PJT Accountants

Are you sure you pass the new Industrial Relations Laws?

2010 has been an interesting year so far.  With the additional changes coming in for Industrial Relations on 1 January 2010 and the transition period ending on 30 June 2010, employers have found themselves in a confusing world.

Some of the main areas we have found that employers do not comply with are:

  • Ensuring their employees are under the correct award.  Some employees have now changed the award they fell under.
  • Paying the correct allowances
  • Meeting the new full time hours and overtime requirements

If you need more information in these areas, please do not hesitate to contact us for assistance.  You can also find a list of awards at Fair Work Online at www.fairwork.gov.au or call 13 13 94. 

Pay Slips

You also need to insure you have all the correct information on a payslip.  The employee’s pay slip must include:

• the name of the employer (for example, XYZ Pty Ltd trading as XYZ Pie Shop)
• from 1 January 2010 - the Australian Business Number (ABN) (if any) of the employer
• the employee’s name
• the date of payment
• the pay period (eg. 24/3/09 to 30/3/09)
• the gross and net amount of pay
• any loadings, monetary allowances, bonuses, incentive-based payments, penalty rates or other entitlements paid that can be singled out
• if the employee is paid an hourly rate - the ordinary hourly pay rate and number of hours worked at that rate and the amount of pay at that rate
• if the employee is paid an annual rate (salary), the rate as at the last day in the pay period
• any deductions made from your employee's pay, including the amount and details of each deduction (including superannuation) including the name, or the name and number, of the fund or account the deductions are paid into

If you are required to pay superannuation contributions for your employee’s benefit, you should include:
• the amount of each superannuation contribution made during the period to which the pay slip relates, or the amounts of contributions that you are liable to make; and
• the name or the name and number of the superannuation fund you put or will put superannuation contributions into.

If you issue pay slips electronically, they must also be sent to an electronic personal account and issued in an easily printable format.

Time and Wage Records

Employers must keep a number of written records of their employees for 7 years. This includes records about time and wages.

What MUST appear in employee records?

Who & when
1. The name of the employer and the name of the employee.
2. From 1 January 2010 - the Australian Business Number (ABN) (if any) of the employer.
3. Date the employee started employment.

Type of employment, hours & rates of pay
4. If the employee is full-time, part-time.
5. If the employee is permanent, temporary or casual.
6. The employee's pay rate, including gross and net amounts paid and any deductions from the gross amount.
7. Any loadings, monetary allowances, bonuses, incentive-based payments, penalty rates or other entitlements paid that can be singled out.
8. If a penalty rate or loading must be paid for overtime hours actually worked, the number of hours of overtime worked, or when the employee started and finished working overtime.
9. Hours worked if the employee works casual or irregular part-time hours and is guaranteed a pay rate set by reference to a period of time worked.
10. A copy of the written agreement if you and your employee have agreed to average the employee's work hours.
11. If you and your employee have agreed to an individual flexibility arrangement, a copy of that agreement, and, if the agreement is terminated, a copy of the termination.

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