janene@skillsmart.net.au

0488 428 824

Implications of Fair Work Australia

for managing your staff performance

Enterprise Connect

• Free to eligible Companies• Review the Company’s strengths &

weaknesses• Identify opportunities for improvement• Provide up to $20,000 ($ for $)

Contact:

Michael FetherstonhaughBusiness Adviser – 0488 975 399

Investigation of people management in small business

Fair Work Australia and its impact on your business

Making it work for you

Overview of Workshop

What is your tip ?

Introduce yourself and describe why you chose the word you wrote.

Managing people

Part 1

Managing the Performance of staff

Businesses with performance management systems in place outperform other similar businesses

People management contributes directly to the bottom line

http://www.innovation.gov.au/General/Corporate/Documents/ManagementMattersinAustraliaReport.pdf

Who has a Performance Management system in place?

Business measure the financial bottom line but rarely find out about their staff or measure their outcomes.

Types of Employees

Full Performance Not yet full performance Growth potential

Inappropriate performance

How do you get performance improvement from your most important asset - your people?

Communication – is it absolutely clear what you are asking?

Education – do the people have the required skills and competencies?

Measurement – are there clear goals and evidence of progress towards them?

Reward –how will success be recognised?

Designed to assist business develop better management practices

Lift productivity of business by encouraging systems and documentation within the business

Fair Work Australia

Part 2

What every employer needs to know

about the Fair Work system1. Websites2. The Fair Work Act3. Who is covered by the national workplace relations system4. Who to contact for assistance5. Workplace inspections

http://www.fairwork.gov.au/ http://www.fairworkforsmallbusiness.gov.auhttp://www.fwa.gov.au

Part 2 Websites

Fair Work Australia – one stop for workplace issues

10 National Employment Standards New modern awards Bargaining at the enterprise level Rules on industrial action Right of entry to enter workplace on behalf

of unions

The Fair Work Act 2009 – an overview

Different state and federal workplace relations systems operating in Australia

Employees covered include those:

employed by sole traders, partnerships, other unincorporated entities and non-trading corporations

employed by a companies

employed by a Commonwealth authority

waterside employee, maritime employee or flight crew officer (for interstate or overseas trade).

Who is covered by the Fair Work system?

South Australia All private sector employers in the South Australian

state system will be covered by the national workplace relations system from 1 January 2010.

State public sector and local government not

covered, will remain under the South Australian State system.

Modern Awards commence 1 Jan 2010 Pay rates change from 1 July 2010

What happens in SA

Tribunals Fair Work Ombudsman Fair Work inspectors – powers include:

Entry to premises to monitor compliance Businesses will be required to have a:

Copy of the 10 National Employment StandardsCopy of relevant modern awards in their workplace

Fair Work Australia institutions

Who can help you in regional SA?

Angela Hill SafeWork SA, Whyalla SAPhone: (08) 86488733

Chris Kearns Senior Inspector - Industrial RelationsSafeWork SA, Port Lincoln 5606Phone: (08) 8688 3456Mobile: 0427 602 185

Kerry Williams SafeWork SA, Port Pirie SAPhone: (08) 8638 4781

Fair Work inspector may need to inspect your workplace

in response to a complaint or as part of an audit campaign to ensure

compliance

About Fair Work Inspectors employed by Office of the Fair Work

Ombudsman Or employed by a State or Territory government.

Workplace inspections

10 National Employment StandardsEntitlements under NES

1. Maximum weekly hours of work 2. Requests for flexible working arrangements3. Parental leave and related entitlements4. Annual leave5. Personal / carer’s leave and compassionate leave6. Community service leave7. Long service leave8. Public holidays9. Notice of termination and redundancy pay10. Provision of a Fair Work Information Statement

Conditions of Employment

Full –time – 38 hrs a week, continuing employment, benefits incl paid sick leave, annual leave, holiday pay, long service leave, carers and other types of leave

Part-time – regular hours but less than 38 hrs per week. Same basic entitlements as full-timers

Casual – employed on an hourly or daily basis. No paid sick leave or annual leave.

Apprentices and traineesIndependent contractorsOutworkers

Types of employment

Pay rates and minimum wages•Pay rates for many employees change on 1 July 2010 for workers earning less than $108,300

•Changes vary by state, industry and employer

•Number of awards – need to look for Modern Award

• A national minimum wage for workers not covered by an Award or Enterprise Agreement

•Transitional arrangements in most modern awards but there is time to adjust up to 2014.

•The Award specifies the minimum wage for all employees

Modern Awards

How to guide – http://www.fairwork.gov.au/Pay-leave-and-conditions/Finding-the-right-pay/How-to-guide/Pages/Page-0.aspx?role=employers

Section A – Find your modern award and pre-modern award

Section B – Calculate your base rate of pay Section C - Calculate your loadings or penalty

rates

Fair Work Infoline on 13 13 94 for assistance

Finding the right pay

Employers must generally give all permanent full-time employees at least:

4 weeks paid annual leave (5 weeks for shift workers)

10 days paid personal/carer’s leave per year 2 days unpaid carer’s leave (when needed) 2 days paid compassionate leave (when

needed) 12 months unpaid parental leave.

Leave and public holidays

Fair Work Information Statementhttp://www.fairwork.gov.au/Pay-leave-and-conditions/Conditions-of-employment/Pages/Fair-Work-Information-Statement.aspx?role=employeesWhatever method is used to give the Statement to an employee, it

is recommended that the employer retain details of how the Statement was given.

New employees

Dismissal system for small businessSmall Business Fair Dismissal Codehttp://www.fairwork.gov.au/Termination-of-employment/Pages/Small-Business-Fair-Dismissal-code.aspx?role=employeesChecklist on websiteApplies to small business with less than 15 full-time

equivalent employees

Employee may only make a claim if employed 12 months or more

http://www.deewr.gov.au/WorkplaceRelations/newworkplacerelationslaws/Documents/UDEmployees.pdf

Termination of employment

Redundancy under the NES happens when an employer either:

decides they no longer want an employee’s job to be done by anyone and terminates their employment (except in cases of ordinary and customary turnover of labour)

becomes insolvent or bankrupt.

Notice Periods apply: 1 year – 1 week, More than 1 year – 2 weeks, More than 3

years – 3 weeks, More than 5 years – 4 weeks If the person is over 45 years of age notice period increases

by 1 week if completed more than 2 years of service Notice periods do not apply to casual staff

Redundancy

Time & wages records Employers must keep a number of written records of their

employees for 7 years. This includes records about time and wages. Must be legible and in English, and be readily accessible to an

inspector. Must include name of employer and name of employee ABN of employer Date employee started employment Type of employment Employee’s pay rates, loading for overtime hours A copy of the written agreement for average hours worked Any flexibility arrangements and a copy of that agreement

Keep a file for each employee

Record keeping

Payslip templates available on the website - http://www.fairwork.gov.au/small-business-assistance/Pages/Templates-for-managing-employment.aspx?role=employers#managing

Payslips – information to be included on the payslipName of employerEmployer’s ABNEmployee’s nameDate of payment Pay periodGross and net amount of payLoadings, allowances, bonuses, incentive paymentsEmployee hourly rateEmployee annual salaryAny deductions – including amount of each deduction including

superannuation, name of the fund and account number

Payslips

Name of employer and name of employee ABN of employer Date started employment Type of employment Employee’s pay rate – gross and net, deductions, loadings,

bonuses etc A copy of written agreements A copy of any flexibility arrangements Leave information Superannuation information

A good idea to keep a record of any discussions in regard to termination of employment, disputes or unfair dismissal claims

Employee files

Agreements - Agreements set out the conditions of employment between:

an employee or group of employees their employer. Enterprise Agreements

Agreements - Workplace bargaining

Must be approved by Fair Work Australia before they commence operation:

To approve an enterprise agreement, Fair Work Australia must be satisfied that:

the agreement has been made with the genuine agreement of those involved

the agreement passes the better off overall test and does not include any unlawful terms or designated outworker terms

the group of employees covered by the agreement was fairly chosen

the agreement specifies a date as its nominal expiry date (not more than four years after the date of FWA approval)

the agreement provides a dispute settlement procedure the agreement includes a flexibility clause and a consultation

clause.

Approval and content of enterprise agreements

Employers must let a union official enter their workplace if the official has a valid permit and has given the required notice, and the official: ◦ is investigating an alleged breach of federal

workplace relations laws for a union-member employee or textile, clothing or footwear (TCF) outworker, or

◦ is holding discussions with employees who are entitled to be represented by the union and who want to participate in discussions.

Union right of entry

Industrial action Protected and unprotected action

Rules for industrial action

Best Practice Guides Work & family Consultation & cooperation in the workplace Use of individual flexibility arrangements A guide for young workers An employer's guide to employing young workers Gender pay equity Small business & the Fair Work Act Workplace privacy Managing underperformance Effective dispute resolution Improving workplace productivity in bargaining

http://www.fwo.gov.au/Best-Practice-Guides/Pages/default.aspx

Thank you