The financial year is rapidly coming to an end and I’m sure everyone is incredibly focused on trying to ensure it ends as positively as possible. Hopefully, this update will alleviate some of the worry about what to focus on next in relation to managing your employees and HR/IR compliance to avoid any unnecessary sleepless nights. If you don’t have an in-house HR team or outsource human resources requirements to an human resources consultant, then I’m sure you spend a lot of time trying to stay up to date with changes to ensure compliance with all workplace regulations and avoid costly penalties. I hope you find this timely update helpful in your planning for the next financial year.
Pay Increase
The Fairwork Commission confirmed the National Minimum Wage will increase by 3%, which is equates to $19.49 per hour. The increase will take effect from 1 July 2019 and will apply to all modern award minimum wages. Whether your employees are covered by an Award or not, all businesses who operate in Australia, must ensure that employees are not paid less than this wage order. Even if you pay your employees above Award minimum wages, you should schedule a review of your wages annually in June, to ensure that you are still meeting minimum requirements.
Compliance Targets for 2020
With the Prime Minister’s backing, the Fairwork Ombudsman (FWO) has confirmed that they will be taking a stronger approach to enforcement and adherence with industrial relations laws.
Specifically, enforcement officers want to ensure that workers are not being underpaid and are receiving their appropriate entitlements. The priority industries or issues the FWO will be focusing on in 2019/20 are:
Fast food, restaurants and cafes
Horticulture and the harvest trail
Supply chain risks
Franchisors
Sham Contracting
So if you don’t have the resources in-house, to manage this, perhaps now is the time to engage HR consultancy services to complete a HR Compliance Audit.
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