting will offer you the experience you need to resolve workforce issues and increase productivity. From hiring and compliance to employee engagement and performance management, our professional HR advisor in Perth can guide you on customised HR solutions for the success of your business. Contact us today to learn more about our outsourced HR consulting in Perth and its surrounding areas.

It's not easy to run a small business because of much responsibility, like tracking changes in labour laws and regulations. This complexity is often too heavy for the mind of a small business owner without a dedicated HR team. Outsourcing the HR function allows small businesses access to expert advice from an HR consultant, advisory HR, or tailored HR services that will help them in their pursuit of maintaining compliance and finding their way up. Here is how outsourced HR services will ensure compliance for a business. Professional Advice on Labour Laws and Regulations Labour laws are constantly changing, and most of the owners of small businesses are unable to track them. HR service outsourcing keeps providing professional HR consulting on federal, state, and local regulations to help businesses stay compliant. From fair wage and hour laws to workplace safety requirements, the HR expert keeps a business one step ahead of the changing legal situations. Accurate Documentation and Employee Record Any employment contract, employee handbook, and performance record must be maintained correctly in accordance. HR outsourcing ensures that the employment contracts, employee handbooks, and performance records are kept perfectly. The HR solutions in Melbourne keep certification, training records, and disciplinary actions so that legal fights can be averted. Payroll and Benefits Administration Non-compliance may result from poor employee satisfaction. Payroll and benefit mismanagement may be one of the causes. HR consulting in Melbourne helps companies set up proper payroll systems and tax withholdings and manage employee benefits under all applicable labour laws. Employee Training and Development Compliance also includes training on workplace policies, diversity, and harassment prevention. HR outsourcing services provide training programs tailored to the needs of a business so that employees can be educated on the various company policies and legal requirements. Compliance with Workplace Safety Standards A safe workplace is legally mandated. HR solutions involve safety audits at the workplace and the development of safety policies to avoid workplace hazards and the associated fines. An effective recruitment and onboarding process Bad recruitment practices result in claims of discrimination and lawsuits . HR advisory services are involved in the design of a structured recruitment and onboarding process, equal opportunity recruitment, proper background checks, and compliance with the law in the recruitment process. Effective Management of Employee Relations and Conflict Conflicts at work and complaints by employees must be handled professionally so as not to trigger any compliance risk. Outsourced HR services guide on how to handle conflicts, disciplinary actions, and termination in a fair and legal manner. Audit and Compliance Review Assistance The audits can overwhelm small businesses, especially regulatory. Solutions in the area of HR include compliance review periods , pinpointing areas at risk, and putting corrective measures in place for a business to be confident while facing audits. Scalability and Economical Outsourcing the services will ensure flexible, scalable solutions on HR in addition to savings on the expert cost of employing a full-time HR department and, therefore, make inexpensive. Updating Policies The human resource policies have to be dynamic; that means with the changing legality of things and best practices in the respective industries. These consulting experts ensure a business checks and updates their policies in relation to compliance with current laws and the demanded workforce. Wrapping Up Outsourcing HR can grant small businesses expert advice from our experienced HR consultant, as well as a personalised HR solution that will ensure compliance and the operation of the organisation. In this sense, businesses are able to grow with minimal legal risk and a productive workplace. Contact us today to learn more about our outsourced HR services in Melbourne .

Selecting the right HR service provider is crucial for the success of your business. Whether you are a small startup or an established enterprise, finding a partner that understands your specific needs can make a significant difference in managing your workforce effectively. From HR consulting to outsourced HR services, there are various options available to help streamline your human resources functions. Here is how to identify the best HR service provider for your business. Assess Your Needs Before you begin searching for HR solutions, it is essential to evaluate your business requirements. Ask yourself: Do you need assistance with recruitment, compliance, payroll, or employee training? Are you looking for short-term HR consulting or long-term outsourced HR services? What is your budget for HR support? Understanding your needs will help you narrow down providers that specialise in the areas you require and offer services within your budget. Look for Expertise and Experience When choosing an HR advisor, experience matters. Look for providers with a proven track record in delivering HR solutions for businesses similar to yours. Experienced providers understand industry-specific challenges and can offer tailored advice to address them. Additionally, check if the provider stays up-to-date with the latest HR laws and regulations to ensure compliance. Evaluate the Range of Services Offered The best HR service providers offer a comprehensive range of services, including: Recruitment and onboarding: Helping you find and integrate the right talent. Employee relations: Addressing workplace conflicts and fostering a positive environment. Compliance management: Ensuring your business adheres to labour laws and regulations. Payroll and benefits advice: Simplifying payment processes and managing employee benefits. Performance management: Assisting in setting goals and evaluating employee performance. By choosing a provider that offers a wide array of HR solutions, you can have all your human resource needs met under one roof. Check for Customisation Options Every business is unique, so a one-size-fits-all approach might not work for your HR needs. Look for HR consulting in Sydney that offers customisable solutions tailored to your organisation’s goals and culture. A provider that takes the time to understand your business and aligns its services with your objectives is more likely to deliver value. Consider Technology Integration Modern HR solutions often leverage technology to improve efficiency and accuracy. Check if the provider uses advanced HR management software for tasks such as employee onboarding, performance tracking, and compliance monitoring. User-friendly platforms can save time and reduce errors, allowing you to focus on your core business activities. Assess Communication and Support Effective communication is key to a successful partnership with your HR advisor. Choose a provider that is responsive, transparent, and proactive in addressing your concerns. Whether it is a dedicated account manager or a customer support team, having reliable points of contact ensures smooth collaboration. Review Client Testimonials and References One of the best ways to gauge the reliability of an HR service provider is by checking their client reviews and testimonials. Positive feedback from other businesses can give you confidence in their ability to deliver quality outsourced HR services. Don’t hesitate to ask for references and speak with existing clients to get an insider’s perspective. Compare Pricing Models Cost is an important factor when choosing HR solutions. Providers may charge fixed monthly fees, hourly rates, or per-service fees. Compare pricing models from different providers to find one that offers the best value for your money. While it is tempting to choose the cheapest option, prioritise quality and expertise to avoid potential issues down the line. Finalise Your Decision Once you have evaluated potential HR service providers based on their expertise, services, technology, and pricing, it’s time to make your decision. Select a provider that aligns with your business goals, offers the support you need, and fits within your budget. Wrapping Up Choosing the best HR service provider for your business is a strategic decision that can impact your company’s growth and success. By focusing on your specific needs, assessing expertise, and considering factors such as technology and communication, you can find an HR advisor that delivers effective outsourced HR services. Partnering with us ensures that your human resources functions are managed efficiently, allowing you to concentrate on achieving your business objectives. Contact us today to learn more about our outsourced HR services in Perth and its surrounding areas.

As businesses grow, managing human resources (HR) becomes increasingly complex. Tasks like recruitment, compliance, payroll, and employee engagement can consume valuable time and resources. Outsourcing HR provides a strategic solution, allowing companies to focus on core operations while professionals handle the intricacies of HR. Choosing outsourced HR services not only streamlines operations but also fosters growth and scalability, especially for small and medium enterprises (SMEs).   The Role of HR in Business Growth   HR is the backbone of any organisation, ensuring employees are hired, managed, and retained effectively. However, as businesses expand, in-house HR teams often struggle to keep up with the increasing demands. This is where HR consulting comes into play, offering tailored HR solutions that align with a company’s unique needs and goals.   Key Benefits of Outsourcing HR   Access to Expertise   Outsourcing HR connects your business with experienced professionals who specialise in various HR functions. From compliance to employee relations, these experts bring industry knowledge and best practices, helping you navigate complex HR challenges.   Cost-Effectiveness   Maintaining an in-house HR team can be expensive, particularly for SMEs. Outsourced HR services eliminate the need for full-time staff, offering scalable solutions that adapt to your business size and requirements.   Enhanced Compliance   HR professionals stay updated on ever-changing labour laws and regulations, ensuring your business remains compliant. This reduces the risk of legal issues and penalties, giving you peace of mind as you grow.   Focus on Core Activities   By delegating HR tasks to professionals, your team can focus on strategic initiatives and operational priorities. This enhances productivity and accelerates business growth.   Flexibility and Scalability   Outsourcing offers flexibility to adjust services based on your company’s evolving needs. Whether you are scaling up or down, HR solutions can be customised to match your current requirements.   How Outsourcing HR Drives Scalability   Streamlined Recruitment   As businesses expand, finding and onboarding the right talent becomes critical. HR consultants manage end-to-end recruitment processes, from job postings to interviews, ensuring you hire skilled candidates who align with your company culture.   Employee Development   Training and development programs are essential for employee growth and retention. Outsourced HR providers design and implement customised training initiatives that equip your team with the skills needed to drive business success.   Improved Retention   High turnover can disrupt growth. HR professionals analyse employee satisfaction, implement retention strategies, and foster a positive workplace culture to reduce attrition rates.   Efficient Payroll Management   Payroll errors can lead to employee dissatisfaction and legal complications. Outsourced HR services in Melbourne  advise on how best to streamline payroll processes, ensuring accuracy and timely payments, freeing you from administrative hassles.   Tailored HR Solutions for Every Stage   Every business has unique HR needs based on its size, industry, and growth phase. HR consultants offer tailored solutions, including:   Policy Development: Creating clear, comprehensive HR policies.   Performance Management:  Establishing evaluation and feedback systems.   Benefits Administration:  Managing employee benefits and perks.   Conflict Resolution:  Addressing workplace disputes professionally.   These customised HR solutions ensure your business has the support it needs to thrive at every stage.   The Strategic Advantage of HR Consulting   HR consultants provide more than just administrative support—they offer strategic insights that drive business growth. By analysing workforce trends, optimising organisational structures, and implementing innovative solutions, HR consultants help position your company for long-term success.   Why Choose Outsourced HR Services?   Outsourcing HR is an investment in efficiency and growth. Here is why it is a game-changer:   Scalable Support: Services grow with your business, adapting to changing needs.   Time Savings : Delegating time-consuming HR tasks frees up valuable resources.   Risk Mitigation:  Expert guidance reduces compliance and legal risks.   Employee Satisfaction: Enhanced HR processes improve employee experiences.   Wrapping Up   Outsourcing HR is a smart, strategic choice for businesses aiming to scale effectively. By leveraging outsourced HR services, companies gain access to expertise, streamline operations, and ensure compliance, all while focusing on their core objectives. Whether you need recruitment assistance, payroll management, or comprehensive HR consulting in Melbourne , outsourcing provides the flexibility and support required to achieve sustained growth.   Invest in our professional HR solutions today and empower your business to thrive in a competitive landscape. Contact us  today to learn more about our outsourced HR services in Melbourne and its surrounding areas.

From 1 January 2025, intentional underpayment of wages or entitlements  will become a criminal offence in Australia. Importantly, these laws target deliberate actions—not honest mistakes. Here’s what employers need to know about the changes and their implications. What Constitutes a Criminal Offence? An employer may be found guilty of a criminal offence if they: Were required to pay amounts such as: Wages or paid leave entitlements  to an employee. Contributions on behalf of the employee or for their benefit , such as superannuation or salary sacrifice arrangements. Intentionally engaged in conduct that results in these amounts not being paid  on or before the due date. This offence applies only to intentional underpayments occurring after the provisions come into effect. It can also include conduct that began prior to 1 January 2025 but continued after the new laws commence. Both individuals and companies can be prosecuted under these laws. Enforcement and Penalties The Fair Work Ombudsman (FWO) will: Investigate suspected cases of criminal underpayment. Refer matters to the Commonwealth Director of Public Prosecutions (CDPP)  or the Australian Federal Police (AFP)  for potential criminal proceedings. Penalties  for convicted offenders may include: Monetary fines. Imprisonment. Both fines and imprisonment. The decision to refer a matter for prosecution depends on the availability of evidence and whether it serves the public interest, as outlined in the FWO’s Compliance and Enforcement Policy . Exceptions to the Law The criminal provisions do not apply in cases of underpayment related to: Superannuation contributions. Long service leave payments. Leave connected to being the victim of a crime. Leave for jury duty or emergency service duties. For detailed rules and penalties, refer to the section on Criminal Prosecution . Cooperation Agreements Employers who voluntarily disclose conduct that may constitute a criminal offence can apply for a cooperation agreement . A cooperation agreement prevents the FWO from referring specified conduct for criminal prosecution. However, the FWO may still pursue other enforcement actions, such as civil litigation. Voluntary Small Business Wage Compliance Code Small businesses have additional safeguards under the Voluntary Small Business Wage Compliance Code . If a small business employer underpays an employee and complies with the Code, the FWO cannot refer them for criminal prosecution. Increased Civil Penalties for Wage Underpayments From 1 January 2025 , civil penalties for underpayment violations will increase significantly for non-small business employers. Courts can impose penalties of: Up to three times the value of the underpayment , or The relevant penalty unit amount, whichever is higher. Serious Contraventions and Civil Penalties Changes to civil penalty laws, which started on 27 February 2024, include: Doubling maximum penalties for non-compliance with compliance notices. Increasing penalties by five times  for specific civil remedy contraventions by businesses with 15 or more employees. Selected civil remedy contraventions  include breaches of: The National Employment Standards . Award and agreement obligations. Pay slip and record-keeping requirements. Compliance notice obligations. The threshold for a serious contravention  has also changed. Previously, serious contraventions required knowing and systematic  breaches. Under the new laws, serious contraventions now include breaches that are knowing or reckless . The FWO has updated its guidance on Workplace Investigations  and Litigation  to reflect these changes. What This Means for Employers These new laws signal a significant shift in the regulatory landscape for Australian employers. Intentional underpayment of employees can now result in criminal charges, hefty fines, and even imprisonment. Employers must ensure compliance with workplace laws to avoid severe consequences. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.  Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.  No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.  email us now at hr@esshr.com.au

The Australian Criminal Intelligence Commission (ACIC) is set to implement significant updates to the Nationally Coordinated Criminal History Check (NCCHC) Terms of Use , effective 1st January 2025 . These changes will have implications for businesses, particularly in staffing, recruitment, and labour hire. Understanding the key updates is crucial to ensure compliance and seamless operations in the new year. Key Changes to the NCCHC Terms of Use Streamlined Identity Document Requirements The number of identity documents required will be reduced from four plus a Linkage of Identity to three plus a Linkage of Identity. This simplifies the process for applicants while maintaining robust identity verification standards. Restrictions on Sharing Police Check Certificates Under the new terms, Customers are prohibited from sharing Police Check Certificates with third parties, even if the applicant provides explicit consent. This change reinforces data privacy and security, ensuring that criminal history information remains confidential between the applicant and the requesting organisation. Eligibility to Administer NCCHCs From 1st January 2025, staffing and labour hire companies can only administer NCCHCs for their own prospective employees. For candidates being placed in permanent roles with clients, staffing companies will no longer be authorised to perform these checks. This marks a significant shift from the current practice and requires staffing firms to adjust their processes accordingly. Requirements for Minors (Under 18) A parent or guardian must now provide a Linkage of Identity  for individuals under the age of 18, not merely a signature and date. This change ensures a higher level of identity assurance for minors undergoing criminal history checks. Impact on Staffing and Labour Hire Companies The updated agreement introduces several operational changes for staffing and recruitment agencies. Here's how these changes might affect your processes: Administering NCCHCs Agencies can continue to perform NCCHCs for candidates being considered for temporary or contract roles. However, for permanent placements, the responsibility for criminal history checks will now lie with the hiring client. Process Adjustments Companies must align their policies and procedures to comply with the restriction of administering checks solely for their own prospective employees. Clear communication with clients about these changes will be essential to avoid disruptions during permanent placements. Enhanced Data Privacy The prohibition on sharing Police Check Certificates ensures sensitive information is handled securely. Agencies may need to update internal guidelines and client agreements to reflect this new restriction. Compliance for Minor Applicants Agencies working with minors must ensure that a parent or guardian provides the necessary Linkage of Identity, which may involve additional verification steps. Preparing for Compliance To ensure your organisation is ready for these changes: Update Processes and Training: Train staff on the new requirements for administering NCCHCs, including documentation changes and the prohibition on sharing certificates. Communicate with Clients: Inform clients of the new terms, especially the limitations on checks for permanent placements. Review Agreements: Update contracts and policies to align with the ACIC’s revised Terms of Use. Focus on Data Privacy: Strengthen measures to safeguard sensitive applicant information in line with the updated privacy restrictions. Conclusion The ACIC’s updated NCCHC Terms of Use emphasise streamlined identity verification, enhanced privacy, and clarity on who can administer checks. These changes, while requiring adjustments in existing practices, are designed to improve the integrity and security of the criminal history check process. Staffing and recruitment agencies should act now to ensure a smooth transition by the 1st January 2025 deadline. By staying informed and proactive, your organisation can continue to deliver compliant and effective hiring solutions while maintaining trust with clients and candidates.

The Fair Work Commission (FWC) has made final decisions which will affect employees classified at the lowest classification level in several modern awards. For the vast majority of the impacted awards, the changes will take effect on 1 January 2025. It's essential employers are across their obligations. The affected awards fall into three categories: Group 1: New rules about how long employees can stay at the introductory level The first group of awards is where there will be new rules about introductory levels. This will operate so that employees can only stay at the lowest classification level in the award for a maximum period of time. This will vary from award to award, but the maximum period that an employee will be able to remain at the introductory level under any affected award will be 6 months. After this, the employee must progress to the next classification level. For example, under the Manufacturing and Associated Industries and Occupations Award 2020 (‘Manufacturing Award’) the lowest classification is currently the “C14 – Engineering/Manufacturing Employee—Level 1” classification. Wording will be inserted into the Manufacturing Award to say that an employee will only be able to work in this classification for a maximum of 3 months. After that they will need to be classified at the next level up, ie the “C13 – Engineering/Manufacturing Employee—Level 2” classification. One of the consequences of these changes will mean that where an employer currently has employees who have been employed under the lowest classification level for longer than the new maximum period, they will need to be automatically re-classified at the next level up (and receive the appropriate pay rise) from 1 January 2025. For example, if someone under the Manufacturing Award has already been at C14/Level 1 for at least 3 months as of 1 January 2025, they will need to move to C13/Level 2 on this date. It’s therefore crucial that any employer covered by any of the awards affected by this decision understands the new maximum period that employees can be classified at the lowest classification level under their award. Awards changing on 1 January 2025 Airline Ground Staff Award Amusement Award Animal and Veterinary Services Award Australian Government Award Dry Cleaning and Laundry Award Fitness Award Food and Beverage Manufacturing Award Funeral Award Graphic Arts and Printing Award Joinery Award Live Performance Award Manufacturing Award Marine Tourism and Charter Vessels Award Meat Award Pest Control Award Port Authorities Award Textile, Clothing, Footwear and Associated Industries Award Timber Award Travelling Shows Award Vehicle Award Awards changing on 1 April 2025 Horticulture Award Group 2: New rates of pay for employees at some of the lowest classification levels The second group of awards will see an increased rate of pay for employees at some of the lowest classification levels. For example, under the Children’s Services Award 2010, the Level 1.1 classification currently has a minimum rate of pay of $910.90 per week or $23.97 per hour. As of the first full pay period on or after 1 January 2025, this rate will increase to $915.90 per week or $24.10 per hour. Awards changing on 1 January 2025 Architects Award Children’s Services Award Business Equipment Award Electrical, Electronic and Communications Contracting Award Group 3: Awards with new rules about how long an employee can stay at the introductory level AND pay increases The third group of awards contain new rules about the maximum period of time an employee can stay at the introductory level, plus pay rate increases for some of the lowest classifications. All of these changes take effect on 1 January 2025, except for the Pastoral Award which is being amended from 1 April 2025. A list of all of the impacted awards is set out below (together with a link to the FWO’s updated pay guides). Awards changing on 1 January 2025 Air Pilots Award Aquaculture Industry Award Cement, Lime and Quarrying Award Concrete Products Award Cotton Ginning Award Rail Industry Award Seafood Processing Award Seagoing Industry Award Sugar Industry Award Wine Industry Award Wool Storage, Sampling and Testing Award Awards changing on 1 April 2025 Pastoral Award About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.  Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.  No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.  email us now at hr@esshr.com.au

The end-of-year holiday season brings a unique set of joys and challenges to the workplace. For employers, it's a time to balance holiday cheer with workforce needs. For employees, understanding holiday entitlements and workplace expectations can make the season smoother. Let’s break down the key aspects to keep both employers and employees on the same page as we approach the festive period. Planning for Holiday Operations Businesses vary greatly in their holiday plans. While some may experience a surge in activity, requiring extended hours and extra staffing, others might take this time for a complete or partial shutdown. Clear communication around these plans can ensure everyone knows what to expect. Requiring Annual Leave During a Shutdown If your business plans a temporary closure, known as a ‘shutdown,’ it’s essential to understand the conditions around requiring employees to take annual leave during this period. In many cases, awards or agreements allow employers to direct employees to use their annual leave, but the process often involves: Providing Reasonable Notice: Most awards specify that employees must receive notice of the shutdown at least four weeks in advance. Written Communication : To avoid misunderstandings, notify employees in writing about the shutdown dates and the requirement to take leave. It’s important for employers to review specific awards and agreements, as requirements can vary. In cases where the award or agreement does not cover shutdowns, employees may still choose to take annual leave or unpaid leave during the closure with mutual agreement. For Employees Without Sufficient Leave Employees who don’t have enough annual leave to cover the shutdown period have several options, depending on the award or agreement. These might include taking annual leave in advance, unpaid leave, or even paid leave in advance if an agreement is reached with the employer. Working Overtime and on Public Holidays The holiday season often includes extra demands on many businesses, particularly in retail, hospitality, and customer service. Employers can request employees to work overtime or on public holidays if the request is reasonable and communicated well in advance. Factors to consider when determining a ‘reasonable’ request include: Business needs during the holiday period The employee’s role and personal commitments Advance notice provided to the employee Any existing terms in the employment contract Remember that employees retain the right to refuse if they have reasonable grounds, particularly around family commitments or caring responsibilities. Example: Working on Boxing Day Imagine a retail manager asked to work on Boxing Day for a post-Christmas sale. If the request aligns with the business’s needs, industry norms, and the manager’s role expectations, it’s likely considered reasonable. Many awards and agreements will also provide employees with additional compensation, such as penalty rates, extra leave, or another day off in lieu for holiday work. Public Holiday Pay Entitlements Employees who do not work on a public holiday but would normally be scheduled for that day are entitled to be paid their usual rate for those hours. Importantly, employers cannot alter an employee’s roster to avoid paying public holiday rates. For employees who choose to work on a public holiday, additional entitlements may include higher pay rates or alternative leave options. For the most accurate pay calculation, employers and employees can use online pay calculators. Conclusion Closing over Christmas can be a wonderful way for businesses to allow their employees to enjoy the holiday season, but it comes with specific employer obligations. By giving adequate notice, addressing holiday pay and leave entitlements, managing annual leave requests, implementing temporary closure policies, maintaining open communication, and ensuring health and safety, employers can create a smooth and stress-free Christmas shutdown. This not only supports employee well-being but also fosters a positive work environment that can lead to increased productivity and loyalty when the business reopens in the new year. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.  Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.  No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.  email us now at hr@esshr.com.au

Starting August 26, 2024, there are significant updates to how independent contractors are defined and protected under the Fair Work Act. These changes could impact how you classify and manage your workforce, so it's essential to understand what’s coming. Redefining Employment: What’s New? A new definition is being introduced to help clarify who is considered an ‘employee’ and who is an independent contractor. The focus will now be on the actual working relationship rather than just the terms written in the contract. This means: The practical reality of how the work is performed will be considered, not just what’s written on paper. The nature of the relationship between the worker and the business will be closely examined. This change could lead to some working relationships being reclassified, which might alter the rights and obligations of those involved. If the terms of your contract don’t match the actual work arrangement, it’s time to review them. Opt-Out for High Earners There’s an important option for contractors who earn above a certain threshold (yet to be determined). These high-earning contractors can choose to ‘opt out’ of the new definition of ‘employee’ and ‘employer’ through a simple notification process. As an employer, you can offer this option if you believe a worker might be misclassified under the new rules. Remember, a contractor can revoke their opt-out notice at any time, so staying on top of these communications is crucial. Sham Contracting: Tightened Defenses As of February 27, 2024, the rules around sham contracting have been strengthened. Sham contracting occurs when an employer wrongly classifies an employee as an independent contractor to avoid certain obligations. The defense against claims of sham contracting has shifted from a ‘recklessness’ test to a ‘reasonableness’ test. Now, to defend against a sham contracting claim, you must prove that, at the time of engagement, you had a reasonable belief that the worker was a genuine contractor. This change makes it more challenging to defend improper classifications, so it's important to be diligent in how you categorise your workers. Unfair Terms in Contracts: New Protections for Contractors Starting August 26, 2024, contractors will have the right to challenge unfair terms in their contracts. If a contractor believes that their services contract contains unfair terms, they can apply to the Fair Work Commission for a review. The Commission will have the authority to modify, set aside, or amend contracts with unfair terms. However, this protection won’t apply to contractors who earn above the contractor high income threshold. These high earners will need to seek remedies through the Independent Contractors Act 2006 if they believe their contracts are harsh or unfair. Setting Minimum Standards for Contractors New frameworks are also being introduced to set minimum standards for certain independent contractors, particularly those working on digital labor platforms (like gig economy workers) and those in the road transport industry. These changes aim to provide better protections and fairer working conditions for contractors in these sectors. What You Should Do Next Review Contracts:  Ensure that the terms of your contracts accurately reflect the working relationships and comply with the new definitions. Educate Your Team:  Make sure that those responsible for managing contracts and hiring understand the new requirements and how they affect your business. Prepare for Opt-Out Notices:  Have a process in place to handle opt-out notices from high-earning contractors. Stay Informed:  Keep up to date with the latest information from the Fair Work Commission and adjust your practices as necessary. These changes are designed to bring more clarity and fairness to contractor arrangements, but they also mean that employers need to be more vigilant in how they classify and manage their workforce. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.  Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.  No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.  email us now at hr@esshr.com.au

Starting August 26, 2024, a new workplace law will take effect that grants eligible employees the "right to disconnect" outside of their working hours. This change could have a significant impact on how you manage employee communication and expectations. Here’s what you need to be aware of and how to prepare. What is the Right to Disconnect? From August 26, 2024, for larger businesses (and from August 26, 2025, for small businesses), eligible employees will gain the right to disconnect from work outside of their official hours. This means that employees can refuse to monitor, read, or respond to any work-related contact from their employer or third parties once they’ve clocked out, unless their refusal is deemed unreasonable. This right also covers any attempts to contact the employee outside their working hours. When is Refusal Considered Unreasonable? Determining whether an employee’s refusal to stay connected is unreasonable will depend on several factors: Reason for Contact:  Why the contact is necessary. Nature of the Contact:  How the communication is made and its potential disruption to the employee. Compensation:  Whether the employee is paid or compensated for being available or for working beyond their standard hours. Role and Responsibility:  The employee’s position and level of responsibility within the company. Personal Circumstances:  Including the employee’s family or caregiving duties. These are not the only factors—other considerations may come into play depending on the specific situation. Awards and the Right to Disconnect By August 26, 2024, all industry awards must include a ‘right to disconnect’ provision. This means that awards will be updated with specific rules that explain how this new right will apply to different sectors and job types. It’s essential to stay informed about how these changes will affect your industry. Handling Disputes Disputes over an employee’s right to disconnect should first be addressed at the workplace level. If a resolution isn’t possible internally, either party—employee or employer—can bring the issue to the Fair Work Commission. The Commission has several tools at its disposal, including: Issuing a stop order to prevent further contact. Facilitating discussions or holding a conference to resolve the dispute. Using a combination of the above methods. Understanding the Role of the Fair Work Ombudsman vs. the Fair Work Commission It's important to clarify that the Fair Work Commission is the national workplace relations tribunal, handling disputes and regulating registered organisations. On the other hand, the Fair Work Ombudsman provides advice and assistance on workplace laws. Protections Under the Right to Disconnect The right to disconnect will also be recognised as a workplace right under general protection laws. These protections ensure that all employees have specific rights under the Fair Work Act, which must be respected by employers. Action Steps for Employers Review Communication Policies:  Update your internal policies to reflect the new right to disconnect and ensure all employees are aware of their rights and responsibilities. Adjust Work Expectations:  Consider how this new law might impact roles that traditionally involve after-hours contact and develop strategies to manage these changes effectively. Prepare for Award Updates:  Stay informed about changes to awards that apply to your industry and ensure compliance with the new requirements by the deadline. Manage Disputes Proactively:  Develop a clear process for handling disputes related to the right to disconnect to avoid escalation to the Fair Work Commission. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.  Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.  No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.  email us now at hr@esshr.com.au

As of August 26, 2024, new laws are coming into effect to protect the interests of certain workers in the gig economy, particularly those in the road transport industry. If your business engages independent contractors in these sectors, here’s what you need to know. Who Will Be Impacted? These new regulations primarily affect independent contractors classified as: ‘Employee-like workers’ : Contractors performing digital platform work in the gig economy. Road transport industry contractors : Individuals working within the road transport sector. These contractors are now considered ‘regulated workers,’ and businesses engaging them will be classified as ‘regulated businesses.’ Additionally, the new laws will impact any independent contractors involved in a ‘road transport contractual chain’ and other individuals within that chain. Eligibility Requirements To be classified as a regulated worker, contractors must meet certain criteria: They must be a party to a services contract, either individually or as part of a corporate entity, trust, or partnership. They should perform the majority of the work under this contract. They must not perform any work under the contract as an employee. These changes apply only where there is a ‘constitutional connection,’ such as when work is performed under a contract with a constitutional corporation. Introduction of ‘Employee-Like Workers’ Starting August 26, 2024, or earlier if determined by the government, the Fair Work Commission will gain new powers to cover certain independent contractors in the gig economy, identified as ‘employee-like workers.’ To meet this classification, a contractor must satisfy at least two of the following criteria: They have low bargaining power in contract negotiations. They are paid at or below the rate of an employee performing similar work. They have limited authority over how their work is performed. Any other characteristics prescribed by future regulations. Changes for Road Transport Industry Contractors For those in the road transport industry, new rules will also take effect on August 26, 2024. Contractors in this sector, termed ‘regulated road transport contractors,’ will be subject to specific regulations, particularly concerning the structure of contractual chains. A road transport contractual chain  involves multiple contracts or arrangements between businesses and workers performing the same task, like delivering freight. The new laws extend the Commission’s powers to everyone involved in these chains, including contractors and ‘employee-like workers.’ Setting Minimum Standards The Fair Work Commission will have the authority to set minimum standards for ‘employee-like workers’ and road transport contractors through: Minimum standards orders : Legally binding and enforceable with penalties for non-compliance. Minimum standards guidelines : Non-binding but still influential. These standards may cover aspects such as payment, deductions, and insurance, while additional guidelines might address matters like payment terms, fuel levies, and contract terminations. Collective Bargaining Rights The new laws also expand collective bargaining rights for ‘employee-like workers’ and regulated road transport contractors. These workers can now enter into collective agreements with digital platform operators or road transport businesses, setting terms and conditions much like enterprise agreements. Unfair Deactivation or Termination From August 26, 2024, the Fair Work Commission will handle disputes regarding the unfair deactivation of ‘employee-like workers’ from digital platforms or the termination of road transport contractors’ contracts. However, contractors earning above a certain income threshold won’t be eligible to apply. Rights of Workplace Delegates Regulated workers will gain the right to be represented by workplace delegates, who can advocate for their industrial interests. Regulated businesses will be prohibited from taking adverse actions against these delegates. Advisory Groups and Resources To support the implementation of these changes, new advisory groups will be established, including: Regulated Worker User Group : To connect with and inform regulated workers and businesses. Expert Panel and Road Transport Advisory Group : To advise on and manage matters related to the road transport industry. What Employers Should Do Next Review your contracts : Ensure they comply with the new definitions and standards. Prepare for collective bargaining : Understand how these changes might affect your negotiations with contractors. Stay informed : Keep up to date with the Fair Work Commission’s guidelines and minimum standards orders. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

On August 26, 2024, significant changes to the Fair Work Act will take effect, introducing a new definition of ‘casual employee.’ As an employer, it’s crucial to understand how these changes impact your obligations and practices. Here’s a breakdown of what you need to know and prepare for. Understanding the New Casual Employee Definition Under the new definition, a person will be classified as a casual employee if: There is no firm advance commitment to ongoing work, based on several specific factors. The employee receives a casual loading or a specific casual pay rate as outlined in an award, registered agreement, or employment contract. What This Means for Existing Casual Employees For employees hired as casuals before August 26, 2024, they will continue to be recognised as casuals under the new definition unless they transition to permanent employment. Ensure you review the existing casual employee definition and how it applies to your current workforce. Managing Casual Employees Hired After August 26, 2024 For casuals employed from August 26, 2024, the new definition will automatically apply. These employees will retain their casual status unless their employment is converted to permanent through: The casual conversion process or a Fair Work Commission order, or Acceptance of a new employment offer under different terms. Key Considerations for Employers: Firm Advance Commitment The concept of a firm advance commitment is central to determining casual status. As an employer, you need to assess this commitment by considering: The true nature of the employment relationship and its practical realities. Whether you offer work on a regular basis and if the employee can accept or decline work. The likelihood of future work availability and whether similar roles in your business are filled by full-time or part-time employees. The employee’s work pattern, even if it changes over time due to reasonable absences like illness or leave. Remember, no single factor is decisive, and not all factors need to be met to classify someone as a casual. For instance, a regular pattern of work doesn’t automatically imply a firm advance commitment to ongoing employment. Contracts and Employment Relationships When assessing casual status, it’s important to look at the employment contract and any mutual understanding or expectations between you and your employee, even if they aren’t explicitly stated in the contract. These understandings can be inferred from how the contract is performed and the behaviour of both parties after the contract is signed. Example Scenario: Casual Employment in Action Consider Tom, a hospitality worker at a summer pop-up bar. Each week, you offer him a roster, and he decides which shifts to accept. Despite having a regular pattern of work, Josh remains a casual employee because there’s no firm advance commitment to ongoing work, and he receives a casual pay rate. Fixed-Term Contracts for Casual Employees You can generally employ casuals on fixed-term contracts, but there are specific exceptions, particularly in the higher education sector. Ensure that your contracts comply with these rules to avoid potential disputes. Casual Conversion: Pathways to Permanent Employment From August 26, 2024, a new pathway will allow eligible casual employees to convert to full-time or part-time (permanent) status if they choose. This new process will replace the current casual conversion rules, so make sure you’re familiar with the updated requirements. Updating Awards and Casual Employment Terms The Fair Work Commission is reviewing changes to awards as a result of these new casual employment rules. Stay informed about these updates to ensure your business remains compliant. Obligations to Provide the Casual Employment Information Statement (CEIS) Starting August 26, 2024, you must provide the Casual Employment Information Statement (CEIS) to all new casual employees before or as soon as they start work. Additionally, the CEIS must be provided at regular intervals throughout the employment relationship. Avoiding Sham Arrangements To prevent the misuse of casual employment arrangements, new protections will be in place from August 26, 2024. It will be illegal to: Misrepresent casual employment terms to convince a full-time or part-time employee to switch to casual employment. Dismiss or threaten to dismiss an employee to rehire them as a casual for the same or similar work. Courts will have the power to impose substantial penalties for violations, with fines up to $93,900 for individuals and $469,500 for businesses. Action Steps for Employers Review and update your employment contracts and practices to align with the new casual employee definition. Ensure you understand the casual conversion process and are prepared to manage requests from eligible employees. Regularly update the Casual Employment Information Statement provided to casual employees to ensure compliance. Avoid any practices that could be considered sham arrangements to protect your business from legal penalties. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Starting from 1 July 2024, the superannuation guarantee (SG) rate will increase from 11% to 11.5%. This change means more money in your employees super account, helping for a more comfortable retirement. What you need to know Some payroll platforms will automatically apply this update. Ensure your payroll platform has been updated to apply 11.5% from as of 1 July to all employee earnings (ordinary time earnings) On 1 July 2024, the concessional contribution cap (s uperannuation contribution made before tax) is increasing from $27,500 to $30,000 per person, per financial year. On 1 July 2024, the non-concessional contribution cap ( the maximum amount of after-tax contributions you can contribute to your superannuation each year without facing extra tax) is increasing from $110,000 per person per financial year to $120,000. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Big changes are here! Starting 1 July 2024, new rules for right of entry permits and exemption certificates are shaking things up. Here’s what you need to know: Right of Entry Exemption Certificates These certificates allow permit holders to skip the required notice for a permitted visit when investigating a suspected breach of the Fair Work Act. The Fair Work Commission (the Commission) will issue these certificates under specific conditions: If there's a suspected underpayment of a union member. If giving advance notice would hinder an effective investigation. The Commission can also put conditions on these permits and certificates to ensure they’re used lawfully and protect permit holders from improper conduct. Workplace Delegates – New Rights from 15 December 2023 Workplace delegates, who are employees elected or appointed to represent members of their organisation, now have new rights and protections, including: Representing members' industrial interests , even in disputes. Reasonable communication with members about their industrial interests. Access to the workplace and facilities to represent these interests. Paid time during normal working hours for training (for delegates in non-small businesses). Upcoming Changes to Awards and Agreements From 1 July 2024, all awards, new enterprise agreements, and workplace determinations must include a delegates’ rights term. New Rights for Workplace Delegates of Regulated Workers – Effective 26 August 2024 Starting 26 August 2024, new rights extend to workplace delegates representing union members who are regulated workers. These include: Representing the industrial interests of regulated workers. Reasonable communication and access to workplace facilities. Protection from unreasonable actions by regulated businesses. Example: Lisa the Workplace Delegate Lisa works for a construction company and is elected as a union delegate. She wants to hold a meeting to discuss collective bargaining but finds is instructed by her manager that she cannot meet with the union on the worksite in work time. This action is a breach of Lisa's rights as a workplace delegate and is unlawful. Changes for Registered Organisations – Effective 27 February 2024 New laws restore the requirement for demerger applications by amalgamated registered organisations (like unions) to be made within 2 to 5 years after amalgamation. Plus, there are some technical tweaks to the demerger processes. The Commission continues to be the regulator for registered organisations. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

With the introduction of the Secure Jobs Better Pay Act, Closing Loopholes Act, and Closing Loopholes No. 2 Act, the way employers and employees negotiate and finalise agreements is evolving. Here’s a breakdown of what you need to know: 1. Delegates’ Rights Term Starting 1 July 2024, all agreements must include a delegates’ rights term, ensuring workplace delegates have the rights outlined in section 350C of the Fair Work Act 2009 (Cth). If the term in your agreement is less favourable than that in a modern award, the award term will apply. 2. Genuine Agreement Changes Effective from 6 June 2023, new principles ensure that employees genuinely agree to enterprise agreements. Employers must follow a Statement of Principles to confirm that employees have a sufficient interest and are representative of the agreement's coverage. 3. Better Off Overall Test (BOOT) For agreements made on or after 6 June 2023, the BOOT is getting a makeover! The Commission can amend or reconsider agreements to ensure they pass the BOOT, considering an assessment of whether employees are better off under the enterprise agreement than the modern award. 4. Multi-Enterprise Agreements From 6 June 2023, there are three types of multi-enterprise agreements: Supported bargaining agreements Single interest employer agreements Cooperative workplaces agreements Before requesting a vote on a multi-enterprise agreement, employers need written agreement from all relevant employee organisations or a voting request order from the Commission. 5. Transitioning Agreements Starting 27 February 2024, employers can transition from a supported bargaining agreement or a single interest employer agreement to a single enterprise agreement before its nominal expiry date. Written agreement from all relevant employee organisations or a voting request order is required before requesting a vote. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Changes Effective from 26 August 2024 We’re shaking things up in the world of casual employment with some important updates to the Fair Work Act. Here's what you need to know: What Makes a Casual Employee? Under the new definition, an employee is considered casual if: There’s no firm advance commitment to ongoing and indefinite work, taking into account factors like the real substance and true nature of the employment relationship. They’re entitled to receive a casual loading or specific casual pay rate. Casual employees will stay casual until their status changes through: A conversion process or Fair Work Commission order, or Accepting an alternative employment offer and starting work on that basis. Existing casual employees as of 26 August 2024 will retain their casual status unless they transition to permanent employment. Firm Advance Commitment Whether there's a firm advance commitment to continuing and indefinite work depends on: The real substance, practical reality, and true nature of the employment relationship. Additional factors such as whether: The employer can offer or not offer work to the employee. The employee can accept or reject work. It's reasonably likely there will be future work available. Full-time or part-time employees are performing similar work. The employee has a regular pattern of work. Fixed-Term Contracts Casual employees can generally be hired on fixed-term contracts, except for: Academic or higher education teaching staff covered by specific awards and not state public sector employees. Casual to Permanent Employment (Casual Conversion) Starting 26 August 2024, eligible casual employees can notify their employer of their intention to change to permanent employment if: They’ve been employed for at least 6 months (or 12 months for small business employers). They believe they no longer meet the new casual definition. Employees can’t notify their intention to change if: They’re in an ongoing dispute about casual conversion. Their employer refused a previous notification within the last 6 months. Employer’s Response to Casual Conversion Employers must consult with employees before responding in writing within 21 days, either accepting or refusing the change. If accepted, the response must detail the new employment status, hours of work, and when the change takes effect. Disputes About Casual Conversion Unresolved disputes can be taken to the Fair Work Commission, which will first try to resolve informally through mediation or conciliation, and if necessary, through formal arbitration resulting in a legally binding decision. Casual Employment Information Statement (CEIS) Starting 26 August 2024, employers must provide the CEIS to new casual employees before or soon after they start, and to all casual employees as follows: Non-small business employees: as soon as possible after 6 months, 12 months, and every subsequent 12 months. Small business employees: as soon as possible after 12 months of employment. Stay informed and make sure you’re up to date with these changes to ensure compliance and smooth transitions for your casual employees!

The Fair Work Commission, Australia's national workplace relations tribunal, has updated the superannuation guidelines across 147 awards, effective from April 9, 2024. These revisions ensure the awards are consistent with the latest superannuation regulations, including the entitlement to superannuation contributions outlined in the National Employment Standards (NES), which took effect on January 1, 2024. Superannuation Rights under the NES The NES now includes a provision for superannuation contributions, granting most employees covered by the NES the ability to pursue legal action under the Fair Work Act for any discrepancies in superannuation payments. Although employers are already required to make superannuation contributions for eligible employees under superannuation guarantee laws, the Australian Taxation Office (ATO) continues to oversee compliance with these obligations. Updated Superannuation Rules in Awards The updates primarily integrate existing superannuation legislation rules, focusing on the rights and obligations of both employers and employees. Key updates include: Employees generally have the option to select their own superannuation fund. If a new employee does not select a fund, the employer must consult the ATO to check if the employee belongs to a stapled superannuation fund. If so, contributions should be made to this stapled fund. If an employee does not choose a fund and does not belong to a stapled fund, the employer fulfills the fund choice requirement by contributing to a superannuation fund listed in the award, assuming the fund accepts contributions for the employee. Recommended Actions It is advisable to have a default super fund, specifically one recognised in the applicable award. Employers should also implement a robust payroll system that supports electronic onboarding, enabling new employees to select either their chosen super fund or the employer's default fund. This system should automatically calculate and facilitate super payments through a clearing house. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Written by Harshini Elliott, Senior HR Partner Changes to the Closing Loopholes Bill Part 1 now addresses any anomalies in the operation of the exemption for small business from providing employees with redundancy pay under the National Employment Standards (NES). The amendments will mean that the existing exemption will not apply to employers that are bankrupt or in liquidation, and which have downsized due to insolvency to become a small business employer. This will ensure that employees terminated due to the insolvency of their employer retain their entitlement to redundancy pay if their employer was not a small business prior to insolvency.  What has changed? The changes will address an anomaly which causes some employees of employers – that are bankrupt or in liquidation – to miss out on a NES entitlement to redundancy pay which would have otherwise been payable at the end of their employment. This occurs when an employer downsizes due to insolvency to fewer than 15 staff, becoming a small business employer exempt from providing redundancy pay to employees under the NES. There will be no change to how the small business redundancy exemption currently applies to viable small businesses, including those that have restructured from a larger employer and are continuing to trade. It will only change how the small business redundancy exemption applies to employers that are bankrupt or in liquidation. What do these changes mean? This change means that employees will no longer be disadvantaged if they are made redundant later than other employees during the insolvency process, including if they are directed by an insolvency practitioner to assist with the wind up of their insolvent employer. When will these changes come into effect? These changes commenced on 15 December 2023. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Written by Harshini Elliott, Senior HR Partner Changes commenced on 15 December 2023   Changes have been made to the Closing Loopholes Bill Part 1 to strengthen Commonwealth work health and safety offences and penalties by: Introducing an industrial manslaughter offence; Increasing penalties; and Providing new criminal responsibility provisions for bodies corporate and the Commonwealth.
The amendments also establish a Family and Injured Workers Advisory Committee. What has changed? The changes amend the WHS Act to strengthen the work health and safety offences and penalties regime by including: An industrial manslaughter offence for the Commonwealth work health and safety jurisdiction with penalties of $18 million for a body corporate and 25 years imprisonment for an individual. Significant increases to the Category 1 offence penalties from $3 million to $15 million for a body corporate, from $600,000 to $3 million for a person conducting a business or undertaking or an officer, and from $300,000 to $1.5 million for any other person. A 39.03% increase to all other penalties in the WHS Act . For those penalties which have increased, an indexing mechanism to annually increase penalties in line with the national consumer price index. New criminal responsibility provisions for bodies corporate and the Commonwealth.
The changes also amend the WHS Act to establish a Family and Injured Workers Advisory Committee. The Committee will provide advice to the Minister for Employment and Workplace Relations and Commonwealth work health and safety regulators on the support needs of those affected by a serious workplace incident and help inform the development of relevant policies and strategies. What will these changes mean? The industrial manslaughter offence and higher penalties for breaching work health and safety duties will promote compliance and help make workplaces safer. The industrial manslaughter offence will address community concern and apply higher penalties to the most egregious breaches of work health and safety duties, those which cause death. The indexing mechanism will ensure work health and safety penalties retain their relative value and remain a serious deterrent into the future. New criminal responsibility provisions will ensure bodies cooperate and the Commonwealth are held accountable for breaches of work health and safety duties. The Family and Injured Workers Advisory Committee will ensure that bereaved families and seriously injured workers and their families have the opportunity to give feedback to government, and advocate for change or reform to meet the needs of those affected by a workplace death or serious injury or illness. When will these changes come into effect? The industrial manslaughter offence will commence on 1 July 2024. The Minister for Employment and Workplace Relations is required to establish the Family and Injured Workers Advisory Committee within 12 months of the commencement of the relevant provisions. Most other amendments commenced on 15 December 2023. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR . We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

The Australian government has implemented significant amendments to its labor laws with the introduction of the "Closing Loopholes" legislative package, which comprises the Closing Loopholes Act 2023 and the subsequent Closing Loopholes No. 2 Act 2024. This legislation, passed by the Commonwealth Parliament on December 7, 2023, marks a pivotal step in combating wage exploitation. A cornerstone of these amendments is the introduction of a new criminal offense known as Wage Theft, which targets employers deliberately underpaying their employees. This move to criminalise wage theft reflects a growing recognition of the severity of underpaying workers and the necessity for stricter enforcement measures. The legislation specifically targets intentional underpayments relating to employee entitlements outlined in the Act or under a fair work instrument, such as modern awards or enterprise agreements. Notably, the offense extends to intentional underpayments of superannuation contributions, reinforcing the government's commitment to protecting employee benefits. Commencing January 1, 2025, stringent penalties will be introduced for employers, including individual directors, who intentionally withhold wages or superannuation contributions. Penalties include imprisonment for up to ten years and fines reaching $7.8 million. A key aspect of these new provisions is the consideration of the employer's intent, highlighting the importance for employers to proactively ensure compliance to avoid severe repercussions. Employers previously or currently identified for underpaying employees must be particularly vigilant. The courts will consider whether employers knowingly continued underpaying employees, potentially interpreting this as a willful violation of the new laws. This underscores the urgent need for employers to conduct thorough compliance audits of their payroll and management practices to rectify any underpayments and avoid future legal complications. Moreover, the legislation introduces measures to encourage employers to self-report underpayment violations. Incentives for self-disclosure include protection from criminal prosecution for wage theft, provided certain conditions are met. This includes adherence to a forthcoming Voluntary Small Business Wage Compliance Code, developed in collaboration with government and industry groups. Compliance with this code will serve as a safeguard against criminal prosecution for self-disclosing employers. Additionally, the Fair Work Ombudsman (FWO) may enter into cooperation agreements with employers who voluntarily report wage underpayments. While these agreements can exempt employers from criminal prosecution, the FWO retains the authority to take alternative measures, such as issuing compliance notices or pursuing civil action. It's crucial to understand that the new wage theft offense will not penalise honest mistakes or unintentional miscalculations by employers. Instead, it targets deliberate acts of underpayment, holding those who intentionally exploit workers criminally accountable. The inclusion of cooperation agreements and compliance codes serves to support employers who have made unintentional errors, offering them pathways to rectify these mistakes while maintaining their obligation to fair worker compensation. The changes usher in a new era of accountability in the Australian workplace, emphasizing the importance of fair compensation and the legal responsibilities of employers. These amendments are scheduled to take effect from January 1, 2025, but the actual commencement date hinges on the declaration of the Voluntary Small Business Wage Compliance Code by the Minister for Employment and Workplace Relations. If the Code is not declared, the offense will not be enacted. This phased approach allows employers time to adjust and align with the new legal standards, ensuring that worker rights are protected and upheld in the Australian labor market. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Significant updates to Australia’s Paid Parental Leave scheme were officially approved by Parliament on March 18, 2024. The enactment of the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023 will augment the duration of leave available to parents. Commencing from July 1, 2024, the paid parental leave period will progressively extend from the current 20 weeks to 26 weeks by July 1, 2026. This extension will occur in stages, with an additional two weeks being added annually until 2026, culminating in a total increase of six weeks to the existing Paid Parental Leave (PPL) scheme, providing parents with up to six months of leave by 2026. Below is a brief breakdown:   For children born before July 1, 2024: 100 days of paid leave (around 20 weeks). For children born from July 1, 2024, to June 30, 2025: 110 days of paid leave (approximately 22 weeks). For children born from July 1, 2025, to June 30, 2026: 120 days of paid leave (about 24 weeks). For children born on or after July 1, 2026: 130 days of paid leave (equivalent to 26 weeks). These modifications will necessitate minimal adjustments for employers, mainly entailing the processing of additional payments for eligible employees. It is advisable for employers to reassess their parental leave policies in light of these changes. Note: Essential HR will manage these policy updates for our HR Partner clients.   For further details on the enhanced paid parental leave scheme and the implications for employers, please refer to the Services Australia website here . Additionally, if you require assistance in updating your organisation’s parental leave policy to comply with these new legislative changes, please contact Essential HR at hr@esshr.com.au . About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

In an era where the boundaries between work and personal life are increasingly blurred, the introduction of the 'Right to Disconnect' legislation marks a significant shift in workplace dynamics. This new rule, aimed at empowering employees, asserts their right to ignore work-related communications outside standard working hours, unless such contact is deemed reasonable. When Will This Change Take Effect? The legislation will come into force six months following Royal Assent. However, for small businesses with fewer than 15 employees, a grace period of 18 months is provided to adapt to the new regulations. What Changes Are Being Made? Under the 'Right to Disconnect', employees can refuse to engage with work-related communications—such as emails, phone calls, or messages—outside their normal working hours. This provision also extends to third-party contacts related to work. The fundamental principle here is the reasonableness of the refusal, which balances employee wellbeing with business needs. This right is designed not only to allow employees to unplug after hours but also to set clear boundaries regarding work-life balance. However, it's crucial to understand that this right is not absolute. Employers can still require after-hours contact if it's reasonable, considering factors like the urgency of the issue, the employee's role, and personal circumstances. Implications for Businesses and Employees Businesses may need to reassess their operational strategies and communication policies. The legislation introduces additional layers of consideration, potentially complicating out-of-hours communication. Employers must now navigate the fine line between reasonable and unreasonable contact, with disputes possibly escalating to the Fair Work Commission. For employees, this change reinforces the importance of work-life balance and provides a legal framework to support their right to disconnect. However, they must also understand the conditions under which they are expected to remain contactable. What Can Businesses Do? To comply with the new regulations and minimise disputes, businesses should: Clearly define out-of-hours contact expectations in job offers, contracts, and policies. Tailor benefits packages to reflect the expectation of some out-of-hours engagement. Engage in open dialogue with employees to establish mutual understanding and expectations regarding availability.
Conclusion The 'Right to Disconnect' is a progressive step towards recognising the importance of mental health and work-life balance in the modern workplace. While it presents challenges for both employers and employees, it also offers an opportunity to foster a more respectful and productive work environment. By embracing clear communication and setting reasonable expectations, businesses can adapt to this new legislation while supporting their employees' right to unplug and recharge. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.  Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.  No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.  email us now at hr@esshr.com.au

Starting December 30, 2023, there are new regulations governing employee authorised deductions from pay. These deductions can be either one-off or recurring and can be for specific amounts or varying amounts over time. Referred to as employee authorised deductions, they require written permission from the employee. Examples of such deductions include payments to a health fund or union fees. Employers are permitted to make these deductions only if they primarily benefit the employee . Some examples include deductions for goods or services provided by the employer, such as spa treatments in a spa business operated by the employer, or when an employee utilises a company credit card for personal purchases. Record-keeping is essential for these deductions, and they must be documented in the employee's records. Pay slips must detail the amount of each deduction and the name or name and number of the fund or account into which the deduction was deposited. Additionally, awards and registered agreements may also allow for deductions from pay under certain circumstances. However, deductions directly from an employee's pay are subject to strict conditions. Employers must obtain written consent from employees, ensuring that the deduction primarily benefits the employee, or else they may face penalties or have to back-pay the employee. Examples of permitted deductions include salary sacrifice arrangements and voluntary contributions to an employee's super fund. In cases of overpayments due to employer error, deductions from an employee's pay are permissible only under limited circumstances. Employers must discuss and agree upon a repayment plan with the employee, documenting the reason for the overpayment, the amount, and the terms of repayment. Moreover, certain deductions may be allowed when an employee fails to provide adequate notice of termination as per their award. However, such deductions are limited and cannot be taken from other entitlements such as accumulated leave. It's important to note that even if deductions are outlined in awards, agreements, or employment contracts, they may not be permissible if they primarily benefit the employer or if the employee is under 18 years of age. Compliance with legal requirements and ensuring that deductions genuinely benefit employees and are mutual agreed in writing are crucial aspects of implementing authorised deductions from pay. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR . We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au Top of Form

Written by Harshini Elliott, Senior HR Partner At the heart of thriving businesses lies the cornerstone of effective performance reviews—a dynamic tool designed not only to advance employee development but also to bolster communication, and seamlessly integrate individual ambitions with the broader vision of the organisation. Performance evaluations are more than just a checkpoint; they are a gateway to clarity and recognition, offering employees a mirror to their contributions and their value within the company's ecosystem. This transparency is key to fostering an environment where excellence is acknowledged and rewarded, paving the way for both personal and organisational triumphs. However, the art of feedback extends beyond the annual review. In a truly vibrant workplace culture, feedback and recognition are continuous, embedded in the day-to-day rhythm of organisational life. This approach demystifies performance reviews, transforming them from a source of stress into a constructive dialogue—a moment of empowerment and growth rather than a dreaded confrontation. Such a culture celebrates progress, nurtures development, and views performance evaluations as an opportunity for positive reinforcement within a supportive framework. Effective performance reviews are the scaffolding for a culture of accountability, development, and success. When approached with intention and consistency, they are a powerful lever for enhancing employee engagement, performance, and aligning with the strategic objectives of the organisation. To navigate these conversations with finesse, here are some actionable strategies: Prepare with Purpose:   Equip yourself with comprehensive insights—from performance data to peer feedback and self-assessments—to paint a full picture of the employee's journey. Clarify and Connect:   Set the stage by clearly outlining the objectives and expectations of the review, ensuring a focused and productive dialogue that resonates with both individual and organisational goals. Celebrate and Critique with Care:   Utilise specific examples to spotlight achievements and provide constructive feedback, fostering an atmosphere of appreciation and continuous improvement. Foster Open Dialogue:  Cultivate an environment where open, two-way communication thrives, allowing for a genuine exchange of ideas, aspirations, and feedback. Set the Path Forward:   Collaborate on setting SMART goals that challenge and inspire, underpinned by clear expectations and milestones. Empower through Opportunities:   Identify avenues for professional growth, offering resources and assignments that stretch capabilities and enrich career trajectories. Document and Develop:  Keep a detailed record of discussions and action plans, maintaining a clear trajectory of development and accomplishments. Engage and Evolve:  Maintain momentum with regular check-ins, adapting strategies and support to meet evolving goals and challenges. Essential HR stands as your partner in sculpting a landscape where performance reviews are a catalyst for growth and success. Our expertise lies in guiding managers through the intricacies of performance evaluations, offering tools and training to ensure these conversations are as effective as they are empowering. From crafting tailored review templates to navigating feedback and development discussions, we are here to elevate your performance review process to new heights of effectiveness and engagement. Let us help you transform performance reviews from a routine procedure into a strategic asset for your organisation. email hr@esshr.com.au

Written by: Harshini Elliott, Senior HR Partner Welcome to a new era of workforce challenges! Embarking on a new employment journey? Get ready to experience a transformative probationary period that's more than just a trial phase. It's an opportunity to unleash the full potential of your new team member and ensure you're making the right choices for your business's future. Why Probation Periods Matter Evaluating Compatibility and Alignment:  Probation periods are a powerful tool for evaluating if new hires align perfectly with your company's ethos and job demands. It's a two-way street where both you and your new team member explore a perfect professional match. Tuning for Performance Excellence:  The initial months are critical for optimising performance, laying the foundation for future success. Early identification of performance gaps allows for their conversion into opportunities for development and advancement. Fostering Growth Through Structured Feedback Milestone Check-ins: Scheduling regular feedback sessions at the 1, 3, and 5-month marks is crucial. These meetings are not mere formalities but pivotal moments for feedback, goal adjustment, and ensuring the new employee is progressing as expected. Critical Decision Period: In the initial 6 months for full-time or part-time staff (or 12 months for small businesses with fewer than 15 employees), employees are ineligible to lodge an unfair dismissal claim should you decide to terminate their employment. Nonetheless, it's advised to conduct routine check-ins, documenting discussions around your concerns to mitigate the risk of other claims, such as a General Protection Claim. The Essential HR Blueprint for an effective Probationary Period Setting Clear Expectations:  From day one, lay out a clear roadmap of expectations, duties, and performance benchmarks. Having an up-to-date position description that includes key duties and responsibilities and attributes will assist you in this process. Further, setting clear Objectives with Key Results (OKR's) during their probation period will contribute to their understanding of what needs to be achieved and expected outcomes. Regular and Consistent Check-Ins:  sticking to check-in schedules ensures continuous dialogue, fostering an environment of growth and open communication. Tailored Training and Support:  We believe in empowering your new hire with the right tools, on the job and/or formal training, and mentorship, enhancing their journey towards becoming a valuable team player. Performance Evaluations:  Conducting a more formal evaluation at the end of the probation period is about celebrating achievements and setting new goals. Continuous Feedback Loop:  Establish an ongoing feedback mechanism, highlighting strengths and areas for improvement in real-time. Accurate Record Keeping:     Documenting all performance assessments and meetings ensures transparency and serves as a reference for future evaluations. Adaptive Flexibility:  Life is unpredictable. That's why we advocate for a flexible approach, adapting to the unique needs of each situation. Transparent Decision-Making:  Create a transparent, fair decision-making process for determining the future of your new hire post-probation. If they do not pass their probation and you terminate their employment, it should come as no surprise to the new starter. If it is not working out, the new employee should also be making a decision that this role is not for them. Open Communication: Communicate openly and transparently with the employee throughout the probationary period. Let them know where they stand in terms of their performance and what steps they can take to improve if needed. Upholding Fairness and Consistency:  We champion a uniform, consistent and unbiased approach to probation across all levels, ensuring fairness and equity. Elevate Your Probation Experience with Essential HR  At Essential HR, we position ourselves as your allies in designing a probation period that resonates with excellence and effectiveness. Our experienced HR professionals are here to guide you, offering bespoke templates, training, and development strategies for impactful probation meetings. Embark on this journey with us and transform your probation period into a powerful catalyst for long-term success and team harmony. Let's unlock the full potential of your team, together! email: hr@esshr.com.au or call 0419 568 899 to speak to Justine Pepper, Managing Director

At Essential HR, we deeply understand the appeal of maintaining an internal HR team. However, in challenging the status quo, we propose a shift in perspective: outsourcing your HR function. While the notion may initially seem unconventional, we're here to demonstrate how this approach can not only fit seamlessly into your business model but also enhance it significantly. The Evolution of Outsourcing Outsourcing, which began gaining traction in the 1980s and exploded in the 1990s, has evolved over the past three decades. This strategy is particularly familiar to small businesses that can't afford full-time, expert resources. Even larger organisations recognise the financial benefits, often outsourcing functions like payroll, recruitment & finance to cut costs. Our philosophy is straightforward: if recruiting an in-house expert is impractical or unattainable, find that external expert who can offer their services as needed. This approach not only ensures expertise but also mitigates risks associated with non-compliance and potential litigation, often a pitfall when non-specialists handle sensitive HR tasks. The Essential HR Outsourcing Model Solid Service Delivery Model : We believe in a robust model that guarantees effective HR services integration. Real-Time Accessible HR Platform : Essential HR implement a HR platform that facilitates immediate information exchange between clients and providers, reduces time spent on HR admin, ensures HR compliance and promotes employee engagement. Proactive and Planned Service : Our approach includes a proactive HR strategy with a clear plan of deliverables. Empowering, Not Policing : HR, whether internal or external, should empower, coach and educate managers to lead, not police their teams. Leadership Integration : Our HR professionals are integral to the leadership team, driving the HR agenda forward. Diverse Expertise : We ensure a comprehensive coverage of all HR aspects by having a team with varied levels of expertise, including Legal and Safety expertise. Top 9 Benefits of Outsourcing HR with Essential HR: Control Capital Costs : Outsourcing transforms fixed costs into variable costs, freeing capital for investment elsewhere in your business, and making your company more appealing to investors. Increased Efficiency : Outsourcing replaces manual, inefficient processes with automated, technology-driven solutions, enhancing productivity and accuracy. Reduced Labour Costs : Save on the expenses of hiring and training, while focusing your human resources where they're needed most. Quick Project Initiation : Outsourcing firms, focused solely on HR services, can start and execute new projects efficiently. Core Business Focus : With limited resources, outsourcing allows businesses to concentrate on customer-oriented activities and clearer managerial priorities. Leveling the Playing Field : Small and medium-sized enterprises can enjoy the same scale of services, efficiency, and expertise that larger companies have access to. Reduced Risk : Navigating the complex Australian Industrial Relations System is safer with an outsourcing partner who is up to date with legislation and risk management and has the backing of a legal and safety team of experts. Year-Round Resources : Outsourcing ensures uninterrupted service, even during employee leaves, by providing a team of experts readily available for any client. Software Cost Reduction : Clients benefit from cloud-based platforms without the need for in-house installation, customisation, and maintenance. Conclusion Essential HR offers these benefits and more. Our approach to HR outsourcing is designed to integrate seamlessly into your business, providing not just a service, but a partnership that fosters growth, efficiency, and compliance. To explore how our tailored HR solutions can benefit your organisation, we invite you to reach out and start a conversation with us today. Email: hr@esshr.com.au

On 7 December 2023, Parliament passed the  Fair Work Legislation Amendment (Closing Loopholes) Bill  2023 (Bill), splitting the government’s omnibus industrial relations bill into two. The Bill received Royal Assent on 14 December 2023. Outlined below are 3 key changes. 1. Criminalising intentional wage underpayments From 1 January 2025, intentional underpayments of wages by employers will be a criminal offence . Where an Employer intentionally underpays or owes money to an employee, if proven, may serve jail time or be heavily fined or both for their crime. 2 common examples of intentional underpayments under the Fair Work Act include: Not paying the minimum rates of pay as per the National Minimum Wage, a Modern Award or other industrial instrument such as an enterprise agreement. Failure to pay employee entitlements stipulate in a Modern Award, enterprise agreement or the NES. Additionally, failure to make the required superannuation contributions will also come under this new law. Companies prosecuted face penalties three-times the amount of the underpayment, if a court can determine it, or $7.825 million, whichever is greater. If the court can’t determine the underpayment, the maximum penalty is $7.825 million. Individuals can be imprisoned for up to 10 years; be fined either three-times the amount of the underpayment, if the court can determine it, or up to $1.565 million, whichever is greater; or be both fined and imprisoned. Misinterpretation of an industrial instrument or where a genuine mistake has been made, these laws will not apply. A Voluntary Small Business Wage Compliance Code will be established before the changes take effect, and compliance with this Code means a small business won’t be prosecuted if they underpay their employees. The Fair Work Ombudsman will, once the offence takes effect in 2025, investigate suspected criminal underpayment offences . 2. Equal pay for labour hire workers From 15 December 2023, employees, unions and host employers can apply to the Fair Work Commission for a regulated labour hire arrangement order. The Bill will give power to the Fair Work Commission (FWC) to make orders requiring employers with enterprise agreements to pay labour hire workers at least the same as the direct workforce if they perform the same duties or if the employer’s enterprise agreement would apply to the labour hire worker if they were employed directly. The changes only apply to the employee’s entitlement to pay; they do not apply to non-monetary entitlements owed under a host employers industrial instrument. The changes also do not apply: to small business owners; for certain short-term or other fixed periods; where an employee is paid more under their employment contract, or an industrial instrument that applies to them; or to training arrangements administered under State or Territory vocational training schemes.     3. New discrimination protections From 15 December 2023, employers cannot discriminate by taking adverse action against employees because they have been subjected to family and domestic violence . Awards and enterprise agreements must also not include terms that discriminate against an employee because they're experiencing (or have experienced) family and domestic violence. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR . We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Effective December 6, 2023, revised regulations are now in place for the utilisation of fixed term contracts for employees. A fixed term contract terminates at the conclusion of a predetermined period, such as a specific date, a set duration, or the conclusion of a particular season. A summary of the new rules are: an employer cannot employ someone on a fixed term contract that is longer than 2 years; that has more than one extension of contract; or where the employee will be employed under consecutive contracts. Exceptions to the new rules are: You employee casual employees You employee someone who has specialised skills for a specific task Training arrangements are in place such as an employee completing an apprenticeship or traineeship. Essential Worker during a peak demand period Working in an emergency situation or replacing someone who is temporarily absent. Employees over the high-income threshold The position is subject to Government Funding Is a Governance position The relevant Award has provisions that vary the new rules. It is important to note, should you employee someone on a fixed term contract you must provide them with a copy of the Fixed Term Contract Information Statement when they start work (in addition to a copy of the Fair Work Information Statement). If you employee fixed term staff, we highly recommend you click here and read through the Fixed Term Contract Information Statement to give you further information in regards to the new rules. For advice please contact Essential HR via https://www.esshr.com.au/contact-essential-hr About Essential HR Essential HR are a partner you can rely on. Our HR solutions combine technology and expertise to make your business better. We’ll help you play by the rules, sort out those tricky problems and create efficiencies that maximise your success.

Written by Michaella Prow, Recruitment Partner | Talent Acquisition | Workforce Planning | Outplacement and Career Transition | Top 10% Recommended Recruiter on Sourcr. As your organisation gears up for the approaching year, it is crucial to grasp the anticipated trends for 2024 and tailor your strategies to navigate these forthcoming changes, challenges, and opportunities. In aid of your organisational preparedness, we've condensed key projections for the upcoming year, outlining how you can proactively plan for them. 1. High Demand for Talent The persistent challenge of talent acquisition is expected to continue in 2024, with an escalating demand for individuals possessing the right skills. Tackling talent shortages is imperative for organisational vitality in the coming year. While specific sectors like healthcare, mental health, construction, and education may experience more acute shortages, the challenge is anticipated across all industries. Strategic workforce planning becomes paramount to address talent shortages not only in the short term but by charting workforce needs for the next 2–3 years, especially for organisations in growth stages. A comprehensive strategy should include initiatives for employee retention, internal succession planning, team restructuring, flexible work arrangements, diverse workforce integration, and investments in learning and development. Building a robust employer brand, including a compelling Employer Value Proposition, will be pivotal for attracting and retaining talent. 2. Industry Growth Certain industries are poised for growth in the coming year, leading to increased opportunities and a surge in demand for specific skills. Notably, healthcare, mental health, technology, construction, property, and engineering sectors are anticipated to expand. The rise of AI and technological advancements will influence job roles, emphasizing the need for employees with robust tech skills. Organisations are encouraged to upskill and reskill their workforce in AI and technology to gain a competitive edge. 3. Flexible Working The permanence of flexible and hybrid working models has been affirmed, rendering the traditional 5-day office week obsolete. Job seekers and employees prioritise flexibility and work-life balance, making it a crucial factor for talent attraction and retention. Organisations that can offer flexibility will stand out and gain a competitive advantage. Achieving this requires educating leadership, transforming company culture, and setting examples through role modeling. 4. Salaries The heightened demand for skills has led to wage inflation, placing strain on organisational sustainability. Previous reports show salary increases in specific roles and industries, a trend expected to continue in 2024, particularly in high-demand sectors. However, organisations must review operational costs to ensure long-term sustainability. Successfully navigating these changes requires a shift in perspective, recognising that recruitment and workforce development extend beyond job roles to encompass individual well-being, team dynamics, updated business processes/systems, and a positive workplace culture. For organizations seeking support in any of these areas, our HR/Recruitment Partners at Essential HR are available to assist. How can Essential HR help? As specialists in recruitment & human resource management Essential HR can assist in formulating strategies and crafting an Employer Value Proposition (EVP) that articulates your purpose, team culture, and fosters strong workplace relationships. We look at aligning compensation, benefits, professional growth opportunities, enhancing employee experience through HR technology, creating positive working environments, and providing intiatives around work-life balance. In doing so, we help create effective EVP''s to not only attract the right talent but also improve employee engagement, reduce turnover, and enhance the organisation's overall performance. To learn more visit our website at: www.esshr.com.au  or get in contact with us.

In today's dynamic and ever-evolving job market, career transitions have become a common aspect of the modern workforce. Whether due to downsizing, restructuring, or other changes within an organisation, employees often find themselves in a state of uncertainty and flux. Outplacement, a service aimed at assisting individuals during these transitional periods, has gained significance as a tool to help both employees and organisations effectively manage the process of career change. This article explores the concept of outplacement, its benefits, and how it aids individuals in navigating the tumultuous seas of career transitions. Understanding Outplacement Outplacement is a holistic approach to supporting employees who are facing job loss or career transitions, usually as a result of downsizing, layoffs, or company restructuring. It involves the provision of various resources, guidance, and assistance to help individuals transition into new employment opportunities successfully. The core objectives of outplacement services are to minimise the adverse effects of job loss, facilitate reemployment, and enhance the overall well-being of employees during this challenging phase. Key Components of Outplacement Services Career Counselling: Outplacement services typically provide access to professional career counsellors who help individuals assess their skills, strengths, and interests. This guidance assists in identifying new career goals and charting a path towards achieving them. Developing a Personal Brand: Outplacement programs offer support with updating and optimising resumes, refine job search strategies, and creating effective LinkedIn profile to stand out in a competitive job market. Job Search Assistance: Outplacement firms often have extensive networks and resources for job hunting. They help job seekers identify potential employers, apply for positions, and connect with opportunities that align with their career aspirations. Fine Tuning Interview skills: Embarking on a journey to master interview skills is a crucial step towards achieving career goals and securing a new role. It allows individuals to be ready to present themselves with confidence, poise, and authenticity. Emotional Support: Losing a job can be emotionally challenging. Outplacement services often include counselling and emotional support to help individuals cope with stress, anxiety, and the emotional toll of job loss. Benefits of Outplacement Services Employee Morale: Providing outplacement services to employees affected by downsizing or restructuring demonstrates a commitment to their well-being, which can boost morale even in difficult times. Faster Reemployment : Individuals who use outplacement services tend to find new employment more quickly than those who don't, reducing the period of unemployment and financial strain. Cost Savings: Offering outplacement services can mitigate potential legal or reputation risks for an organisation, ultimately saving money in the long run. Enhanced Productivity: For employees who are not directly impacted by job loss, knowing that outplacement services are available can help maintain focus and productivity during times of change. Positive Company Image: A commitment to outplacement services can improve an organisation's reputation in the job market, making it more attractive to prospective employees. Not all outplacement services are the same. They should be tailored to the specific needs of the individual and the organisation. Customisation is key in addressing unique career challenges, from mid-career professionals seeking to pivot into new industries to entry-level employees entering the job market for the first time. The investment in outplacement services not only helps displaced workers navigate the uncertainty of job loss but also reflects positively on the organisation's commitment to the well-being of its employees. By offering a helping hand during challenging times, outplacement services empower individuals to find new opportunities and embark on the next chapter of their careers with confidence. In essence, outplacement is not just a service; it's a bridge to a brighter, more secure professional future. At Essential HR we understand that no two career transitions are alike. Our Outplacement Services are meticulously designed to cater to an individual's unique needs, skills, and aspirations. Whether you're a seasoned executive or a recent graduate, our approach adapts to your circumstances, ensuring you receive the personalised support required to excel in job searching. See learn more regarding our Outplacement Services click here

The holiday season is a time for joy, celebration, and spending quality time with loved ones. Many businesses choose to close down over Christmas to allow their employees to enjoy this special time. However, it's essential for employers to be aware of their obligations and responsibilities when implementing a Christmas shutdown. In this article, we will explore the various aspects of employer obligations during the holiday season closure, ensuring that both employers and employees have a smooth and stress-free holiday break. Directing Employees to take Leave Directing employees to take leave during a shutdown period such as Christmas and New Year is not always straight forward. Some Modern Awards and Agreements do not allow you to give direction. For example, the Social, Community, Home Care and Disability Services Industry Award states employees cannot be directed to take annual leave during a shutdown, only by mutual agreement. Whereas the Clerks Private Sector Award states: Employees can be required to take a period of paid annual leave during a shutdown. If an employee doesn’t have enough paid annual leave to cover all of the shutdown, the employee and employer can agree to other options for the days not covered such as using: other paid time such as time off in lieu annual leave in advance leave without pay. Giving Adequate Notice One of the most crucial aspects of closing over Christmas is providing employees with sufficient notice. Depending on the relevant industry or occupational Modern Award or Agreement, this notice period can vary. Generally, it's recommended to inform employees in writing at least four weeks in advance to allow them time to plan accordingly. Most Awards state 28 days’ notice in writing, however we strongly recommend referring to the relevant clause in the Award to ensure you provide sufficient notice. For example, the Building and Construction General On-site Award states: All affected employees must be given at least 2 months’ written notice of the shutdown period. Holiday Pay and Leave Entitlements During the Christmas shutdown, employees may have questions about their holiday pay and leave entitlements. Employers must adhere to employment laws regarding paid leave during this period. This includes explaining whether employees will be paid for public holidays, how accrued leave balances will be handled, and any special arrangements for temporary or part-time workers. Clearly communicating these details helps prevent confusion and disputes. A few things to consider are: Where a public holiday falls on a full-time or part-time employee’s standard workday, the employee will be paid for the public holiday. Paid leave taken over the shutdown period, including public holidays, the employee will still accrue leave, unless they’re taking leave without pay. Casual employees are not entitled to paid leave and will need sufficient notice to ensure they can financially plan for the shutdown period. Temporary Closure Policies Developing clear policies and procedures for the Christmas shutdown can help streamline the process and ensure consistency. These policies should address matters such as the shutdown duration, emergency contact information, security measures, and expectations regarding remote work, if applicable. Make sure all employees are aware of these policies and have access to them well in advance of the closure. Communication and Engagement Effective communication is essential to address employee concerns and maintain morale during the holiday shutdown. Hold a staff meeting or send out a company-wide email to inform employees about the closure and its details. Encourage open lines of communication, so employees feel comfortable reaching out with any questions or concerns. Additionally, consider organising a festive event or party before the shutdown to boost team morale and celebrate the holiday season together. Health and Safety Even during a shutdown, employers are responsible for the health and safety of their employees. Ensure that the workplace remains safe during the closure by conducting necessary maintenance and security checks. Clearly communicate any safety measures or procedures that employees should follow if they need to access the premises during the shutdown. Conclusion Closing over Christmas can be a wonderful way for businesses to allow their employees to enjoy the holiday season, but it comes with specific employer obligations. By giving adequate notice, addressing holiday pay and leave entitlements, managing annual leave requests, implementing temporary closure policies, maintaining open communication, and ensuring health and safety, employers can create a smooth and stress-free Christmas shutdown. This not only supports employee well-being but also fosters a positive work environment that can lead to increased productivity and loyalty when the business reopens in the new year. HOW CAN WE ASSIST Essential HR are a partner you can rely on. Our HR solutions combine technology and expertise to make your business better. We’ll help you play by the rules, sort out those tricky problems and create efficiencies that maximise your success. visit www.esshr.com.au

Written by Harshini Elliott, Senior HR Partner, Essential HR HR compliance is a critical aspect of managing your business, as it ensures that all employers meet their legal obligations. Failure to comply with these obligations can expose you, as a business owner, to legal risks, financial penalties, and harm to your company's reputation. The average cost of non-compliance in an organisation continues to grow with shifting workplace policies, an ever-challenging hiring climate, and evolving regulations. As a result, more and more organisations are bringing compliance to the forefront of their strategies to ensure business continuity. Achieving mastery in HR compliance requires a comprehensive understanding and adherence to the various laws, regulations, and best practices governing the employer-employee relationship. HR compliance serves to safeguard both your business and your employees. To guide you on this journey, here's a step-by-step roadmap consisting of 18 crucial elements: Stay Abreast of Relevant Laws and Regulations: Continually educate yourself on federal, state, and local labor laws and regulations, keeping pace with any modifications. Establish an HR Compliance Program: Develop a tailored HR compliance program that encompasses policies, procedures, and guidelines designed to meet your business's unique needs. Audit Current Practices: Thoroughly assess your current HR practices to identify areas where compliance may be lacking, or improvements are needed. Create Clear Policies and Procedures: Craft and maintain transparent and consistent HR policies and procedures, ensuring employees have easy access to these documents. Formulate an Employee Handbook: Develop an employee handbook that clearly outlines company practices and expectations. Ensure all employees receive and acknowledge receipt of this handbook. Prioritise Training and Education: Provide regular compliance training and education for HR staff, managers, and employees, covering topics such as anti-discrimination, harassment prevention, and safety protocols. Maintain Records and Documentation: Establish and maintain organised employee records, including personnel files, payroll records, and compliance-related documents. Comply with Equal Employment Opportunity Laws: Adherence to EEO laws, including Australian Human Rights Commission Act 1986, Racial Discrimination Act 1975, Sex Discrimination Act 1984, Disability Discrimination Act 1992, Age Discrimination Act 2004, Fair Work Act 2009, Equal Opportunity for Women in the Workplace Act 1999 and relevant State and Territory Legislation. Wage and Time Tracking Compliance: Understand and comply with wage and Time Tracking laws, which govern minimum wage, overtime pay, and record keeping. Prioritise Health & Safety Compliance: Implement health & safety programs to comply with Workplace Health and Safety laws and regulations. Regularly inspect the workplace for safety hazards. Safeguard Privacy and Data: Protect employee data and adhere to privacy laws, such as the Privacy Act 1988 and the Australian Privacy Principles. Whistleblower Protection: Establish mechanisms for employees to report compliance concerns without fear of retaliation and have a defined process for handling whistleblower complaints. Implement Anti-Harassment and Anti-Discrimination Policies: Enforce policies that prevent and address workplace harassment and discrimination, conducting thorough investigations into complaints. Seek expert advice: Consult with employment and workplace compliance experts to ensure your business is fully compliant with complex laws and regulations. Use technology to automate and streamline: Unify and streamline your HR processes with an all-in-one HR platform, automating compliance is an easy way to stay on top. Encourage Employee Feedback and Communication: Foster open lines of communication for employees to provide feedback on compliance issues and address concerns proactively. Document Everything: Maintain thorough documentation of all compliance-related activities, including policy changes, training records, and investigations. Regularly Review and Update Your Compliance Program: HR compliance is an ongoing process. Regularly review and update your compliance program to adapt to changing laws and business needs. Keep in mind that HR compliance requires continual attention, and being proactive is crucial for achieving mastery in this area. Regularly evaluate your practices, adapt to shifts in the legal landscape, and make compliance a top priority in all HR-related activities to safeguard your organisation and its employees. HOW CAN WE ASSIST Essential HR specialises in ensuring comprehensive HR compliance to mitigate potential risks to your business. If you're interested in learning more about the services Essential HR provides and how we can assist you in implementing these steps within your company, please don't hesitate to reach out to us now. visit www.esshr.com.au

In today's dynamic business landscape, marked by relentless technological advancements, industrial shifts, and ever-changing market dynamics, it's imperative to periodically reassess your entire business operation. This proactive approach ensures that your organisation remains aligned with its core objectives, needs, and goals. Enter rightsizing – a strategic process designed to reshape your business for newfound objectives and heightened efficiencies. It's all about pinpointing the perfect size and structure for your enterprise. Do you have an excess of personnel? Can roles be consolidated for cost savings? Do you require individuals with different skill sets to fuel growth? These are the fundamental questions explored during the rightsizing journey. Businesses may embark on a rightsizing project for a multitude of reasons. Factors such as evolving market conditions, shifting customer preferences, and internal strategic shifts can all prompt a reassessment of your HR strategy. This could entail letting go of certain employees, hiring fresh talent, and reallocating existing resources to better serve your business needs and growth trajectory. When executed effectively, rightsizing can serve as a compass guiding your business in the right direction. It equips your enterprise to not only adapt but thrive in the face of industry or market shifts. While the decision to embark on a rightsizing journey may be challenging, it can be the key to eliminating future redundancies and boosting profitability. So, how can you determine if your business stands to gain from rightsizing? Several indicators can help you make this critical decision. Have your business objectives undergone a transformation? Do you need to bridge skill gaps within your workforce? Is your current staff structure not optimally supporting your business goals? If your answer is affirmative, it's likely that rightsizing is the path forward for your organisation. The advantages of rightsizing are manifold: 1. Enhanced Profits: By eliminating excess personnel and resources that impede your business growth, you can maximize your profits. This, in turn, enables your organization to become a more efficient and prosperous entity. 2. Smarter Hiring Decisions: Rightsizing presents an opportunity for introspection and evaluation to determine the necessity of specific employees and their alignment with your business objectives. 3. Competitive Edge: By allowing you to focus on your core strengths and ceasing unnecessary resource allocation, rightsizing positions your business ahead of the competition. The rightsizing process entails a comprehensive analysis of your organisational structure, identification of essential roles and employees, assessment of operational requirements, and, ultimately, implementation. If you're ready to rejuvenate your workforce through rightsizing, Essential HR boasts a wealth of experience in conducting effective and thorough rightsizing processes tailored to your business's unique needs, goals, and objectives. We specialise in managing end-to-end communication and preserving staff morale throughout the process, leveraging key strategies to mitigate risks to your business. Trust us to guide your business towards a leaner, more agile future. About Essential HR Essential HR are a partner you can rely on. Our HR solutions combine technology and expertise to make your business better. We’ll help you play by the rules, sort out those tricky problems and create efficiencies that maximise your success. Get in touch with us today. E: justine@esshr.com.au.

Are you ready to unleash the full potential of your workforce? Essential HR, in partnership with Employment Hero, has an exciting promotion for you! Sign up by 25th August and supercharge your growth. For New Subscribers: 3 months free HR when taking Platinum. 3 months free Payroll when taking Premium. 2 months free HR when taking Premium. 2 months free Payroll when taking Standard. Essential HR will take 40% off our Implementation fee For Existing Subscribers: Thinking of enhancing your existing subscription? Now is the perfect time! Add HR or Payroll to your existing subscription by 25th August for: 3 months free HR when taking Platinum 3 months free Payroll when taking Premium 2 months free HR when taking Premium 2 months free Payroll when taking Standard Essential HR will take 40% off our Implementation fee Software - Employment Hero Unify and streamline your HR processes with our all-in-one platform, empowering your team and automating your workplace. Benefits & Features: Increased Efficiency: The HR software will automate routine HR tasks, such as employee onboarding, policy acknowledgement, records of certifications, leave & timesheet management, and performance reviews. This will significantly reduce manual efforts, minimise errors, and allow the business to focus on strategic initiatives. Enhanced Employee Experience: A user-friendly self-service portal will be accessible to all employees, enabling them to manage personal information, access payslips, complete timesheets, complete self-performance evaluations, tap into staff benefits and submit leave requests effortlessly. This self-service feature will promote transparency and empower employees to take ownership of their HR-related needs. Centralised Data Management: The HR software will serve as a single repository for all employee-related information, including employment details, document management, employment history, pay details, leave management, timesheets, performance reviews, training records, and more. This centralised database will ensure data accuracy, improve compliance, and facilitate efficient reporting. Recruitment: Allows you to effortlessly advertise roles, track applicants, manage referrals, communicate with candidates, and onboard new talent. HR Metrics & Reporting: Providing a set of pre-built reports as well as custom reports that cater to the unique needs of your organisation. The Reports are designed to empower HR and line managers with essential insights and comprehensive analytics that enhance your workforce's efficiency and drive business growth. Learning Management: Access the Learning Management System (LMS), which you can enable in your HR platform to help you create, assign, and track employment-related learning within your organisation. Create and assign longer, multi-media courses for your employees to complete. Or you can use the feature in a lightweight manner and use simply to host quizzes or test following training that your organisation may have held in person. Employee Engagement: Design employee surveys to measure your employees’ thoughts, opinions, and feelings within your workplace and use these insights to build a stronger workplace culture. Features exit interviews, employee happiness surveys or custom surveys. Goals: The Goals (OKRs) feature allows you to create a new company, team or individual goal and specify what the key results are, and how you can measure the progress of these objectives. Performance Reviews: Set up online performance reviews, 1:1 meetings and 360 performance reviews to streamline your performance management system. Use for probationary reviews, regular feedback sessions or as part of your formal annual performance review process. Compliance and Security: The HR software will adhere to industry-leading security standards to protect sensitive employee data. It will also facilitate compliance with employment laws and regulations, minimising potential risks and liabilities. About Essential HR Essential HR is a dynamic and innovative organisation that recognises the significance of streamlined human resources management for optimal operational efficiency and employee engagement. As part of our ongoing commitment to enhancing internal processes, we recommend the implementation of advanced HR software, Employment Hero to revolutionise your HR function and improve overall employee experience. Get in touch with us now to take advantage of this great offer. E: justine@esshr.com.au.

In today's fiercely competitive job market, attracting and retaining top talent is a strategic imperative for organisations across industries. As a result, companies are increasingly recognizing the importance of best practice human resources, in particular, developing a strong Employee Value Proposition (EVP). What is an EVP? EVP is a unique set of offerings, benefits, and opportunities that an organisation provides to its employees in exchange for their skills, knowledge, and dedication. In this article, we will explore the concept of an Employee Value Proposition and delve into its significance for both employers and employees. Defining the Employee Value Proposition: The Employee Value Proposition represents the unique combination of tangible and intangible factors that differentiate an organisation as an employer of choice. It encompasses the total value an employee receives from working for a particular company, including financial compensation, career growth opportunities, work-life balance, company culture, and employee benefits. Essentially, the EVP is the sum of all the reasons an employee would choose to work for a company and stay there. Components of a Compelling EVP: Clear and Authentic Employer Branding: A well-defined EVP starts with establishing a clear employer brand that communicates the organisation's mission, values, and culture. By presenting an authentic representation of the company's identity, values, and vision, employers can attract individuals who align with their organisational ethos. Competitive Compensation and Benefits: Competitive compensation is a crucial element of any EVP. Employees want to be fairly rewarded for their skills and contributions. Additionally, a comprehensive benefits package that addresses healthcare, retirement plans, and work-life balance initiatives adds to the overall value for employees. Opportunities for Growth and Development: Top talent seeks opportunities to learn, grow, and advance their careers. An EVP should outline clear pathways for professional development, whether through training programs, mentorship initiatives, or promotion prospects. By investing in their employees' growth, companies can foster loyalty and engagement. Positive Work Environment and Culture: A positive work environment, supportive culture, and strong leadership contribute significantly to an appealing EVP. Employees want to feel valued, respected, and empowered. Encouraging collaboration, recognizing achievements, and promoting work-life balance can help create a culture that attracts and retains talent. Work-Life Balance and Flexibility: In today's dynamic work landscape, work-life balance and flexibility are increasingly prioritized by employees. Offering flexible work arrangements, remote work options, and policies that support personal well-being can enhance the EVP, attracting individuals seeking a healthy work-life integration. The Benefits of an Effective EVP: An organisation that successfully develops and delivers a compelling EVP can experience a range of benefits, including: Attraction and Retention of Top Talent: A strong EVP acts as a magnet for talented individuals, enabling organisations to attract and retain high-performing employees who align with their values and aspirations. This reduces recruitment costs and fosters stability within the workforce. Increased Employee Engagement: An EVP that addresses employees' needs and aspirations enhances engagement levels. Engaged employees are more productive, innovative, and dedicated to their work, contributing positively to the company's overall success. Enhanced Employer Brand: A well-crafted EVP helps build a positive employer brand, enhancing the organisation's reputation and making it more attractive to potential candidates. A strong employer brand can also lead to increased customer loyalty and market competitiveness. Reduced Turnover and Associated Costs: An effective EVP helps minimize employee turnover rates by providing a compelling reason for employees to stay with the organisation. This reduces the costs associated with recruitment, onboarding, and lost productivity. How can Essential HR help? In a competitive job market, organisations must invest in developing a compelling Employee Value Proposition to attract and retain top talent. As specialists in human resource management and industrial relations, Essential HR assists Australian businesses to create a compelling EVP that sets them apart from their competitors. We look at aligning compensation, benefits, professional growth opportunities, work environment, and work-life balance initiatives. In doing so, we help create an effective EVP to not only attract the right talent but also improve employee engagement, reduce turnover, and enhance the organisation's overall performance. In today's talent-driven economy, organisations that prioritize their EVP are more likely to thrive and succeed in the long term. To learn more visit our website at: www.esshr.com.au or get in contact with us.

Written by Michaella Prow, Recruitment Partner In this competitive candidate market, it’s even more important than ever to retain good employees to ensure the success of your organisation. Many employers leave it too late to find out why an employee is leaving, and whilst exit interviews have a place to identify any issues or areas you can improve in, it’s essential to be more proactive. Why? Retaining employees, means that you can invest and develop individuals, making the teams more productive and motivated, which strengthens your workforce and allows for company growth. It also saves money, as hiring and training new employees can be costly. How? There are a number of ways that you can retain employees, through their employment journey with you, such as: Provide a positive onboarding experience: An employee’s first day is often seen as the ‘moment of truth’, where they find out if all the promises made to them during the recruitment process are brought to fruition. Your onboarding process should reflect the core values of your organisation, and aim to be as engaging as possible, utilising technology for ease. Getting this right means your employee is engaged from day 1 and set up for success! Hold regular and constructive 1:1’s: Consistency and adding value are the key points here. Setting regular times to catch up with an employee, and sticking to that, is important. Consider questions which will add benefit and insight, which may be different for each employee. Don’t just focus on the individual’s role, but also the bigger picture of the organisation. Example questions can include - Why did you decide to join us and are we living up to your expectations? If you were managing yourself, what would you do differently? Is there anything that frustrates you on a day-to-day basis? Is there anything we are doing that you feel could be improved? Is there anything that would entice you to leave us? If we think about the reason we last left a job, it's likely that it started as a small issue or concern, but it snowballed as it wasn’t discussed / acknowledged, so it’s essential to have these ‘stay conversations’. Offer Training & Development: Offering training shows an employee that you are invested in them and want to support them in their development. This can be done through formal training such as registering them on an external skills based or personal development course, or more informally through offering internal mentoring and opportunities to step up into a leadership role to cover a managers leave. Have regular team meetings: This is something that builds connection and trust within teams. Again, it can be done formally in the workplace to discuss current activities, questions, concerns, or share knowledge related to work; or more informally though team building activities and a chance to just connect and catch up with each other. Offer a competitive salary and benefits : This is obviously a conversation that you have with a candidate when you make the initial offer to work with your organisation, but after that, the topic of remuneration is often swept under the carpet. As the employee grows and develops in their role, and as the external candidate market changes, it’s important to acknowledge that with your employee. Offering a current employee a pay rise, would be cheaper than going through a recruitment process to advertise, hire and onboard a new employee. Encourage work life balance: Flexible working and work life balance has become increasingly important for employees and is often cited as a reason for leaving employment. Offering a mental health day once a month, a paid day off on their birthday, or a slight adjustment to their hours so they can pick their child up from school once a week could make a big difference, and it won’t cost you a thing. Show your appreciation: Research shows that employees are more likely to leave their job if they feel underappreciated, so it’s important that employees know they are valued. It can be as simple as saying ‘good job on that project you completed yesterday’ or give them a bonus or a small gift thanking them for their contribution. Which of these options you choose may depend on factors such as the sector you are in, the size of the organisation, the culture, the individuals’ personalities, and the employment type (such as casual, full time, part time); but research shows that adopting strategies like this will certainly increase your retention, which in turn strengthens your workforce and your brand. If you would like to know more about how you can support your employees and provide a positive working environment, please contact us at Essential HR . How can we help? As specialists in human resource management and industrial relations, Essential HR assists Australian businesses navigate their way through the complexities around employing people. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au . This information is of general guidance only and is not legal advice. Readers are encouraged to consider this information in their own context and with independent advice.

Last Friday, The Fair Work Commission announced a 5.75% National Minimum Wage increase, including Modern Awards, effective 1 July 2023. For anyone not covered by an award or an agreement, the new national minimum wage (NMW) will be $882.80 per week or $23.23 per hour. All Modern Awards will also be subject to a 5.75% increase effective 1 July 2023. Any one on enterprise agreement will need to ensure base rates are not below the new rates in the applicable modern award. This will lift an Adult's minimum annual salary to $45,902.48. It will be worth checking not only staff on minimum Award rates of pay but also those paid higher rates to ensure they have not now fallen under the minimum. If you need assistance in working out how this decision impacts your business, please contact us . How can we help? As specialists in human resource management and industrial relations , Essential HR assists Australian businesses navigate their way through the complexities around employing people. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au . This information is of general guidance only and is not legal advice. Readers are encouraged to consider this information in their own context and with independent advice.

The Fair Work Commission will live stream the handing down of the Annual Wage Review 2022–23 decision at 10am AEST on Friday, 2 June 2023 . Each financial year the Commission reviews and sets minimum wages. New minimum rates of pay are then reflected across Modern Awards, typically (pre-COVID) these increases are effective 1 July (or the first full pay cycle after 1 July). Last year 2021/2022 there was a 4.6 per cent, subject to a minimum increase for adult award classifications of $40 per week, increase. We will share the more information once announced on Friday. How can we help? As specialists in human resource management and industrial relations , Essential HR assists Australian businesses navigate their way through the complexities around employing people. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au . This information is of general guidance only and is not legal advice. Readers are encouraged to consider this information in their own context and with independent advice.

Written by Harshini Elliott, Senior HR Partner Effective 1 July 2023, the Secure Jobs, Better Pay Bill will see the jurisdictional limit for small claims proceeding under the Fair Work Act 2009 increase from $20,000 to $100,000. This will enable employees to bring a claim for underpayment up to the value of $100,000 in the small claims jurisdiction of the Federal Circuit Court and state and territory courts. Currently, underpayment claims which exceed the small claims cap can only be determined by the way of a formal court process. Undoubtedly, this process can be significantly complex, expensive, stressful and time-consuming, especially for low-level employees. As a result, this often leads to employees either dropping parts of their claim in order to meet or fall behind the small claims threshold or cancel their claim in its entirety. As an Employer, this will mean that a great number of employees seeking to resolve claims (including that of underpayments) under the Fair Work Act will be able to access a more efficient and more cost-effective process to resolve their claims. It will effectively make it more accessible for employees to bring an underpayment claim against their Employer and for it to be resolved more quickly and more affordably for the employee. From 1 July 2023, the claims that can be run as small claims proceedings include: Where the compensation sought is $100,000 or less; and Where the dispute is about: a term of a National Employment Standard; a term of a modern award; a term of an enterprise agreement; a workplace determination; a national minimum wage order; an equal remuneration order; a safety net contractual entitlement; and a conversion of casual employment to full-time or part time employment It is anticipated that there will be a greater number of claims for underpayment when this change takes effect. Employers are encouraged to undertake rigorous reviews into their staffing and payroll to ensure employees are receiving the correct payment and entitlements. Where an underpayment is identified, it is strongly recommended that this is reconciled well before 1 July 2023. How can we help? As specialists in human resource management and industrial relations, Essential HR assists Australian businesses navigate their way through the complexities around employing people. If you would like to learn more about the changes to small claim matters or need assistance with an internal review of your employee pay and entitlements to ensure there are no underpayments, please contact us at Essential HR. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au . This information is of general guidance only and is not legal advice. Readers are encouraged to consider this information in their own context and with independent advice.

Written by Harshini Elliott, Senior HR Partner In today’s world, designing and sustaining a viable organisational structure can be challenging. Not only do you need to consider the roles required in your business and reporting relationships, you also need to consider the economic, social, political, technological, and environmental factors. As CEO’s or Business Owners, it can be challenging and time-consuming keeping on top of these factors. When it comes to your organisational structure the success of your business depends on it. Often the wrong structure can result in a dysfunctional business and can hinder progress rather than promoting it. Here are some key signs that your organisational structure may be dysfunctional: 1. Poor Communication: If communication is poor or ineffective between departments, teams, or individuals, it's a clear sign that your organizational structure is not working. This can lead to misunderstandings, duplication of effort, and missed deadlines. 2. Lack of Accountability: If there is a lack of accountability or responsibility for tasks, it can indicate that your organizational structure is unclear or incomplete. This can lead to finger-pointing, missed opportunities, and poor performance. 3. Slow Decision-Making: If decision-making is slow or ineffective, it's a sign that your organisational structure may be too bureaucratic or hierarchical. This can lead to missed opportunities and lost revenue. 4. Low Employee Morale: If employee morale is low, it can be a sign that your organisational structure is not supportive or empowering. This can lead to high turnover rates, low productivity, and poor customer service. 5. Inefficient Processes: If processes are inefficient or cumbersome, it can indicate that your organizational structure is not well-designed. This can lead to wasted time and resources, and can hinder innovation and growth. 6. Silos and Lack of Collaboration: If departments or teams work in silos and don't collaborate effectively, it's a sign that your organisational structure is not promoting communication or teamwork. This can lead to missed opportunities and poor decision-making. 7. Lack of Flexibility: If your organizational structure is rigid and inflexible, it can indicate that your business is not able to adapt to changing market conditions or customer needs. This can lead to missed opportunities and lost revenue. It may be a good time to undertake an organisational review. An organisational structure review is a process to collect, review, analyse and interpret relevant information about the organisation to strengthen its position. The purpose of the review is to enhance organisational success, improve efficiencies and enable leadership to focus on growth and strategy of the organisation. There are 3 main purposes for conducting an organisational structure review: Foundation for strategy development and implementation by providing critical insights needed to develop and launch new directions, goals, objectives, and priorities. Is key to the success of project and change management efforts by analysing information about the goals, stakeholders, expected benefits, impacts and other related information. Improve organisational performance and results . Results often lead to improvement in processes, structure, skill development, revenue generation and cost reduction initiatives. Essential HR is qualified and experienced in conducting a rigorous organisational structure review to support your business to achieve organisational success. Our 5-step process below will guide you through the ins and outs of your business that you may not be aware of. We will support you throughout the review with recommendations, communication strategies and advice: Development of a comprehensive workforce plan (if one does not exist already) to analyse the workforce to determine the steps your organisation will need to take to meet current and future staffing needs. This process also involves determining the most efficient and cost-effective methods to recruiting and retaining talent. Review and audit the existing organisational structure within your business, identifying the strengths, weaknesses and challenges of the current structure and areas for change, including any potential redundancies. Develop a comprehensive succession plan by reviewing all position descriptions, employee skills and qualifications and employee capacity to take on more work. Development of one or more new organisational structures that would set the business up for success, based on the information obtained from the above steps. Development of a communication and consultation strategy to ensure employees are kept in the loop at all times and stress and anxiety on employees is minimised throughout this process. "Essential HR and the team have been amazing in their efforts to help the CEO and board of directors during a time of change for the Organisation and we are extremely grateful for the level of engagement, professionalism and quality of the support we have received from the team in particular Harshini and Justine. Having undertaken an organisational structure review with the assistance of Essential HR has been a valuable experience and highly recommended. " How can we help? As specialists in human resource management and industrial relations, Essential HR assists Australian businesses navigate their way through the complexities around employing people. We deliver a range of HR Services including outsourced HR, HR Projects & Recruitment. To learn more how we can assist your business visit our website at: www.esshr.com.au . This information is of general guidance only and is not legal advice. Readers are encouraged to consider this information in their own context and with independent advice.

Student visa work restrictions were relaxed throughout the pandemic, and completely removed in January 2022, to allow primary and secondary student visa holders to work over their normal limit of 40 hours per fortnight, in order to address workforce shortages. From 1 July 2023 , work restrictions for student visa holders will be re-introduced and capped at the increased rate of 48 hours per fortnight . This ensures that student visa holders can focus on obtaining a quality education, while remaining able to support themselves financially, and contribute to Australia’s workforce needs. What does this mean for employers: If you employ international students, it is important to stay abreast of their visa status and conditions, noting that the Department of Home Affairs can impose infringement notices against organisations that engage a worker in breach of their visa conditions. You can ask employees on a Student Visa to send you their details from VEVO, check the work rights yourself using VEVO , or request your HR Partner to do this for you. Ensure that from 1 July 2023 employees on a Student Visa do not work more than 48 hours per fortnight. Employers must continue to follow Australian workplace law. Overseas workers, including international students, have the same rights under Australian workplace law as all other employees. For more information visit: Check visa details and conditions (homeaffairs.gov.au) Immigration and citizenship (homeaffairs.gov.au) Hiring someone in Australia (homeaffairs.gov.au) How can we help? As specialists in human resource management and industrial relations, Essential HR assists Australian businesses navigate their way through the complexities around employing people. We deliver HR Partnering Services via an outsourced model. With a powerful combination of technology (Employment Hero) and HR/IR expertise, we deliver efficiencies, compliance, pragmatic advice, and solutions for small-medium business. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au . This information is of general guidance only and is not legal advice. Readers are encouraged to consider this information in their own context and with independent advice.

Written by Tanya Hibell, HR Advisor, Essential HR Sexual harassment in the workplace is a serious issue that can have devastating effects on individuals and organisations. From 6 March 2023, new protections under the Fair Work Act took effect that prohibits sexual harassment in the workplace, or in connection with work. These expanded protections cover workers (such as employees, contractors, work experience students, volunteers and future workers), and people conducting a business. Furthermore, the employer or business owner can now be liable if a worker commits sexual harassment, unless they can prove that they took all reasonable steps to prevent it. In this article, we will explain the meaning of sexual harassment, your legal obligations as an employer or business owner, and what you need to do to create a safe working environment for your workers by eliminating sexual harassment and sex discrimination in your workplace. What is Sexual Harassment? Under the Fair Work Act, sexual harassment is defined as: an unwelcome sexual advance or an unwelcome request for sexual favours to the person who is harassed; other unwelcome conduct of a sexual nature in relation to the person who is harassed. It is important to note that sexual harassment is determined by the impact of the behaviour on the person who experiences it, rather than the intention of the person who engages in the behaviour. Therefore, even if the offender did not intend to cause harm or did not realise that their behaviour was unwelcome, if their behaviour has caused the person being harassed to feel offended, humiliated, or intimidated, it can still be considered sexual harassment. Sexual harassment is unlawful regardless of the sex, sexual orientation, or gender identity of the parties. Hostile Workplace Environment A workplace environment that is “hostile on the grounds of sex” refers to a situation where an employee's gender or sex is the basis for ongoing and severe harassment, discrimination, or mistreatment that creates an intimidating, offensive, or hostile work environment. This can include unwanted sexual advances, comments or jokes of a sexual nature, physical touching, or the use of derogatory or demeaning language or gestures that are directed towards an individual because of their sex. A hostile work environment can be created by anyone in the workplace, including supervisors, co-workers, or customers. It can have a significant impact on the victim's emotional and physical health, job satisfaction, and performance, and may also result in higher turnover rates, lower morale, and decreased productivity. New Fair Work Commission powers The Fair Work Commission now has greater powers to deal with workplace sexual harassment complaints and disputes through conciliation, mediation, or recommendations. If the dispute is unable to be resolved by any of these methods, the Commission may be able to deal with the dispute by arbitration. Applications to the Commission can be made by: a person or group of people alleging sexual harassment (such as a worker or group of workers), or an industrial association, such as a union, on behalf of their member or members. It is useful to note that an application can only be made if the worker is still employed within that workplace. The Fair Work Commission will not grant the application if the employee resigned and is no longer in the workplace. Assess and minimise risks Sexual harassment is a common and known cause of physical and psychological harm. Employers must treat the risk of sexual harassment just as they would other workplace risks by using a risk management approach to eliminate or minimise risks so far as is reasonably practicable. Managing risks involves: identifying how, where and when sexual harassment might happen; assessing the likelihood that a worker may experience sexual harassment and how it may affect them (e.g. their physical or mental health); implementing the most effective control measures to prevent sexual harassment from happening, and work out how you will address it if it does happen ; checking that your controls are working and whether there is anything more you can do, and; doing all of these things in consultation with your workers and health and safety representatives (HSRs) if you have them. Legal Obligations as an Employer A positive duty to eliminate sexual harassment and sex discrimination in the workplace means that employers have a legal and ethical obligation to take active steps to prevent and address these issues. In addition to being a legal requirement, fulfilling a positive duty to eliminate sexual harassment and sex discrimination can benefit employers in many ways, including creating a safer and more respectful workplace, improving employee morale and retention, and enhancing the organisation's reputation and brand. It can also lead to higher employee satisfaction, increased productivity, and a more positive and inclusive work environment for all employees. It is also important to remember that this duty will not only apply to harassment that occurs to employees at the hands of their colleagues, but also harassment from clients and customers. What employers need to do It is important to understand that sexual harassment can be a difficult issue to identify and that many victims may not feel comfortable coming forward with their experiences. As a result, just because there have not been any reported incidents or evidence found does not necessarily mean that sexual harassment is not happening in the workplace. Employers should proactively take steps to prevent sexual harassment and create a culture of respect, equality, and inclusion in the workplace. This can include implementing policies that prohibit and address sexual harassment and sex discrimination, provide procedures for reporting and addressing complaints, and regularly reviewing and updating these policies and procedures. It is also important for employers to provide training and education to employees and managers on what constitutes sexual harassment and how to prevent it. Additionally, employers should encourage open communication with their employees and create an environment where employees feel comfortable reporting incidents of sexual harassment without fear of retaliation. By taking these proactive steps, ensuring swift and appropriate action to investigate and address complaints when they arise, and holding accountable those who engage in harassing or discriminatory behaviour, employers can create a safe and welcoming workplace for all employees and prevent instances of sexual harassment from occurring in the first place. Employers should also ensure they provide support to individuals experiencing harassment, such as an Employee Assistance Program (EAP). An EAP can be a valuable resource for employees who are experiencing harassment or other forms of distress. If your business does not currently have an EAP, it may be worth considering implementing one. For more information and resources on how to help and prevent and address workplace sexual harassment, please visit: Respect@Work. Fair Work Ombudsman. Safe Work Australia How can we help? As specialists in human resource management and industrial relations, Essential HR assists Australian businesses navigate their way through the complexities around employing people. We deliver HR Partnering Services via an outsourced model. With a powerful combination of technology (Employment Hero) and HR/IR expertise, we deliver efficiencies, compliance, pragmatic advice, and solutions for small-medium business. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au . This information is of general guidance only and is not legal advice. Readers are encouraged to consider this information in their own context and with independent advice.

Coming into effect Tuesday 6 June 2023 are changes to the Flexible Working Arrangements (Section 65A) of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022. These changes provide further obligations on the employer to provide Flexible Working Arrangements to employees. From 6 June 2023, the right to request flexible working arrangements will also apply to employees who are pregnant and employees, or immediate family members experiencing domestic violence. Process of responding to requests: The amendment to the bill introduces a new section 65A dedicated to the process of responding to requests for Flexible Working Arrangements. The amendment firms up on an employer’s obligation when responding to a request, including the requirements to discuss the proposed changes, genuinely trying to reach an agreement before refusing the request, and providing detailed reasons for the refusal. The amendment continues the current obligation of employers to respond to requests within 21 days. The section now clearly outlines what must be done by the Employer within those 21 days. The Employer has 3 options when responding to a request for Flexible Working Arrangements from an employee: The employer may accept the request; The employer and the employee may discuss the matter, with both parties then reaching an agreement which differs from the original request. If this occurs, the employer must set out the agreed change and implement it; or The employer may refuse the request. A refusal is subject to further conditions. Considerations for such requests: Employers must be exceptionally careful in determining a request once the new legislation starts on 6 June 2023. It is important that employers not only deal with requests within the 21 day period, but that they properly discuss it with the employee in an attempt to make reasonable steps to implement arrangements. The process employers will need to follow before they can refuse a request from an employee around Flexible Working Arrangements is: Discuss the request with the employee (recommending written notes from this discussion); Make a genuine effort to find alternative arrangements to accommodate the employee’s circumstances; Consider the consequence of refusal for the employee; Provide a written response to the employee within 21 days of the request made, that includes: An explanation of the reasonable business grounds for refusing the request and how these grounds apply to the request. Other changes the employer is willing to make that would accommodate the employee’s circumstances or that says there aren’t any changes. Information about referring a dispute to the Fair Work Commission. Grounds to refuse a request for Flexible Working Arrangements: An employer can only refuse a request for flexible working arrangements if they have: discussed the request with the employee, and genuinely attempted to make changes to the employee’s working arrangements to accommodate the reasons for the request. An employer can only refuse a request if: No arrangements can be agreed upon; T he employer had regard for the consequences of a refusal; or if T he refusal is on reasonable business grounds. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 clarifies that genuinely trying to reach an agreement does not require the employer to accept an employee’s request. The employer can still refuse on reasonable business grounds. What are "reasonable business grounds"? Examples of ‘reasonable business grounds’ as per the legislation are: the new working arrangements requested would be too costly for the employer; there is no capacity to change the working arrangements of other employees to accommodate the new working arrangements requested; it would be impractical to change the working arrangements of other employees, or recruit new employees, to accommodate the new working arrangements requested; the new working arrangements requested would be likely to result in a significant loss in efficiency or productivity; the new working arrangements requested would be likely to have a significant negative impact on customer service. Communication of Refusal An employer must still communicate any refusal to an employee and must include reasons why the request was refused. This must include both the particular business grounds on which the request was refused, and how those grounds applied to the request. The refusal response must also set out the employee’s right to challenge the refusal in the Fair Work Commission discussed below. Application for review in the Fair Work Commission Under the current legislation, if a request is denied, an employee has no further avenue of review of the dispute. With the changes to the new legislation in June, the legislation will now provide an option for employees to escalate the dispute to the Fair Work Commission if: it cannot be resolved in the workplace; the employer did not respond to the request within 21 days; or the employer has refused the request within that time, and the employee says these are not legitimate and/or reasonable business grounds. If a dispute is referred to the Fair Work Commission, the Commission must first attempt to deal with it by means other than arbitration (i.e., by conciliation or mediation). If this process does not resolve the dispute, the Fair Work Commission can then proceed to arbitration, to make a binding decision on the parties. Powers of Fair Work Commission to determine disputes The Fair Work Commission can make a series of orders including: if an employer did not respond to a request for flexible work with written notice, it can order that an employer refused the request (i.e., a deemed refusal); it can order the employer to provide information supporting any deemed refusal; if an employer refused the request (either actually, or by a failure to respond within 21 days) the Commission may order that this refusal was, or was not, made on reasonable business grounds; it can order the employer to accept the request; it can order the employer to make specified changes that were not in the original request; or it can uphold the decision and refuse the request. The Commission must take into account fairness between employer and employee in making an order. Its orders cannot be in contradiction with the Act, or any legislative instruments under the Act. Penalties for Non-Compliance If an employer refuses to implement orders of the Fair Work Commission, a civil remedy is available to an employee under section 539 of the Fair Work Act . An employee, employee organisation or inspector can apply to the Federal Court, the Federal Circuit and Family Court, or any other eligible State or Territory Court seeking a penalty. This penalty is up to $16,500. You can view the full details of the amendment here – Fair Work Act 2009 – Sect 65 How can we help? As specialists in human resource management and industrial relations we assist Australian businesses navigate their way through the complexities around employing people. We deliver HR Partnering Services via an outsourced model. With a powerful combination of technology (Employment Hero) and HR/IR expertise, we deliver efficiencies, compliance, pragmatic advice, and solutions for small-medium business. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au. This information is of general guidance only and is not legal advice. Readers are encouraged to consider this information in their own context and with independent advice.

Written by Justine Pepper, Managing Director, Essential HR Source: Will Snow & Molly Shanahan, Finlaysons Lawyers Do you perform surveillance on your employees? Have you considered surveillance in your workplace? Are your employees aware of and have consented to workplace surveillance? In South Australia, there is no specific legislation directly regulating workplace surveillance. However, the Surveillance Devices Act 2016 (SA) ( SD Act ) will apply to surveillance undertaken in a workplace context. Essentially, under the SD Act, employers must obtain an employee’s consent before engaging in any type of surveillance (video, audio, GPS tracking, computer surveillance etc). Employee consent can be obtained via the implementation of a company surveillance policy, or/and by agreement in an employee’s employment contract. What about using surveillance for performance management and possible terminations? This is certainly possible. However, for any surveillance to be admissible in proceedings, obtaining the surveillance must not have breached any relevant legislation. For example, the Fair Work Commission may agree that surveillance evidence can be used during an unfair dismissal proceeding where the employee was aware of and consented to the surveillance. To ensure you are covered we recommend employers have a comprehensive workplace surveillance policy in place and include a workplace surveillance clause in your employment contracts. In addition, Employers should be aware of their obligations under the Privacy Act 1988 when undertaking surveillance and implementing Policy. How can we help? As specialists in human resource management and industrial relations we assist Australian businesses navigate their way through the complexities around employing people. We deliver HR Partnering Services via a hybrid model. With a powerful combination of technology (Employment Hero) and HR/IR expertise, we deliver efficiencies, compliance, pragmatic advice, and solutions for small-medium business. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au. This information is of general guidance only and is not legal advice. Readers are encouraged to consider this information in their own context and with independent advice.

Implementing HR software into your organisation is easy and affordable today. Start 2023 by implementing the right HR software into your business to streamline HR processes, reduce manual HR tasks and meet your compliance obligations. Free up your time and focus on HR initiatives that add value to your business. What are the benefits in shifting your HR from paper to digital? Apart from the environmental benefits in creating a paperless HR office, below are 5 key benefits: 1. WANT MORE TIME Reduce your time in administering all the necessary paperwork, such as employment contracts , HR letters and documents to be issued to employees. Onboard new employees within minutes, triggering onboarding checklists. 2. BE COMPLIANT Stay on top of employees signing off HR policies & procedures, employment contracts, Fair Work Information Statements or changes in terms and conditions. Receive automated alerts around certifications up for renewal, Visa’s expiring etc. 3. AUTOMATE APPROVAL PROCESSES Enjoy leave requests , timesheets and certifications electronically work flowing for manager approval. 4. INTEGRATE WITH PAYROLL Data from employee files can automatically flow through to the payroll . No more duplication of entering employee information. 5. EMPLOYEE AND MANAGER TRANSPARENCY Employees have control updating their own personal details including bank details, Superannuation and Tax Declaration. Managers have oversight of their team to view things such as leave requests, performance reviews , emergency contacts and more. How can you take your HR to the next level? Essential HR have been a preferred partner with Employment Hero (HR technology) since 2016. We have implemented Employment Hero into more than 50 South Australian businesses and continue helping them maximise its capabilities. For more information on HR Software visit https://www.esshr.com.au/employment-hero .

Understanding exactly what you pay superannuation on when termination of employment occurs can be a little confusing and unclear. The rule of thumb is you are required to pay 10.5% company super on an employee’s ordinary times earning (OTE). OTE includes an employee’s ordinary hours of work, commissions, bonuses, allowances, and annual leave. So, what super do you pay when employment ends? Is super paid on notice periods, redundancy payments, accrued annual leave and long service leave payouts and leave loading? Firstly, let’s take a look at what an employee termination payment actually is. What is an employee termination payment? An employee termination payment (ETP) or “final pay” is a lump sum payment made when a person’s employment ends. Termination could be for reasons such as redundancy, dismissal, resignation, retirement, or death. The Fair Work Ombudsman states that when an employment relationship ends, the employer must pay: wages or other remuneration still owing; payments in lieu of the notice of termination (should the employee not work out their notice period); accrued annual or long service leave entitlements; redundancy entitlements (if eligible). According to the Australian Taxation Office (ATO) , ETPs can include: payments for unused sick leave or unused rostered days off payments in lieu of notice a gratuity or 'golden handshake' an employee's invalidity payment (for permanent disability, other than compensation for personal injury) compensation for loss of job or wrongful dismissal genuine redundancy payments early retirement scheme payments that exceed the tax-free limit certain payments made after the death of an employee the market value of the transfer of property (less any consideration given for the transfer of this property). The ATO says ETPs do not include: lump sum payments for unused annual or long service leave the tax-free part of a genuine redundancy payment or an early retirement scheme payment superannuation benefits (for example, a lump sum or income stream from a super fund) foreign termination payments. Is superannuation paid on termination payments? Generally, termination payments do not include superannuation benefits. Certain termination payments are not part of an employee’s OTE. The ATO says that termination payments for unused annual leave and long service leave are not OTE. In these circumstances, the employer can refuse to pay superannuation. An exception applies if your employer pays out a relevant notice period (ie payment in lieu of notice), as this becomes part of your OTE. A termination payment made in lieu of notice is considered OTE because it is equivalent to the ordinary amount you would have earned had your employment continued until the end of the notice period. Here’s a quick table to summarise a few different types of termination payments and whether employers typically must pay super on them. Termination payments and super eligibility. Termination payment Superannuation payment Payments in lieu of notice Yes Unused annual & long service leave No Annual Leave Loading (for unused annual leave) No Redundancy payments No Unfair dismissal payments No For further information around what you pay superannuation on click here: List of payments that are ordinary time earnings. How can Essential HR help? As specialists in human resource management and industrial relations we assist Australian businesses navigate their way through the complexities around employing people. We deliver HR Partnering Services via a hybrid or virtual model. With a powerful combination of technology and expertise, we deliver efficiencies, compliance, pragmatic advice and solutions. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au.

Outsourcing practices for a range of business needs such as IT, Marketing & HR has been popular over the last 30+ years. The concept is very familiar with small-medium businesses who cannot financially support “expert” resources internally, nor do they need these resources on a full-time basis yet want the assurance of receiving HR advice and support across the working week. Our philosophy around outsourcing is: “if you cannot justify recruiting an “expert” who has the right experience and qualification required to help you manage and grow your business successfully, then look for the right “expert” externally who can be there when and as you need them”. In the past businesses preferred HR resources to work onsite. However, COVID-19 and technology has shifted this thinking globally resulting in an acceptance and even encouragement for HR staff to work remotely or under a hybrid model (combination of remote and on-site). Both scenarios have proven to be effective. Essential HR understand the importance of face-to-face contact whilst delivering all the benefits of an outsourced HR department. Here is how we successfully do it: 1. Implement smart technology. Often the systems and processes businesses have internally to manage their HR are manual and inefficient with paper files living onsite in the office. Essential HR stay ahead with technology to offer automated processes to improve efficiency & compliance , reducing errors, cost and time spent on HR administration. As the 1st Employment Hero (HR software) implementation partner in Australia we will implement Employment Hero and continually improve your HR operational processes and procedures. 2. Support and coach non-HR people managers. Every business has limited resources, and every manager has limited time and attention. Outsourcing can help your business to shift its focus from peripheral activities towards work that serves the customer, and it can help managers set their priorities more clearly. We work alongside managers, both on-site and remotely, coaching and advising them to help build their HR capabilities and maximise their use of the management tools available in Employment Hero. 3. Provide dedicated HR experts. You and your management team will have access to a dedicated, experienced and qualified local HR/IR Business Partner who will be assigned to your organisation to manage key functions and priorities of the organisation’s strategic and operational HR requirements. Essential HR consultants originate from HR Management roles in organisations and understand the complexities of workforce management and company culture, and how HR strategies, policy, programs, and practices impact performance. 4. Immediate advice & support. As HR is our core business, we can quickly and efficiently get up and running to provide effective and pragmatic employee relations and workplace advice to you and your managers. Our experts know their stuff covering areas such as Modern Awards, Enterprise Agreements and employment legislation. We will advise you on employee entitlements, rates of pay, managing investigations, underperformance, grievances, misconduct issues, termination of employment matters, and introducing operational changes into the workplace including the possibility of redundancies . 5. Reduce your risk . Employing and paying staff carries a certain amount of risk. The Australian Industrial Relations System is very complex and often there are changes to legislation. We manage this risk for you. We keep up to date with changes and are generally much better at deciding how our clients can avoid risks when employing and managing people. 6. Having the right resource all year round. Your employees are entitled to 4 weeks annual leave and 10 days personal leave per annum and will soon be entitled to 10 days paid family and domestic violence leave. When staff are away, there may be no-one else to handover the responsibilities of HR. By outsourcing, this will never be an issue again. Essential HR have multiple experts who can work across any client. How can Essential HR help? As specialists in human resource management and industrial relations we assist Australian businesses navigate their way through the complexities around employing people. We deliver HR Partnering Services via a hybrid or virtual model. With a powerful combination of technology and expertise, we deliver efficiencies, compliance, pragmatic advice and solutions. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au.

The Fair Work Legislation Amendments (Secure Jobs, Better Pay) Bill 2022 ( Bill ) has passed both houses which will amend the Fair Work Act 2009 (Cth) (“Fair Work Act”) and change elements of Australia’s industrial relations system. In summary the key changes are: Prohibiting pay secrecy. Effective immediately “Pay secrecy” clauses in new employment contracts will be a civil offence. This means employees will be entitled to discuss with their work colleagues, if they choose to, their remuneration and conditions of their employment. Anti-discrimination From December 2022 , there are new protected attributes at work: breastfeeding gender identity intersex status. This means employers are prohibited from taking adverse action against current or future employees because of these attributes from this date. Job ads From 7 January 2023 , job advertisements (ads) cannot include pay rates that would breach the Fair Work Act, or a fair work instrument (such as an award or enterprise agreement). This means that job ads cannot include pay rates or workplace conditions that undercut employees’ minimum entitlements. Prohibiting workplace sexual harassment From 6 March 2023 , the Fair Work Act will prohibit sexual harassment in connection with work. The Commission will also have greater powers in relation to dealing with workplace sexual harassment. Flexible work From 6 June 2023 , the right to request flexible working arrangements will also apply to: employees, or a member of their immediate family or household, experiencing family and domestic violence employees who are pregnant. There will be new Employer obligations before they can refuse a request. Employers will have to: discuss the request with the employee make a genuine effort to find alternative arrangements to accommodate the employee’s circumstances consider the consequences of refusal for the employee provide a written response that includes: an explanation of the reasonable business grounds for refusing the request and how these grounds apply to the request other changes the employer is willing to make that would accommodate the employee’s circumstances or that says there aren’t any changes information about referring a dispute to the Fair Work Commission (the Commission). The Commission will be able to hear and make orders about disputes about flexible working arrangement requests if the parties cannot resolve the dispute in the workplace. Unpaid parental leave changes From 6 June 2023 there will be changes to how employers need to respond to requests for extending unpaid parental leave. These new requirements apply to requests for an extension of unpaid parental leave made. When an employee makes a request to extend their unpaid parental leave, the employer can: agree to the request, or discuss and agree with the employee to a different extension period. Fixed terms contracts From 6 December 2023 , employers can no longer employ an employee on a fixed term contract where: the term of the contract is greater than two years, the term of the contract and any other period for it can be extended or renewed is greater than two years, the contract provides for an option or right to extend or renew the contract more than once, There are some limited exceptions to these new provisions such as the employee is engaged in relation to a training arrangement. Employers will have to give employees they’re engaging on new fixed term contracts a Fixed Term Contract Information Statement. How can Essential HR help? As specialists in human resource management and industrial relations we assist Australian businesses navigate their way through the complexities around employing people. We deliver HR Partnering Services via a hybrid model. With a powerful combination of technology and expertise, we deliver efficiencies, compliance, pragmatic advice and solutions. To learn more how we can assist your workplace stay up-to-date and compliant by visiting our website at: www.esshr.com.au.

We have talked a lot recently about the impact that the last 2 years has had on recruitment and retention of staff. One of the biggest changes for many employers and employees when COVID hit, was the requirement to go into lockdown and work from home. This has now set new standards, expectations, and ways of working, not only in Australia but worldwide. A number of studies have shown that flexible working is now one of the top 3 factors that are important to candidates / employees, along with pay and career development opportunities. Therefore, it’s essential that employers address this to either retain their staff or attract new employees. It is true that some jobs tend to be more suitable to remote working, and certain roles in healthcare or the building industry are not conducive to remote working. However, adaptations of roles and technology have allowed even some aspects of these roles to be done remotely, such as Teachers and Fitness Instructors taking classes online, and Doctors offering telehealth consultations. What does flexible working really mean? There are a couple of variants on what flexible working really means, but predominantly it means the employee working outside their standard conditions of employment, such as working hours and/or working location. It is referred to in a number of ways: fully remote working, partially remote working / hybrid model (combination or remote and onsite) or simply, working from home (WFH). So why do employees want to work flexibly? There are a few reasons and benefits that employee’s desire these working arrangements. These include: Flexibility – Ability to do hours that suit them and set their own work/personal schedules. This can be particularity important for individuals who have caring responsibilities or are studying. Work life balance – Aspects such as not having to travel to work frees up time and the stress of driving in peak hour traffic, finding and paying for parking or using public transport. Also not being in an office means more opportunities to get outside during the day and have more time to enjoy life. More comfortable working environment – Being able to tailor your environment to your benefit or work preferences, such as playing music, choosing your physical furniture, setting up your desk that looks out to your garden / ocean or having less interruptions. Cost saving – Not paying for transport or parking, food, or coffee. What are the benefits for employers to support and encourage this? Studies have shown that employees are often more productive, with less mistakes, and of a higher quality when working from home. Studies have also shown that employees working remotely take less sick / personal leave. The employer also spends less on office fit outs and equipment. Job searching candidates have also commented that they would accept a lower salary to be offered a role with flexibility and the option to work remotely. What employers should consider Although working remotely has been requested and welcomed by most employees some people can struggle with feelings of isolation, disengagement, or balancing work with home responsibilities. As an employer it’s important to put measures in place to regularly engage with staff and support them when working remotely. Open and frequent communication is essential and can include things such as daily check-ins / meetings, arranging opportunities for online social interactions, and being clear on expectations and boundaries. Overall, as the world of work has and continues to change, along with the expectations of employees, it is important employers look at different ways of working to attract and retain the best talent and stay ahead of their competitors. Potential Changes to Flexible Working Arrangements In the upcoming IR changes under the Labor Government, the Fair Work Legislation Amendments (Secure Jobs, Better Pay) Bill 2022 was tabled on 27 October 2022 which set out 4 key changes. Although, “eligible” staff can currently request flexible working arrangements, and the employer can refuse based on various reasons, this may change in the future. The Bill proposes strengthening the right to request flexible work, including working from home. We will communicate more around when the Bill becomes law. How can Essential HR help? As specialists in human resource management and industrial relations we assist Australian businesses navigate their way through the complexities around employing people. We deliver HR Partnering Services via a hybrid model. With a powerful combination of technology and expertise, we deliver efficiencies, compliance, pragmatic advice and solutions. To learn more how we can assist your workplace visit our website at: www.esshr.com.au.

Many Employers have Fixed-Term Contracts in place to suit their operational needs for the short term. However, there is currently discussion within Government concerning fixed term contracts negatively impacting job security and wages . It is likely we will see changes that will impact legislation around fixed term contract arrangements in the upcoming IR changes under the Labor Government. In the second reading speech for the Fair Work Legislation Amendments (Secure Jobs, Better Pay) Bill 2022 ( Bill ), the Honourable Tony Burke, Minister for Employment and Workplace Relations (and Minister for the Arts and Leader of the House), identified that: the number of workers on fixed term contracts has increased by over 50% since 1998, more than half of all employees engaged on fixed term contracts are women, and more than 40% of fixed term employees have been with their employer for two or more years. The new Bill is designed to limit the use of fixed term contracts for the same role beyond two years or two consecutive contracts (whichever is shorter, including renewals). The Bill also includes provisions for maximum term contracts (ie one that has an identifiable end date but contains terms that provide for it to be terminated before the end date.) The provisions of the Bill will have some exceptions to certain rules and are listed below. We will continue to provide information on these changes as it becomes available and should they become law. Here are some provisions in the Bill around fixed term contracts: 1. An employer will be in breach of the new provisions for fixed term contracts if: the term of the contract is greater than two years; the term of the contract and any other period for it can be extended or renewed is greater than two years; the contract provides for an option or right to extend or renew the contract more than once. 2. There are some limited exceptions to these new provisions, including: the employee is engaged to perform only a distinct and identifiable task involving specialised skills; the employee is engaged in relation to a training arranment; the employee is engaged to undertake essential work during a peak demand period; the employee is engaged to undertake work during emergency circumstances or during a temporary absence of another employee; in the year the contract is entered into the employee earns more than the high-income threshold (currently $162,000) for that year. How can Essential HR help? If you have any queries or wish to review your current employment contracts, we have a wealth of expertise in this area and can assist you in effectively managing the employee and employer relationship. As specialists in human resource management and industrial relations we assist Australian businesses navigate their way through the complexities around employing people. To learn more how we can assist your workplace visit our website at: www.esshr.com.au.

Employees will soon be able to access 10 days of paid family and domestic violence leave in a 12-month period. From 1 February 2023 full-time, part-time, and casual employees who work for a business with 15 or more employees will be able to access 10 days of paid family and domestic violence leave in a 12-month period. From 1 August 2023 full-time, part-time, and casual employees who work for a business with less than 15 employees will be able to access 10 days of paid family and domestic violence leave in a 12-month period. Employees will access the 10 days leave entitlement up front; however, it will not accumulate from year to year if not used. Part-time and casuals will be entitled to 10 days (i.e. it is not prorated) Employees will continue to be entitled to 5 days of unpaid family and domestic violence leave until they can access the new paid entitlement. This leave will renew each year on the employee’s work anniversary. Employees who are already employed when the paid leave entitlement commences can access the full 10 days on the relevant start date (i.e. either 1/2/2023 or 1/8/2023). The leave then renews on the anniversary of when they commenced employment for that employer and renew each year on their anniversary date. When can an employee take family & domestic violence leave? Employees can take paid family and domestic violence leave if they need to do something to deal with the impact of family and domestic violence. For example: making arrangements for their safety, or the safety of a close relative (including relocation) attending court hearings accessing police services attending counselling attending appointments with medical, financial or legal professionals. What does an employee get paid who takes family & domestic violence leave? Full-time and part-time employees can take paid family and domestic violence leave at their full pay rate for the hours they would have worked if they weren't on leave. Casual employees will be paid at their full pay rate for the hours they were rostered to work in the period they took leave. An employee's full pay rate is their base rate plus any: incentive-based payments and bonuses loadings monetary allowances overtime or penalty rates any other separately identifiable amounts. Updating your Leave Policy It is recommended you update your current Leave Policy & Procedures ready to be issued either 1 February or 1 August. You may also want to communicate this change to your employees. How can Essential HR help? As specialists in human resource management and industrial relations we assist Australian businesses navigate their way through the complexities around employing people. We deliver HR Advice and Support via a hybrid model that includes writing and implementing up-to-date and compliant HR policies and procedures. To learn more how we can assist your workplace visit our website at: www.esshr.com.au.

Landmark changes to paid parental leave policies are in the works. Here’s what that means for HR. Written by Harshini Elliott, Essential HR In yesterday’s budget meeting, the Albanese Government announced plans to extend paid parental leave from 20 weeks to 26 weeks by the year 2026. Extra leave will be staggered, with an extra fortnight of paid leave added each year from July 2024 until 2026. Therefore, an additional six weeks will be added to Australia’s PPL scheme, giving parents a total f 6 months of total leave payable. The new policy won’t restrict which parent can use the leave or the duration they can take within the 26 weeks. As part of the new scheme, single parents will also be able to access the full 26 weeks. The leave can also be taken flexibly (i.e. one day at a time with periods of work in between) to allow for a slow transition back to work for parents or to give secondary parents the opportunity to work reduced hours during those crucial first months of a child’s life. This is the biggest boost to Australia’s paid parental leave scheme since it was first introduced by the Labor government in 2011. Prime Minister Anthony Albanese said the policy change would support 'modern' families and provide them with greater choice. "We know that investing in parental leave benefits our economy," he said. "It is good for productivity and participation, it's good for families and it's good for our country as a whole." Before this announcement, Australian parents could only access 20 weeks of Commonwealth-funded parental leave. Eighteen of them were allocated to the ‘primary carer’ and the remaining two were allocated to the ‘secondary carer’. The current system has many implications, especially when it comes to entrenching traditional gender roles, says Dr Leonora Risse, Senior Lecturer in Economics at RMIT University who specialises in gender equality. “In offering a more generous amount of leave allocation for fathers or partners, it will make caregiving less one-sided, meaning we’re fostering more gender equity at home. “This matters because we know that if more fathers are involved in parental leave, that is a boost for women’s full-time labour force participation. That’s going to help support women’s economic security over the longer term.” The proposed new scheme will now go to the Women’s Economic Equality Taskforce, chaired by Sam Mostyn AO, for further assessment. The taskforce will examine how a ‘use it or lose it’ structure would work and the amount of leave both parents can access at the same time. You can read the official fact sheet here: Budget October 2022-23 - Expanding Paid Parental Leave If you would like support in updating your parental leave policy to align with the new Government changes, please reach out to the team at Essential HR. About Essential HR Essential HR specialise in human resource management and industrial relations helping Australian businesses navigate their way through the complexities around employing people. With a powerful combination of technology and expertise, we will deliver efficiencies, compliance, pragmatic advice and solutions you never thought possible. Get in touch today: hr@esshr.com.au

Creating a culturally diverse and inclusive workplace. Written by Harshini Elliott, Senior HR Partner Australia continues to become a more culturally diverse country. As a result, employers need to be aware that when it comes to Public Holidays , not all employees celebrate holidays such as Easter and Christmas and not everyone wants a day off for the Queen’s Birthday. To achieve a culturally diverse and inclusive workplace, employers must recognise that flexibility and inclusivity go hand in hand. Understanding this from a leadership point of view and then developing policies to accommodate and support this are crucial in achieving diversity and inclusivity in the workplace. So, if we look at public holidays, how can organisations provide better leave options for public holidays for all employees? First of all, you will need to develop a policy around this to ensure the organisations position is clear to all employees. However, there are things you need to consider when implementing a policy which supports this. Is the employee covered by an award or legislative instrument? Most awards have significant wage penalties attached to working public holidays, so it is crucial to consider any financial impact on the organisation and employee. In the absence of an award, you will need to refer to your organisational policy or the Fair Work Act to determine if the request is reasonable. Also keep in mind that you don't inadvertently discriminate against individual or groups of employees. Some general principles to consider when developing your policy are: Can the business operationally support this? How will this request be tracked? How will the information be shared with payroll? What document do you need in place for this to work? This information needs to be stipulated in the policy. Is there meaningful work for the employee to do? Assuming most people won’t be working on the public holiday, does the employee need supervision while working the public holiday? Is there enough work for them to do that is meaningful? Guidelines around what work will be performed on these days could be added into the policy. Has the employee provided sufficient notice? The policy will need to stipulate the notice period to work/swap a public holiday, so the organisation has the time to prepare for this. Eg, if supervision is required Is your policy equitable and fair for all employees? Ensure your policy does not adversely affect individuals or groups of employees and that all employees have the option to participate in swapping out Public Holidays. If the above points can be satisfied then allowing an employee who does not want to celebrate Australia Day (for example), and instead wants to choose a more culturally significant day it is a great way to show employees your support when it comes to diversity and inclusivity. About Essential HR Essential HR specialise in human resource management and industrial relations helping Australian businesses navigate their way through the complexities around employing people. With a powerful combination of technology and expertise, we will deliver efficiencies, compliance, pragmatic advice and solutions you never thought possible. Get in touch today: hr@esshr.com.au

Whether we are a leader, manager or co-worker, there will always be a time in our career where we need to have a challenging conversation. Difficult conversations may be out of our comfort zone, we worry it might cause conflict, we don’t have the time, we worry how the recipient will respond, or we worry it could cause further tension. While these are all viable concerns, the reality is not having the conversation could potentially lead to a far worse situation. Therefore, it is always better to be able to have the difficult conversation to mitigate risk and prevent issues from blowing up later. Difficult conversations should become part of your workplace culture. They should not be scary or stressful for the recipient or for you delivering the conversation. For this to occur you need to ensure you have the skills and techniques to hold these difficult conversations. Below are 5 important skills and techniques to guide you through those difficult conversations: 1. Be Prepared It is vital you are going into the meeting 200% prepared. The better prepared you are, the more confident you will be in having the conversation. It will also be less likely you forget anything during the conversation. This may be in the form of a checklist listing everything you want to discuss, starter sentences or something more detailed like a script of what you want to say. Whatever works for you ensure you go over it and understand it prior to the meeting. 2. Understand your Environment It is important for difficult conversations to be conducted in the right setting. Ensure you book a room that is quiet and away from other people (avoid gossip!). Will the meeting get heated? Will the recipient get upset? Will the recipient walk out of the meeting? You need to ensure the environment is right to hold such a meeting. 3. Understanding your Emotional Triggers When we are in strong disagreement or severe conflict with someone, it is almost impossible not to react emotionally. In addition to being prepared, you need to go into the meeting understanding your emotional triggers. What might set you off. What could the recipient say to upset you? It is important to gain an understanding of these so you can respond accordingly and professionally during the meeting. 4. Be Empathetic While empathy is the ability to see the world through the eyes of another, true empathy is much more. A highly empathetic person senses the emotions of those around them and has the ability to tap into those same emotions within themselves. When you are having a difficult conversation, it is important to try and reflect on what the recipient may be experiencing. Are they anxious about the meeting? Are they worried about losing their job? Do they have personal issues affecting them? Whether the employee is not performing the requirements of the role, has performed suspected misconduct or is simply being rebellious, you still need to enter the meeting with empathy towards them. A difficult conversation is hard for everyone including the recipient. The above are only a few examples of techniques to help you hold these important conversations. To learn more techniques and how to utilise them in holding difficult conversations, attend Essential HR’s Navigating Difficult Conversation workshop . To learn more or make an enquiry click: https://www.esshr.com.au/navigating-difficult-conversations

We all want our employees to feel welcome, safe, and happy when they come to work. In an ideal world everyone would get along perfectly and there would never be any drama within your team. But that is of course not the reality. Bullying doesn’t just occur at school or in the playground, it can happen and does happen all-too-often in the workplace. While harassment and bullying at the workplace can have many different forms, it’s usually considered to be an instance in which someone is using power or intimidation to hurt someone else. Sometimes the behaviour is not intentional, but often it is. And that’s why you need to take a stand against bullying and take steps to prevent both bullying and harassment in the workplace. Workplace bullying and harassment can have serious negative effects on employee’s mental, emotional, and even physical health. It can lead to feelings of low self-worth, depression, anxiety, and even headaches in the person being bullied. For you as an employer, the cost of bullying can come in the form of low productivity and lawsuits if the behaviour is ignored or “swept under the carpet”. There are other effects that are far-reaching and can seriously hurt your business. Essential HR can support you, your managers and your employees to understand what workplace bullying and harassment is and explore opportunities to eliminate, prevent and manage this in your business. We run inhouse or offsite training & workshops. Should you like to learn more or make an enquiry please click here: https://www.esshr.com.au/workplace-bullying

Written by Justine Pepper, Director, Essential HR Traditionally, organisations have relied on annual performance reviews to evaluate performance outcomes and provide employee’s feedback. Although, conducting performance reviews are important, conducting them in solo, either annually or twice a year is simply not enough today to get the results you hope for. If your performance management system only consists of an annual or twice-yearly performance review, chances are you are eroding an employee’s potential performance and risking high staff turnover. With the start of a new financial year, now is a great time to re-visit your performance management system and look at moving to an “everyday performance management” approach. Not only will you increase employee engagement, but you will also take the pressure off your managers who spend countless hours preparing for and conducting annual performance reviews. Discover What is performance management? Understanding the impact of “solo” annual performance reviews What does an everyday performance management system look like? What are the 5 benefits of an everyday performance management system What is performance management? Performance management is an ongoing process of communication between a manager and an employee that occurs all year-round. Interactions focus on the development of employees and the alignment of company goals and objectives. Its purpose is to create a working environment that enables both employees and the company to thrive. If done right, on a consistent and regular basis, an organisation will build a positive, performance focused culture. Understanding the impact of “solo” annual performance reviews In my 30 years working in Human Resources, I have seen and been a part of performance reviews focused on the annual review process. Often the outcome of the annual performance review determines whether an employee is worthy of receiving a salary increase and/or incentive payment. This approach undermines its true purpose and limits its effectiveness. Here are 2 reasons “solo” annual performance reviews are ineffective: 1. Managers may view them as a burden and timely process Managers are often held accountable to conduct annual performance reviews with their staff. Majority don’t look forward to them and question how they will achieve them on top of their already busy workload. Some may have anxiety around giving feedback, whilst others may see it as an opportunity to discuss issues and concerns that have built up over a 6 to 12 month period. Either scenario will result in an unproductive and negative experience for both the manager and employee. 2. Employees may be skeptical or disengaged in the process Employees are expected to self-evaluate via a series of questions or comments and ratings against KPI’s. They too may not look forward to meeting with their manager and receiving feedback. They may feel anxious as they do not know what to expect and what will be discussed. Where an employee feels the review is not genuine, fair, timely and focused on their growth and development they will be demotivated and disengaged, and we all know where that leads! What does an everyday performance management system look like? It’s not all doom and gloom. The good news is you do not need to bin your current performance management system and create a new one. You may just need to tweak it. Here are 4 recommendations to create an “all-year-round Performance Management” approach: 1. Implement a monthly 1:1 coaching/feedback program We use this in our business and encourage our clients to do the same. As an implementation partner of Employment Hero (HR Platform) we utilise the online module, Coaching - 1:1 meetings. It is easy to set up on a schedule, so reminders go out automatically. We ask the employee to answer 5 questions before we meet, and each meeting takes no longer than 30 minutes. 2. Create a questionnaire that consists of 5 questions only The five questions below will assist in keeping the discussion on track and provides an “agenda” of what to discuss. The employee answers the questions before the meeting allowing the manager to prepare. 5 questions I recommend are: What would you put your Job Satisfaction Score at between 0-10? What successes have you had in the past month or things you are proud of? What hurdles or barriers are you experiencing and what can I do to help you overcome them? How do you feel about your goals for this month? Are there areas you need further development in to help you achieve them? What can I start doing, stop doing or continue doing? 3. Dedicate time each month allowing 30 minutes for each team member. Important : Try not to cancel these meetings. If you need to cancel make sure you immediately book another time. In my experience staff enjoy 1:1’s and look forward to discussing their achievements, challenges, and development. Make sure you follow through on 1:1 outcomes, insert your notes (dot form is fine) on what was discussed and agreed and provide a copy to your team member. 4. Simplify the annual review process I have seen some pretty complicated performance plans detailing complex Key Result Areas (KRA) and Key Performance Indicators (KPI’s) or measures over my career and understand why employees and managers find the process so daunting. Some review meetings have lasted for 2 hours per employee and then another hour or two to write up notes and finalise the review document. All this work, yet often the review outcomes are unsatisfactory for both the reviewer and reviewee. Annual reviews tend to only capture the last month or two, are time consuming and ineffective. They miss any opportunity to give feedback and recognition that is timely and on target. Conducting 1:1 meetings monthly allow the achievement of KPI’s to be tracked on an ongoing basis. The manager and employee can work together to promptly find solutions, communicate changes, address issues and identify development opportunities. The annual review should be a collection of the 1:1’s throughout the year. Preparation for the annual review, such as collecting data around achievements, outcomes, and issues, should already be done. The review discussion should be a quick summary of past performance, reinforcing achievements and issues over the year. The discussion should then focus of the future. For example, new goals or targets, new challenges, new development and career opportunities. What are the 5 benefits of an everyday performance management system More than ever managing people effectively has become so important. Finding talent in the current labour market has become near impossible. Therefore, I cannot stress enough to nurture the team you have. Benefits in shifting to an “everyday performance management” approach are: 1. Improved employee engagement Consistent feedback and coaching from managers lead directly to increased engagement from employees while developing the ability of managers to provide effective coaching and feedback skills. 2. Retain talent Employees who feel that their company is invested in their success stay with their employer, increasing employee retention. 3. Develop leaders within This consistent development and partnership between managers and employees allow for the development of leaders from within the company. This leadership path also serves as a motivating force for employees, who can see that their hard work will be rewarded with promotions and other benefits. 4. Increase in productivity Clear expectations and roles set employees up for achieving goals from the start. Productivity will increase thanks to increased engagement, clear goals and upskilling of employees. 5. Reduction in absenteeism A happy engaged workforce leads to a reduction in sick leave, workplace injuries and staff turnover. About Essential HR As human resource and industrial relation specialist our talented team of HR professionals’ partner with businesses to advise, guide and support them in all HR matters. We combine workplace industry expertise with technology to deliver tailored, practical and efficient services to help organisations be compliant, productive and successful. Visit www.esshr.com.au or contact Justine Pepper directly at E: justine.pepper@esshr.com.au or M: 0419 568 899.

If you are finding it difficult to attract the talent your business requires in these pandemic times, you are definitely not alone. . Business owners in all types of industries, especially service industries such as hospitality, tourism, and retail, are tearing their hair out at the lack of suitable job applicants. And the worrying thing is that this situation doesn’t look like improving anytime soon. The reasons behind this frustrating and often debilitating lack of suitable talent are many and varied. A newly developed taste for working at home and the advantages that brings, a reluctance to work in industries most impacted by lock downs and a fear of face-to-face customer interactions, are all part of the cause. The effect of course, is to severely reduce a business’s ability to regrow back to a situation of stability and sustainability. Understanding the problem is one thing however but doing something about it is another. The good news is that there are a number of ways to help attract and acquire the best talent, to help grow your business. Here are 10 Ideas for Attracting the Best Talent Before you fire out a job ad, think about alternative strategies such as recruiting from within. Is there someone in your team that is showing potential and may, with the right training, be able to step up and perform the role you have in mind? If external recruitment is your only choice, then consider widening your net before you cast it. Consider people from outside your industry with skills that may be transferable with some training and mentoring. Don’t discount older applicants. Mature age people often have a wealth of knowledge to tap into and can bring passion to a job they see as being everything they desire, rather than just a stepping stone towards something better. Review your position description to ensure that it has the ability to generate excitement. Make sure that it reflects many of the needs quality applicants seek in a job, such as flexibility, autonomy, teamwork and growth developing challenges. When crafting your job ad, make sure that the most attractive elements of the position description are highlighted. Ensure that your employer brand reflects attractive values such as genuine care for individuals and teamwork. Money is still and probably always will be a key motivator, so make sure that your financial rewards are competitive. It’s not all about the base salary, as sweeteners such as bonuses, increased holiday leave, increased sick leave (for COVID recovery time), birthday holidays, mental health days, gym membership discounts etc., can all help. Even though money is a key consideration for job applicants, other factors are becoming increasingly important. For example, mental health and wellbeing is a key employment related issue, so initiatives such as the encouragement of breaks and exercise during working hours, may be well received. Be as flexible as possible up front with regard to working hours. A great candidate may only be able to work in the office during school hours or may only wish to work 2-3 days a week. If you need someone full time, then two people working in tandem as a team, may represent a workable option. When the employment market is competitive and quality candidates few and far between, it’s important to stand out from the competition. This means reviewing competitive job offers to see where you could do better in attracting the right people. Don’t feel that you’re all alone in your attempt to attract the best talent. Talk to other employers regarding successful strategies or an external HR consultancy who can help you create and execute a more effective approach to recruitment. For further information call Justine on 0419 568 899 or email justine.pepper@esshr.com.au

On Friday 26 March 2021, the Fair Work Act 2009 (FW Act) was amended to change workplace rights and obligations for casual employees. The changes were made by the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Act 2021 (Amendment Act). What does this mean for you? While not as significant as first anticipated, the casual employee amendments will impact employers particularly in relation to casual employee engagement, casual employment contracts and processes relating to casual conversion. The Amendment Act introduces a: · Casual Employment Information Statement; · Definition of casual employment; and · Pathway for casual employees to move to full-time or part-time (permanent) employment. Casual Employment Information Statement (CEIS) In addition to the Fair Work Information Statement which must be given to every new employee, casual employees must also be given a copy of the Casual Employment Information Statement upon commencement or soon after. Small business employers (fewer than 15 employees) must give their existing casual employees a copy of the CEIS as soon as possible. Other employers (15 or greater employees) must give their existing casual employees a copy of the CEIS as soon as possible before 27 September 2021. This can be effectively managed using the Employment Hero platform, or alternatively a bulk ‘BCC’ e-mail to all casual employees. For current HR Partner clients, PeopleVision will action this task on your behalf. New casual will receive a Casual Employment Information Statement when onboarding in Employment Hero. Definition of Casual Employment Under the new definition, a person is a casual employee if they accept a job offer from an employer knowing that there is no firm advance commitment to ongoing work with an agreed pattern of work. Tribunals and courts will now look at the offer of employment to determine whether an employee is casual. The employment contract will give numerous indications as to whether the employer makes no firm advance commitment to continuing and indefinite employment. When determining whether or not an employee is a casual must be done at the time an offer is made. There are various considerations that must be regarded: · Whether the employer makes a firm advance commitment that the work will continue ongoing with an agreed pattern of work; · Whether the employer can elect to offer work and whether the person can elect to accept or reject that work; · Whether the person will work as required according to the employer needs; · Whether the employment is described as casual; and · Whether the person is entitled to casual loading. Casual Employment Contracts Casual employment contracts must be reviewed to ensure they satisfy the new statutory definition of a casual employee. This includes ensuring that existing casual contracts are amended or replaced as the changes to the Fair Work Act will apply retrospectively. It is essential that the casual contract of employment indicates sufficiently that the employment is casual, providing a clause outlining that the employee may accept or reject shifts within a certain timeframe and specifically detailing the additional casual loading. For current HR Partner clients, PeopleVision will liaise with Employment Hero to ensure the casual contract templates capture these changes. Casual Conversion (Pathway to Part-Time or Full-Time) Small businesses (fewer than 15 employees) do not have to offer their casual employees to convert to full-time or part-time (permanent). However, the casual employees can make a request if they meet the requirements. Other employers (15 or greater employees) must offer their casual employees to convert to full-time or part-time (permanent) when the employees meet the requirements. Requirements are if the casual employee: · Has worked for their employer for 12 months; · Has worked a regular pattern of hours for at least the last 6 of those months on an ongoing basis; and · Could continue working those hours as a permanent employee without significant changes. Exceptions and rules do apply, including if an employer has ‘reasonable grounds’ not to make an offer to a casual employee for casual conversion. If this applies, it must be advised in writing. It is crucial that employers have an organised process in place to ensure they comply with the new obligations. If an employer forgets and the employee would otherwise have been eligible, the employer will essentially breach a National Employment Standard which could lead to penalties. Double Dipping Employers no longer have to stress about the “double dipping” consequences if a casual employee is found not to be a casual employee. Employers are protected from providing backpay relating to leave entitlements which the employee would have been entitled to if not classified as casual. If the Court does find a casual employee (employed as casual and received 25% casual loading) is not actually a casual employee, the Court must reduce any amount payable to the employee for the relevant entitlements (sick leave, annual leave etc.) by an amount equal to the loading amount. In short, what do we need to do now? 1. Issue a copy of the Casual Employment Information Statement to all existing casual employees; 2. Ensure new casual employees receive a copy of the Casual Employment Information Statement; 3. Review and update all casual employment contract templates and in addition, re-issue new contracts to all existing casual employees; 4. Establish processes to ensure compliance with the new casual conversation obligations and in addition, do an immediate review of existing casual employees. PeopleVision will liaise with all HR Partner clients to ensure compliance is achieved. Meanwhile, should you have any queries please contact me or Brett Size. Brett can be contact on 0412 303 170 or brett.size@peoplevision.com.au

From the first full pay period on or after 1 February 2021, new minimum rates and allowances start in awards for the Accommodation and Food Services, Arts and Recreation Services, Aviation, Retail and Tourism industries. Following on from Group 1 Awards increasing from 1 July 2020 and Group 2 Awards increasing 1 November 2020, Group 3 Awards increase from the first full pay period starting on or after 1February 2021. Below is a list of Awards affected: Air Pilots Award Aircraft Cabin Crew Award Airline Operations-Ground Staff Award Airport Employees Award Alpine Resorts Award Amusement, Events and Recreation Award Commercial Sales Award Dry Cleaning and Laundry Industry Award Fast Food Industry Award Fitness Industry Award General Retail Industry Award Hair and Beauty Industry Award Horse and Greyhound Training Award Hospitality Industry (General) Award Live Performance Award Mannequins and Models Award Marine Tourism and Charter Vessels Award Nursery Award Professional Diving Industry (Recreational) Award Racing Clubs Events Award Racing Industry Ground Maintenance Award Registered and Licensed Clubs Award Restaurant Industry Award Sporting Organisations Award Travelling Shows Award Vehicle Repair, Services and Retail Award Wine Industry Award This is the final Group of Award increases as a result of the 2020 Award rate review. HOW CAN WE HELP? Essential HR specialise in human resource management and industrial relations helping small to medium sized businesses navigate their way through the complexities around employing people. With a powerful combination of technology and expertise, we will deliver efficiencies, compliance and forward thinking to your business that you never thought possible. Click here for further information or contact me directly at justine@esshr.com.au

If you’re like most business owners and managers, you probably wear many hats and are responsible for many areas of your business. You’re the CEO, bean counter, marketing whiz, sales guru, lead developer, and more. So you’ve typically got your hands full developing growth strategies, optimising the cash flow, managing customer relationships, product and service innovation, not to mention the human side of running your business. At any one time, you may be trying to effectively on board new hires into your business, figure out the best way to develop a stellar employee, while you performance manage another. Of course, when things get really busy, you tend to concentrate on the things you like to do rather than prioritise the things that need to be done. So while you’re masterminding your latest marketing campaign, you certainly wouldn’t be the first business owner to put HR compliance in the too hard basket. But it still needs to be done. And the problem is, the longer you leave it, the more painful it is, especially when you get it wrong. Here are 7 common HR mistakes you need to fix right now.

1. National Employment Standards (NES) & Awards
With Australia’s complex employment laws, modern awards and agreements, underpayment of wages is alarmingly widespread. And apprentices and trainees are particularly vulnerable to being underpaid at work. But make no mistake, underpaying employees (even inadvertently) attracts big fines and back pay claims.

2. Employment contracts
You can find yourself in all sorts of trouble if you don’t record an employee’s terms and conditions when you hire them. Employment contracts written in plain English help you minimise costly and time consuming disputes by providing certainty about the legal rights and obligations of both you and your staff.

3. Independent contractors
For employers, hiring contractors is not just about the lower overheads, it’s the ability to adapt quickly to changing demands. However, while contractors run their own business and provide services to your business, you can’t classify a worker as a contractor simply because they have an ABN and they offer specialist skills. Furthermore, having a worker sign an agreement that states they are not an employee does not necessarily make them so.

4. Workplace safety
It doesn’t matter what your business does, or how low risk it is, as a business owner you have legal responsibilities to provide a safe place of work for your employees, contractors, volunteers, visitors, customers or the public. Though it may cost to implement safe practices and install safety equipment, the effect of not taking action can be costlier still.

5. Workplace policies
It’s one thing to create sound workplace policies, and quite another to actually enforce them. But your policies are only effective if they are uniformly enforced and properly communicated to your employees. Plus, you need to regularly audit your workplace policies to ensure they are up to date with relevant laws and other internal policies and procedures.

6. Performance management
While you may have a valid reason to dismiss an underperforming member of your staff, if you don’t follow due process, you’ll end facing and potentially losing an unfair dismissal claim. Procedural fairness is absolutely critical to how Fair Work Australia decides an unfair dismissal cases. If you fail to show you have applied procedural fairness before you dismiss an employee, it will usually result in a finding that the dismissal was unfair.


7. HR automation
If you’re still relying on an individual in your business to process your payroll and manage HR tasks, it’s only a matter of time until you come unstuck. HR automation can help you save time and money by streamlining business processes, and making your business more efficient, which in turn helps to improve profitability. And without an HR system in place, how can you be sure you’ll put your hands on the right HR records and documentation when you really need them?

Fix it now

Remember, HR compliance isn’t just for the big end of town. And while you may have pushed it to the bottom on your to-do list, as a small/medium business owner, it’s time to step up and fully understand what you need to do to get on top of your HR tasks and processes before things go awry.

Here at Essential HR, we live and breathe HR – it’s what we are experts in. We can quickly have you up and running, and compliant with your HR needs quickly and efficiently.

Want to know more. Visit www.esshr.com.au and get in touch with us for a free 1:1 consult.

From the first full pay period on or after 1 November 2020, new minimum rates and allowances start in awards for the construction, manufacturing and a range of other industries. Following on from Group 1 Awards increasing from 1 July 2020, Group 2 Awards increase from the first full pay period starting on or after 1 November 2020. Below is a list of Awards affected: Aluminium Industry Award Animal Care and Veterinary Services Award Aquaculture Industry Award Architects Award Asphalt Industry Award Black Coal Mining Industry Award Book Industry Award Broadcasting, Recorded Entertainment and Cinemas Award Building and Construction General On-site Award Business Equipment Award Car Parking Award Cement, Lime and Quarrying Award Clerks—Private Sector Award Coal Export Terminals Award Concrete Products Award Contract Call Centres Award Cotton Ginning Award Dredging Industry Award Educational Services (Post-Secondary Education) Award Electrical, Electronic and Communications Contracting Award Food, Beverage and Tobacco Manufacturing Award Gardening and Landscaping Services Award Graphic Arts, Printing and Publishing Award Higher Education Industry-Academic Staff-Award Higher Education Industry-General Staff-Award Horticulture Award Hydrocarbons Field Geologists Award Hydrocarbons Industry (Upstream) Award Joinery and Building Trades Award Journalists Published Media Award Labour Market Assistance Industry Award Legal Services Award Local Government Industry Award Manufacturing and Associated Industries and Occupations Award Marine Towage Award Maritime Offshore Oil and Gas Award Market and Social Research Award Meat Industry Award Mining Industry Award Miscellaneous Award Mobile Crane Hiring Award Oil Refining and Manufacturing Award Passenger Vehicle Transportation Award Pastoral Award Pest Control Industry Award Pharmaceutical Industry Award Plumbing and Fire Sprinklers Award Port Authorities Award Ports, Harbours and Enclosed Water Vessels Award Poultry Processing Award Premixed Concrete Award Professional Diving Industry (Industrial) Award Professional Employees Award Rail Industry Award Real Estate Industry Award Road Transport (Long Distance Operations) Award Road Transport and Distribution Award Salt Industry Award Seafood Processing Award Seagoing Industry Award Security Services Award Silviculture Award Stevedoring Industry Award Storage Services and Wholesale Award Sugar Industry Award Supported Employment Services Award Surveying Award Telecommunications Services Award Textile, Clothing, Footwear and Associated Industries Award Timber Industry Award Transport (Cash in Transit) Award Waste Management Award Wool Storage, Sampling and Testing Award HOW CAN WE HELP? Essential HR specialise in human resource management and industrial relations helping small to medium sized businesses navigate their way through the complexities around employing people. With a powerful combination of technology and expertise, we will deliver efficiencies, compliance and forward thinking to your business that you never thought possible. Click here for further information or contact me directly at justine@esshr.com.au

JobKeeper 2.0 eligibility and amount of subsidy Changes to the Fair Work Act – Qualifying Employers From 28 September 2020, employers who remain eligible for JK 2.0 (referred to as Qualifying employers) can no longer request employees to take annual leave – usual rules in modern awards, enterprise agreements and the Fair Work Act will apply. All other JK Direction powers continue to exist. JobKeeper enabling stand down directions Qualifying employers can give eligible employees a direction to reduce their hours or days of work, including to work no hours in certain circumstances. These directions are referred to as a JobKeeper enabling stand down direction. Examples are: Not work on one or more days that they usually work Work for a shorter period than the employee usually works on a particular day or days Work less hours overall than the employee usually works Not work any hours at all. If a JobKeeper enabling stand down direction applies to an employee, the employee has to comply with it. When an employer can give a direction A qualifying employer can give an eligible employee a JobKeeper enabling stand down direction if: The employee can’t be usefully employed for their normal days or hours because of business changes attributable to: government initiatives to slow coronavirus transmission (such as an enforceable government direction); the coronavirus pandemic, or the employer meets the requirements for the direction, such as the direction being reasonable. How to give a direction To give a direction qualifying employer need to: Notify the employee in writing at least 3 days before giving the JobKeeper enabling stand down direction. This applies unless the employee genuinely agrees to a shorter timeframe. Consult with the employee (or their representative) about the direction and keep a written record of the consultation. Give the employee the direction in writing. When a direction is in place, it doesn't apply: When an employee is taking authorised paid or unpaid leave (such as annual leave or long service leave), or During any time the Fair Work Act says the employee is entitled to be absent from work (as opposed to taking leave), for example on a public holiday. Changes to the Fair Work Act – Legacy Employers Employers who are no longer eligible for JK 2.0 (“legacy employers”) can only use (more reduced) Fair Work Act flexibilities if they meet a 10% decline in turnover test and obtain a “10% Decline in Turnover Certificate” prior to each period. Legacy employers can give JK Directions to: Reduce employees’ hours, but the hours cannot be reduced to less than 60% of the employee’s ordinary hours as of 1 March 2020 and employees must work at least two consecutive hours per shift Change the duties of employees Change the location where the employees perform their work To give a direction legacy employer need to: Notify the employee in writing at least 7 days before giving the JobKeeper enabling stand down direction. Consult with the employee (or their representative) about the direction and keep a written record of the consultation. Give the employee the direction in writing. HOW CAN WE HELP?
Essential HR in partnership with Employment Innovations are leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium-sized employer needs – including workplace advice, legal services, outsourcing payroll, payroll software, human resource management & HR software. Click here for further information or contact me directly at justine.pepper@employmentinnovations.com

In August 2019 the Full Federal Court of Australia determined that personal/carer’s leave was calculated in working days, not hours. That decision was overturned on 13 August 2020. The High court has clarified that: the entitlement to 10 days of personal/carer’s leave under the National Employment Standards (NES) is calculated based on an employee’s ordinary hours of work, not working days 10 days of personal/carer’s leave can be calculated as 1/26 of an employee’s ordinary hours of work in a year. This has now been reflected in the Fair Work Information Statement HOW CAN WE HELP?
Essential HR in partnership with Employment Innovations are leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium-sized employer needs – including workplace advice, legal services, outsourcing payroll, payroll software, human resource management & HR software. Click here for further information or contact me directly at justine.pepper@employmentinnovations.com

With the continued impact of COVID-19 on workplaces, the Fair Work Commission has announced the decision to extend in a number of modern awards the temporary Award Flexibility provisions and unpaid pandemic leave (Schedule X). The extension of the temporary Award Flexibility provisions affect the below modern awards: Restaurant Award Clerks Award Hospitality Award Vehicle Award Fast Food Award Education (General Staff) Award For full details go to the Fair Work Ombudsman’s website . The extended unpaid pandemic leave (Schedule X) effects some awards. There are different end dates for Schedule X so please ensure you check your Award. You can see a full list of Awards with unpaid pandemic leave and their new end dates by going to the Fair Work Ombudsman's website. HOW CAN WE HELP? Essential HR in partnership with Employment Innovations are leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium-sized employer needs – including workplace advice, legal services, outsourcing payroll, payroll software, human resource management & HR software. Click here for further information or contact me directly at justine.pepper@employmentinnovations.com

Today the Fair Work Commission announced a 1.75% increase to minimum awards wages. For anyone not covered by an award or an agreement, the new national minimum wage (NMW) will be $753.80 per week or $19.84 per hour. Unlike previous years, not all award increases will be effective the first full pay period starting on or after 1 July 2020. Instead, awards will start on 3 different dates for different groups of awards. The 3 groups are: Group 1 Awards - from 1 July 2020 Frontline Heath Care & Social Assistance Workers Teachers and Child Care Other Essential Services Group 2 Awards - from 1 November 2020 Construction Manufacturing A range of other industries Group 3 Awards - from 1 February 2021 Accommodation and Food Services Arts and Recreation Services Aviation Retail Tourism HOW CAN WE HELP? Essential HR in partnership with Employment Innovations are leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium-sized employer needs – including workplace advice, legal services, outsourcing payroll, payroll software, human resource management & HR software. Click here for further information or contact me directly at justine.pepper@employmentinnovations.com

Workplace legislation is complex and for ever changing. Over the last few months we have seen temporary changes to Modern Awards to accommodate the effects of COVID 19 in the workplace. For as little as $250 per month you can have access to unlimited workplace advice, HR templates and representation in the event of any complex workplace claim, without further legal costs. We will also carry out a compliance audit for you. Ease the HR headache and let us support you. For further information click here or contact me directly at justine.pepper@employmentinnovations.com

The Fair Work Commission recently announced temporary changes to the Fast Food Industry Award 2010 to allow for more flexibility for employers during COVID-19. The changes include new provisions for part-time employees and annual leave arrangements. These amendments are effective from the employee’s first full pay period on or after 19 May 2020 until 31 July 2020. These changes apply to employers under the Fast Food Award who do not qualify for JobKeeper and employees covered by the award who are not eligible for JobKeeper. To find out more click here! About Essential HR Essential HR, located in Adelaide, works in partnership with Employment Innovations, making employment easier by combining HR, legal & payroll services with technology. With a powerful combination of new age technology, partnerships and expertise, we will deliver efficiencies, compliance and forward thinking to your business that you never thought possible.

Ben Thompson (CEO at Employment Hero) and Simon Obee (Principal Lawyer at Employment Innovations ) ran a very informative webinar yesterday looking at what the WorkPac v Rossato casual employee entitlements decision mean for your business? On 21 May, the court decision of WorkPac Pty Ltd v Rossato [2020] FCAFC 84 gained a lot of (somewhat misleading) media attention and has left many Australian business owners feeling unsure where their casual employees stand. To see the helpful guide Ben and Simon have put together, unpacking the WorkPac v Rossato decision, click here .

On 18 May 2020, the Federal Court handed down its decision in Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia & Ors v Qantas Airways Limited [2020] FCA 656  which concerned accessing personal/carer’s leave and compassionate leave during a period of stand down. The Federal Court has determined that employees stood down pursuant to s.524 and s.525 of the Fair Work Act 2009 are not able to take paid personal/carer’s leave (“sick leave”) or compassionate leave whilst stood down without pay. Find out more from EI legal: CLICK HERE

The Coronavirus (COVID-19) outbreak in Australia has managed to challenge every aspect of business operation in a very short period of time.
I am sure the experience has exposed many strengths and weaknesses in your business and continues to do so.
I understand that many business owners, managers and employees are feeling a mixture of emotions: sadness, anxiety, stress, helplessness etc. However, I write this article, not to further communicate the horror effects COVID 19 is having on businesses, but to talk about the opportunities to build a better business post COVID 19 through good HR systems, practices and strategies.

This experience has certainly highlighted the need for businesses to future proof themselves, and now is your opportunity to develop and implement changes that will achieve this. Some trigger points indicating there are opportunities to improve in your business are: • Drowning in paperwork? • Using antiquated or inapt technology? • Losing focus from the bigger picture? • Experiencing too many employee issues? • Unsure how to manage your employees? • Lacking updated policies and procedures? • Concerned about meeting your legal obligations? • Wasting money on inefficient HR and payroll systems? • Experiencing high staff turnover? • Hearing employee excuses instead of ownership? • Losing your best employees and customers? • Concerned your processes are a compliance risk? • Confused about who to ask regarding HR matters? Below I look at 5 opportunities you can implement during this period to future proof your business. Implementing better HR and Payroll systems and processes A good starting point that won’t cost you a fortune is implementing HR and Payroll technology such as EI Payroll and Employment Hero (HR Platform). Although they are two different platforms, they seamlessly integrate. Just by implementing these systems alone you will reduce time spent on HR administration and payroll processing by 70-80%. This means you do not need to allocate full-time resources to manage these activities across your business. Here is a list of what the benefits are: Creates a paperless environment – saving you thousands on paper and stationary, all activities will be completed via the platform, such as timesheets, rosters, employment contracts, ever-occurring letters including salary increases, promotions, job transfers, warnings and terminations and any other events that may arise. Improves and makes less confusing compliance - reducing the risks of underpaying or overpaying staff, fines from Fair Work Ombudsman for non-compliance and legal fees to defend an employee claim. Boosts efficiency and productivity – Everything is securely kept in the cloud. This means there’s no such thing as lost files, relevant staff can work remotely, it’s easier to work with external consultants, your employees can check their details on the go and new starters can onboard and commence induction activities before they walk in on their first day. Goodbye filing cabinets. Engaging with your people – through employee self-service, staff can maintain their own personal details, have access to company policies and procedures and other important information. They will also have access to Learning online, receive Company announcements, complete performance reviews online and much more. EI Payroll and Employment Hero was built here in Australia and empower SMEs by providing automated solutions for employee management and engagement, payroll and employee benefits. Check out Employment Hero at https://www.esshr.com.au/hr-software Performance Management System In my experience as a HR professional working across the SME industry, the number one pain point is employee performance. Often there is either no review process and employees simply miss out on getting any feedback and development or the process in place is all-encompassing, inconsistent and often has little impact in improving performance. Having a high performing team and maximising the return on your investment is going to be key to future proofing your business. Ultimately your business is only as good as the people in it. A performance management system does not need to be complex, time consuming and about filling out paperwork – these do not work! What a performance management system needs to achieve is a culture of learning and development through constructive feedback, encouragement and mentoring, empowering people to take responsibility to achieve great things and recognising and fostering talent. It also needs to cater for those who are not doing a good job and work with them to improve or exit the business. Workforce Restructures Many SME’s grow organically and as a result may reach stages of growth where the organisational structure becomes ineffective. Often the resources you employee in the early days of growth are not the resources you need later. You may experience the constant exiting of staff who no longer suit the needs of the business, replacing them with new resources to accommodate the needs of the business for that moment in time. This can be a very costly and stressful way to grow your business. Now is the perfect time to set up an organisational structure to accommodate your future growth. Ideally you want to build a structure of your organisation to ensure you govern the workflow of your company making it easier to add new positions and provide flexibility and ready means for growth. TIP Create an organisational structure where team members are the “doers” and the leaders are the “enablers”. The leader of a team does not necessarily need to be the expert in the product or service the team members are delivering. Too often I see a high performing “doer” promoted to a leader, only to struggle in the leadership role. A team leader or manager should be an expert in leadership where they can effectively resource against demand and budget, they have strong commercial acumen to be able to understand the bigger picture, they can mentor and develop people, they have an ability to empower people to take ownership and responsibility and do not micromanage staff, they are very effective communicators and not afraid to deal with issues and challenges as they occur. Have HR policies that protect your business Often HR policies and procedures are either out of date or absent in the workplace making it difficult to consistently embrace any action or decision when an employee event or issue arises. Having well written, up-to-date policies creates an environment of assure uniformity of action throughout the business. They provide managers a guideline by which they can effectively manage employees. They also provide tools to communicate the standards and responsibilities of your employee’s and what they can come to expect of your business. Over the last few years there have been many changes across the Industrial Relations landscape, and these changes should be reflected in your HR policies and procedures to ensure compliance is adhered to. Updating Employment Contracts Every single employee in your business requires an employment contract and if they are not carefully drafted, you run the risk of ambiguity and failure to meet legal requirements. If any issues do arise, an ambiguous contract could prove very costly down the track. Recently, the Fair Work Commission handed down a decision for annualised wages as part of its four-yearly review of modern awards The decision requires employers to comply with certain new modern award annualised wage clauses from 1 March 2020. This means employers must ensure that an appropriate set-off clause is included in the employment contracts for those employees, which covers and specifies all award entitlements for the employees for all hours worked. Now might be a good time to review and re-issue new employment contracts that detail new legislative changes. How can we assist Essential HR in partnership with Employment Innovations are leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium-sized employer needs – including workplace advice, legal services, outsourcing payroll, payroll software, human resource management & HR software. We can assist you to build a better business ready to thrive post COVID 19. Contact me directly at Justine.pepper@esshr.com.au

Today the Morrison government announced around 6 million workers will receive a fortnightly payment of $1,500 (before tax) through their employer. This is to assist businesses to retain their employees and help rebuild business once the Covid 19 crisis is over. For more information click this link https://treasury.gov.au/coronavirus/jobkeeper

The Fair Work Commission has inserted a temporary Schedule l effective from an employees first full pay cycle on or after 28th March 2020 until 30 June 2020. The changes affected are: 1. employees’ classifications and duties 2. minimum engagement/pay for part-time and casual employees 3. span of hours changes while working at home 4. full-time and part-time employees' hours of work 5. directions to take annual leave. 1. Employee Classifications and Duties Employers can direct their employees to do any tasks that they have the skill, competency, qualifications and licences for, even if those tasks aren’t in their usual classification or normal work. If an employee is directed to work above their usual classification for more than one day, the employer needs to pay them at the higher rate. Employees who do tasks below their usual classification are still paid at their usual pay rate. 2. Minimum engagement/pay for part-time and casual employees Part-time employees who have agreed to work from home can have their minimum engagement reduced to 2 hours per shift (rather than 3 hours) and casual employees who have agreed to work from home must be paid for a minimum of 2 hours (rather than 3 hours). 3. Span of hours while working from home Where an employee is working from home the span of hours has changed to: 6am and 11pm, Monday to Friday 7am and 12.30pm, Saturday. 4. Hours of work for full-time and part-time employees Employers can temporarily reduce their permanent employee’s hours of work to not less than 75% of their full-time ordinary hours or agreed part-time hours immediately prior to the reduction. There needs to be a least 75% of staff (in the business or section of the business affected) to vote yes to a reduction in hours of work. The employer needs to follow these steps for the vote to be valid: If any employee is a known member of a union, let the union know about the vote. Provide the employees with the contact details for the Australian Services Union (ASU), f they wish to contact the ASU for advice. Email clerksaward@fwc.gov.au about the vote and provide the employees' private email addresses. The Commission will email the employees the ASU COVID-19 Information Sheet. Hold a vote at least 24 hours after they have followed steps 1-3. Any employee who has had their hours reduced can ask their employer for permission to: find more work with another employer access training, professional development and study leave through their employer. An employer can’t unreasonably refuse an employee’s request for find other work. An employer must also consider all reasonable requests for training, professional development or study leave. Employees working reduced hours under Schedule I will continue to accumulate their paid leave and termination of employment entitlements based on their ordinary hours of work before the reduced the hours started. An employer and employee can also individually agree in writing to reduce the employee's hours. 5. Direction to take Annual Leave Employers can direct an employee to take annual leave, giving 1 weeks’ notice (a shorter notice is allowed where both parties agree). Where a business is closing down for a period due to coronavirus and an employee does not have enough paid leave entitlements, all or part of the leave can be taken as unpaid leave. However, any period of unpaid leave is to count as service for entitlements under the Clerks Award and National Employment Standards. If the business isn't closing, the employer can only direct an employee to take annual leave if the: employee still has at least 2 weeks of leave left after the direction employer considers the employee's personal situation. For help in re-organising your work force to cope with the coronavirus affects on your business contact me directly at justine@esshr.com.au. Further information can be found https://www.fairwork.gov.au/

When you are looking at terminating an employee by way of redundancy there are several factors you need to consider before taking action. Below is a quick overview, however, it is recommended to seek advice. Redundancy pay may vary depending on your Registered Agreement, applicable Modern Award and number and type of employees you have. When redundancy can be used as a way to terminate someone’s employment Ending someone’s employment by way of redundancy can be done when an employee's position is no longer required by an employer due to restructuring or operational changes in the employer's enterprise which renders their position unnecessary. Essentially the work or role is no longer required to be performed by any employee. Redundancy can also occur when an employer becomes insolvent or bankrupt. Restructuring and operational changes may occur when new technologies are introduced (ie a job is completed through the technology rather than a person), the business closes, has a decline in sales or production, the business relocates interstate or overseas or there is a restructure or reorganisation because a merger or takeover happens. Consulting with employees who may be affected All awards and registered agreements have a consultation process for when there are major changes to the workplace, such as redundancies. This consultation process should occur as soon as possible after the decision has been made to make changes. The consultation process may look like this: Written communication to affected staff regarding changes in the business, the reason for the major changes and the impact the changes may have on them. Invite those affected to attend a discussion around the changes and invite them to ask questions and suggest ideas about the changes. Consider any ideas and changes. See what other roles are an available across the business. Perhaps those affected could be offered a different position that matches their experience and qualifications? Should no other options be available, provide notice regarding the redundancy in writing and what the time frame will be. Include what they will be entitled to. Who are entitled to redundancy pay and how much? Most full time and part time employees who work for an organisation with 15 or more staff are entitled to redundancy pay based on years of continuous service. Employees who do not get redundancy pay are: employees whose period of continuous service with the employer is less than 12 months employees employed for a stated period of time, an identified task or project, a particular season employees terminated because of serious misconduct casual employees trainees engaged only for the length of the training agreement apprentices employees who work for a small business with less than 15 employees (some exceptions) Redundancy pay is on top of any notice periods and accrued entitlements such as annual leave and LSL. Employee's period of continuous service with the employer on termination Redundancy pay period At least 1 year but less than 2 years 4 weeks At least 2 years but less than 3 years 6 weeks At least 3 years but less than 4 years 7 weeks At least 4 years but less than 5 years 8 weeks At least 5 years but less than 6 years 10 weeks At least 6 years but less than 7 years 11 weeks At least 7 years but less than 8 years 13 weeks At least 8 years but less than 9 years 14 weeks At least 9 years but less than 10 years 16 weeks At least 10 years 12 weeks Before calculating redundancy pay make sure you check the applicable Registered Agreement and Award as redundancy pay may vary. For example, under the Building and Construction General On-site Award, the minimum redundancy pay is different. Also note where an organisations is considering making redundant 15 or more employees, you must give written notification to the Department of Human Services. Essential HR in partnership with Employment Innovations are leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium-sized employer needs – including workplace advice, legal services, outsourcing payroll, payroll software, human resource management & HR software.

Whether you are a large corporation or a small family business, getting payroll right should be a priority. With a constant flow of companies being publicly prosecuted for underpaying employees, payroll compliance in Australia is under the spotlight. Navigating payroll laws, correctly interpreting the Modern Awards and National Employment Standards (NES) and keeping up with constant changes to legislation can be a challenge. Often small and medium sized businesses pass off the important payroll function to their Finance Officer or Administration/Practice Manager, who are not necessarily an expert in all facets of the field. They may not recognise that there are two main specialist requirements associated with payroll that often throws up the question, “Is payroll a Finance or HR function? The answer is, it is both. The knowledge and skills of a Finance specialist to successfully manage the payroll are: Working with numbers Interpreting taxation laws and legislation and keeping up with changes and updates Company superannuation Managing the chart of accounts Migrating the pay journal to the accounting platform Financial Reporting The knowledge and skills of a Human Resources Specialist to successfully manage the payroll are: Understanding company policy around paying staff Interpreting modern awards, entitlements and other employee related legislation such as terminations of employment Keeping abreast of legislation changes and updates Best practice concerning staff remuneration Dealing with privacy laws and confidentiality Dealing with equality regarding pay It is therefore a function that needs more than one specialist involved to achieve 100% payroll compliance. In this article we recommend 3 important ingredients to achieving payroll compliance. 1. Select the right Payroll Software It’s common for small to medium sized businesses to run their payroll through accounting packages such as MYOB or Xero. Unfortunately, the payroll features in most accounting packages are extremely limited and unsupported. They lack manager-level access to approve and create timesheets and leave requests, advanced payroll reporting, award interpretation, custom rule interpretation, employee scheduling and much more. They’re also labour intensive and require resources who are spot on in interpreting the law and legislation when it comes to paying your people. Many medium and large organisations tend to deploy software developed decades ago. These platforms are difficult to customise, lack automation, are a drain on internal servers and resources, are costly to implement and are limited in their ability to integrate with other platforms. Unless your payroll system is already integrated with your accounting system, you will either need to pay for integration, manipulate CSV files or manually enter your payroll data for your accounts. EVOLVING SYSTEMS Payroll software is constantly evolving - increasing the level of automation for repeatable rule-driven tasks and safeguarding your compliance obligations. These software advances provide greater efficiency, speed and integration, so it’s imperative to use the best tools in order to keep up. Access to the best platform could be the difference between a business surviving or perishing, particularly in high-growth situations where scalability is important. Available today are cloud-based payroll platforms that suit any sized business. They’re affordable and scalable and offer automation, built-in compliance and Application Programming Interface (API), which means they interface with other systems such as Xero, MYOB, QuickBooks and more. 2. Know your obligations around record keeping Small and medium sized businesses struggle keeping compliant records due to having a lack of systems and processes in place, and no dedicated resource to manage it. However, the Fair Work Act 2009 has strict rules and regulations around record keeping, including what details need to be displayed on payslips. Some examples of what records need to be kept in a private and secure location are: General employer’s and employee’s name employer’s ABN (if any) employee’s commencement date whether the employee is full-time, part time, or casual whether the employee is permanent or temporary. Pay pay rate paid to the employee gross and net amounts paid any deductions from the gross amount details of any incentive-based payment, bonus, loading, penalty rate, or other monetary allowance or separately identifiable entitlement paid. Hours of work any penalty rates or loadings paid to employees for overtime hours worked, including: the number of overtime hours worked by an employee during the day when the employee started and finished the overtime hours the hours an employee works if the employee is a casual or irregular part-time employee who is paid based on time worked a copy of the written agreement if an employer and employee have agreed to an averaging of the employee’s work hours. Leave any leave taken how much leave an employee has. If an employee is able to cash out annual leave, the employer has to keep: a copy of the agreement to cash out the amount of leave a record of how much was paid, the amount of leave cashed out and when the payment was made. Under an award, if an employer agrees for an employee to take annual leave in advance, the employer has to keep a copy of the agreement. The agreement has to say the amount of leave taken and the day the leave starts. Superannuation contributions amount paid pay period date(s) paid name of super fund reason the employer paid into the fund (eg a record of the employee’s super fund choice and the date they made that choice). If employers pay a defined benefit interest into a defined benefit fund, employers don’t have to include these contributions in the record. Individual flexibility agreements If an employer and employee agree to an individual flexibility agreement under an award or registered agreement, a record must include both: a copy of the written agreement a copy of any notice or agreement to terminate the flexibility agreement. Guarantee of annual earnings the guarantee the date the guarantee was cancelled (where applicable). Ending employment how the employment was terminated e.g.by agreement, summarily, or in some other way (specifying details) if notice was provided and, if so, how much the name of the person who terminated the employment. Transfer of business Where there has been a transfer of business, the old employer has to give the new employer records of any transferring employee. The new employer also has to ask for employment records from the old employer for any transferring employee who becomes an employee within three months of the sale. Time and wage record must be kept for 7 years. If records aren't kept or are incorrect, Fair Work Inspectors can give employers a fine, called an infringement notice. If you are feeling a little overwhelmed at the moment, don’t be! There are affordable payroll and HR platforms available, designed to help small and medium sized businesses store all their employee records in a central location, as well as collect, issue and maintain compliant records. 3. Be selective with who you have set up and manage your payroll You can have the best payroll platform in place; however, you still need expertise in setting it up and managing. Many non-compliance issues are due to incorrect set up in payroll and in some cases the errors go back for years. 3 Common areas for errors include: 1) Pay codes: Pay codes determine entitlements, tax, super, and in most cases payroll tax liability, and Single Touch Payroll (STP) reporting. Common areas for errors include when to use categories as ordinary hours, associated accruals or Superannuation Guarantee Contributions (SGC) to those categories and when something is considered an allowance. Similarly, whether allowances are subject to SCG and more recently STP reporting rules are often incorrectly setup. 2) Deductions/back payments: These have a direct impact on employee’s taxable earnings, Single Touch Payroll (STP) reporting and tax amount. As we know deductions can be before or after tax and there are specific rules surrounding the treatment of deductions/back payments that should not be ignored. 3) Leave code/category: They determine the accrual rate and entitlement period. The leave code/category should at least meet the national minimum standards or state/territory minimum for Long Service Leave (LSL). Correctly determining whether a leave category is paid or unpaid is a common oversight. As you can see there is a lot that can go wrong with the setup. If non-compliant, it could lead to inaccurate leave accruals, superannuation errors, under/overtaxing employees, not meeting your company payroll tax or reporting obligations, among others. Rectifying these errors will cost companies money, resources and reputation. Essential HR in partnership with Employment Innovations are leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium-sized employer needs – including workplace advice, legal services, outsourcing payroll, payroll software, human resource management & HR software.

The Fair Work Commission has made amendments to the Retail Industry Award that will see initial changes come into effect on 1 March 2020. There will be further amendments later in the year and again in 2021. These revisions will affect both casual and permanent employees. What are the changes for casual employees? Currently, casual employees that worked after 6:00 pm on Monday to Friday received a penalty payment of 35% loading (25% casual loading plus 10% penalty loading). As from the 1 March 2020, these penalty payments will increase to 40%. From 1 October 2020 the penalty payment will increase to 45% and then to 50% from 1 March 2021. Where casuals work a Saturday, from the first full pay cycle after 1 March the penalty will increase to 50% (currently 45%) There will be further changes to casual shift workers’ rates of pay from 1 July 2020 onwards (a reduction from a 115% loading to a 100% loading). Note: Each of these rates includes the employees’ casual loading. Note: any changes to pay rates commence from the start of a new pay period after the effective date. What are the changes for permanent employees? Effective 1 July 2020, non-shift workers that work hours on a Sunday will receive an additional 50% loading. (currently the penalty is 65% so this will be a decrease) Shift workers who work on a Sunday will receive an additional loading of 75%. (currently the penalty is a 90% loading, so again this is a decrease). About Essential HR Essential HR recognise that many small to medium sized businesses in Adelaide do not have internal HR resources. We have developed cost effective and scalable solutions to suit any business needs. We deliver our solutions with a focus on systems & processes, compliance, performance and retention, aligning company goals with best practice HR strategies. What sets us apart from traditional HR consulting is we are powered by Employment Innovations, meaning we can offer additional support and services including outsourced payroll processing, HR and IR legal advice and HR/ payroll technology, such as Employment Hero and Keypay.

On 21 August 2019, the Full Federal Court of Australia handed down a decision in Mondelez Australia Pty Ltd v AMWU. The decision deals with the method of accruing and taking paid personal/carer’s leave for the purposes of the National Employment Standards under the Fair Work Act 2009. The decision said that: full-time and part-time employees each get 10 days of paid sick and carer’s leave for every year of employment paid sick and carer’s leave accumulates in days, not hours. The Australian Government and the company involved in the case, Mondelez Australia Pty Ltd, applied to the High Court of Australia to appeal this decision. The High Court granted these applications on 13 December 2019. This means an appeal of the Mondelez decision will be heard by the High Court. In the meantime, the decision made on 21 August 2019 is the current state of the law and applies to affected employers and employees. What are the changes? Full-time and part-time employees are entitled to 10 working days of paid personal/carer’s leave for each year of employment . The leave must be calculated in working days and not hours as it previously was. A working day is defined as the portion of a 24-hour period that an employee would be working. For example, where an employee is rostered on 12 hour shifts, and they take personal/carer’s leave for the whole shift, then 1 day is deducted from their personal/carer’s leave accrual, not 12 hours or 7.6 hours. For every day of personal/carer’s leave taken, an employer deducts a day from the employee’s accrued leave balance. If an employee takes a part-day of leave, an equivalent part-day is deducted from the employee’s accrued leave balance. How can you implement the changes? You will need to make changes to your payroll platform settings from accruing in hours to accruing in days. For example, the accrual rate should now be 0.02739726 days or 0.0273224 days (in a leap year). You will also need to ensure when employees take personal/carers leave that the system deducts a day or part day from the employee’s balance. For an employee who works 38 hours a week, 7.6 hours a day, 5 days a week the change is reasonable simple. However, where you have employees who work part-time or do shift work, it will be much more complex, particularly where there is no rostering system or set standard hours per day. For example, you employ a part-time employee who does not have a set roster in place where they work standard hours on particular days of the week. Without this structure in place it will be difficult to manage the accruals and deductions properly. How can we help? Having the right payroll platform and employment contracts in place will be fundamental to implementing these changes successfully. Essential HR recognise that many small to medium sized businesses in Adelaide do not have internal HR resources. We have developed cost effective and scalable solutions to suit any business needs. We deliver our solutions with a focus on systems & processes, compliance, performance and retention, aligning company goals with best practice HR strategies. What sets us apart from traditional HR consulting is we are powered by Employment Innovations, meaning we can offer additional support and services including payroll processing, legal advice and HR/payroll technology , such as Employment Hero and Keypay. For a free consultation contact me justine@esshr.com.au

Commencing 1 March 2020, the Fair Work Commission will implement changes to 18 Modern Awards as part of the four-yearly review. If you have employees paid an annual wage or salary, these changes may affect you. The changes relate to how employees on annualised wages are paid and reported on, including employer obligations surrounding record-keeping, payment of entitlements, annual reconciliations and notifying or agreeing on the employee’s salary. ‍ Below is a summary of what awards are affected, what the changes are and recommendations on how to implement into your workplace. 1. What awards are affected? A list of the modern awards that will be affected is set out below, Awards where the employer is able to pay an annual salary under the annualised salary provisions in awards WITHOUT employee agreement Banking, Finance and Insurance Award 2010 Clerks – Private Sector Award 2010 Contract Call Centres Award 2010 Hydrocarbons Industry (Upstream) Award 2010 Legal Services Award 2010 Mining Industry Award 2010 Oil Refining and Manufacturing Award 2010 (clerical employees only) Salt Industry Award 2010 T Telecommunications Services Award 2010 Water Industry Award 2010 Wool Storage, Sampling and Testing Award 2010 Awards where the employer is able to pay an annual salary under the annualised salary provisions in awards BUT ONLY WHERE EMPLOYEE AGREES Broadcasting and Recorded Entertainment Award 2010 Local Government Industry Award 2010 Manufacturing and Associated Industries and Occupations Award 2010 Oil Refining and Manufacturing Award 2010 (non-clerical employees) Pharmacy Industry Award 2010 Rail Industry Award 2010 Horticulture Award Pastoral Award 2010 Awards where the new requirements will be introduced at a later date (which is yet to be determined) – employer able to pay an annual salary under the annualised salary provisions in awards BUT ONLY WHERE EMPLOYEE AGREES Health Professionals Award 2010 Awards where the new requirements will be introduced at a later date (which is yet to be determined). Where an annual salary is paid to a non-managerial employee this must be BY AGREEMENT. The annual salary must be an amount not less than a specified percentage above the minimum weekly wage set out in the modern award. Marine Towage Award 2010 Restaurant Industry Award 2010 Hospitality Industry (General) Award 2010 2. What the changes are! While there will be slight differences between awards, all will require a written record of: The annualised salary you pay. Which provisions of the award you satisfy by paying the annualised salary. The method you used to calculate the annualised salary, including the methods used to calculate each component such as overtime and penalty assumptions. Overtime hours which the employee may have to work. Timesheet start and finish times (including any unpaid breaks) that employees must then sign or acknowledge stating the records are correct.
‍ Employers will also be required to conduct annual employee audits from the commencement of the annualised salary arrangement or upon the termination of the individual’s employment. The audit must calculate the amount of remuneration the employee would have received had they been paid in accordance with the award provisions. Any shortfall identified in the audit must be paid to the employee within 14 days. It’s important to understand that failure to comply with these new changes will be treated just like any other breach of a Modern Award, meaning employers may be subject to significant penalties if they fail to comply.
‍ 3. Recommendations on how to implement into your workplace Implement Payroll Software that keeps up with changes, has in-built awards and pay conditions rules, online timesheets and leave management, and can easily produce reports and data you need, such as data to conduct an annual audit. Essential HR, powered by Employment Innovations provides template documents that will meet the new documentation requirements in all the modern awards affected. This will be available free of charge to all our clients on Essential, Professional and HR Partner subscriptions (which all include unlimited access to HR documents). The changes to annualised salary provisions are complex. Essential HR and Employment Innovations offer products and services that can make the transition easy and stress free. To find out more visit www.esshr.com.au or drop us an email at justine@esshr.com.au