What is happening in the world of HR for small business?
Minimum Wage Increase
Last week, the Fair Work Commission announced that the National Minimum Wage would increase by 5.2% and the Award Minimum Wage will increase by 4.6%.
The majority of increases will be effective from the first pay period after 1 July 2022. For some awards in the aviation, hospitality and tourism industries, the increase will happen from 1 October 2022. The affected awards are:
Aviation
- Aircraft Cabin Crew Award
- Airline Operations – Ground Staff Award
- Air Pilots Award
- Airport Employees Award
- Airservices Australia Enterprise Award 2016
- Hospitality Industry (General) Award
- Registered and Licensed Clubs Award
- Restaurant Industry Award
- Marine Tourism and Charter Vessels Award
- Alpine Resorts Award
This is a significant increase so if you haven’t recently reviewed your employees’ salaries to ensure they are still meeting the minimum requirements, now is the time.
It is also a great time to check rates for employees that receive a flat hourly rate and are still meeting the Better Off Overall Test (BOOT). Wage theft laws have been implemented in most states. A case in NSW saw a company Director incur a personal fine of $39,000 for underpayment of wages. For further information on how to avoid problems with a flat rate, read our article ‘Are you at risk when paying employees a ‘flat rate’?’.
If you would like one of the Strawberry Seed Team to assist you with an audit of your employee wages, please give us a call on (03) 4216 5200 or book a meeting online.
Strawberry Seed Consulting – Free June Webinar
The next in our series of free webinars will be held on the 29th June 2022 at 7.30 pm. Bookings can be made here and please feel free to pass this on to other business owners.
Award Increases – What do employers need to know?
On the 1st of July 2022, the minimum wage and award rates will increase. In our free June webinar, we will look at what employers need to be thinking about to ensure that they continue to meet their legal requirements.
Please join our Director, Carli Saw, as she provides an overview of the key issues to consider, and the steps employers should be taking to manage their risk.
As we understand small business people have busy days, we have scheduled this session for the evening!
Casual Employees and Contractors
Now is the perfect time to review your Casual employees and Contractors to ensure they are still classified correctly and have not crept into a regular pattern of work that will put you at risk. If you would like assistance in reviewing your current employment classifications, book some time with one of our team.
2022 Superannuation Increase
This is a reminder that effective 1 July 2022, employers will be required to increase the minimum superannuation contribution to employees from 10% of “Ordinary Time Earnings” (OTE) to 10.5%.
Depending on whether an employee’s salary is expressed as inclusive or exclusive of superannuation, it may decrease an employee’s take-home pay or increase costs for the employer. Now is an excellent time to carefully review how this increase will affect your employees.
Is your remuneration inclusive or exclusive of superannuation?
Superannuation is often framed as an add-on to wages. Therefore we say, “your salary is $60,000 plus 10 % super”. Every time we use the phrase “plus super”, we are saying that remuneration is exclusive of superannuation.
The benefit of structuring pay as exclusive of superannuation is that it makes it easy to compare the pay rates against Award rates as Modern Awards rates are exclusive of superannuation. It also makes it much easier to implement an increase in superannuation.
Executives and professionals may sometimes have their wages expressed inclusive of superannuation. For example, “The salary is $66,000 inclusive of super” or “$60,000 plus 10% superannuation”. For this group of employees, their take-home pay will reduce on 1 July 2022.
Now is a good time to consider how this impending increase will impact your business. For assistance with this process, speak to a member of the Strawberry Seed team.
New Child Safe Standards for Victoria – start on 1st July 2022
Victoria’s Child Safe Standards (Standards) are a mandatory framework to better protect children and young people from harm and abuse. The standards were initially put into effect in Victoria in 2016 and have improved safety by changing organisational culture to embed child safety in everyday thinking and practice.
Victorian organisations and businesses that provide services or facilities specifically for children, have a legal obligation to comply with the Standards. Compliance with the Standards is regulated and monitored by the Commission for Children and Young People. The Standards also apply to organisations that engage children as employees, contractors or volunteers.
It is also important to note that the term ‘specifically for children’ does not mean services only for children. Specifically for children means that some or all of the services or programs the business provides are directed at or offered for children or are tailored for children or promoted to attract children and their families.
Recent changes have been made to the Standards to make these even stronger and to support greater national consistency.
What’s changing?
The 11 new Standards replace the existing 7 Standards and principles. New obligations include:
- involving families and communities in organisations’ efforts to keep children and young people safe;
- a greater focus on a culturally safe environment for Aboriginal children and young people; and
- identifying and mitigating risks of child abuse in online settings.
The new Standards set out minimum requirements and outline the actions businesses must take to keep children and young people safe. These are more specific than they were previously, providing businesses with more clarity and align with recommendations from the Royal Commission into Institutional Responses to Child Sexual Abuse.
For a full list of the Standards and information on exactly what is changing, view the Commission for Children and Young People’s overview here – What’s new? Overview of the new child safe standards.
My business is required to comply with the Standards – what should I do?
Applicable businesses should make themselves aware of the changes and identify any adjustments they may need to make to ensure their compliance by 1st July 2022, when the changes come into effect. In some areas, businesses may need to revise or build on their current child safety policy, practices and culture.
I’m not sure if my business is required to comply with the Standards – what should I do?
If you are not sure whether your organisation is required to comply with the Child Safety Standards, you can contact the Commission for Children and Young People (CCYP) directly who may be able to advise – contact@ccyp.vic.gov.au or phone 1300 78 29 78.
Are you ready for the 2022/23 Financial year?
With so many competing challenges being thrown at small business right now, it is not surprising that we get to the end of the financial year and find that some HR issues have been sent to the bottom of the list. In our article, 5 EOFY HR Questions for Small Business, we provide some tips around crucial matters such as the Minimum Wage Increase, that are well worth focussing on to avoid problems down the track.
