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There’s never been a better time to ensure your compliance measures are up to scratch.
This year, some of the biggest changes to Australian employment laws since the introduction of the Fair Work Act 2009 came into effect.
Let’s take a look at some of the highlights.
Small claims and underpayment of wages
From 1 July 2023, employees have more bandwidth to take action against their employer for issues such as underpayment of wages, with the cap that can be awarded increased from $20,000 to $100,000.
Previously, all claims above $20,000 would have to be heard by a local court, which was often a complex, time-consuming and expensive process.
Now that the cap has been changed to up to $100,000, these matters are now considered in the small claims jurisdiction of the Federal Circuit Court and state and territory courts by a judge with no jury.
The benefits include faster application time, and usually, it’s less expensive as lawyers aren’t normally needed.
Businesses should be aware of the changes and take action to ensure payroll and award rates are correct and up to date.
Deputy’s Award Interpretation tool can help you to classify hours worked as ordinary, overtime, or penalty rate hours.
Our break planning tool also makes it easy for you to schedule your employees for the right breaks at the right times.
Flexible working arrangements
From 6 June 2023, employees will have more power to request flexible working arrangements.
By law, an employer is unable to refuse a flexible working request without discussing alternative working arrangements with the employee first, provided the employee meets the requirements to make such a request.
If the employer still wants to deny the request, they must provide a written response to the employee within 21 days that justifies the reason.
The reason can be based on reasonable business grounds, which include:
- The request is 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.
If discussions at a workplace level cannot be resolved, either party may refer the dispute to the Fair Work Commission.
Deputy’s journaling tool helps managers keep a record of staff performance, which can be helpful when weighing up decisions such as requests for a change in work circumstances.
Non-compliance risks
Failing to comply with Australian labour laws can not only harm a business’s reputation and lead to decreased employee morale and productivity, but it can also severely impact the business’s bottom line.
For example, an underpayment of wages that rises to the level of a “serious contravention” of the Fair Work Act can result in fines of up to $660,000 for businesses and $133,200 for individuals.
In February 2023, the Fair Work Ombudsman (FWO) put the hospitality industry under the spotlight to ensure workers were receiving the right pay and entitlements. Fifty food outlets in Perth were targeted, with inspectors uncovering “high levels of non-compliance”.
Across the fast food, restaurant and café sector in 2021–22 alone, the FWO secured court-ordered penalties of $1.66 million from litigations and recovered more than $13 million for underpaid workers.
A business that fosters a culture of workplace compliance is essential in today’s market.
Deputy is packed with features that make it easier for businesses to manage Fair Work compliance.
“In short, doing the right thing is good for business. Compliant businesses are sustainable businesses,” Deputy’s general counsel, Frank Chila, said.
“Pen and paper compliance no longer works. That’s where software like Deputy comes in. Deputy helps to provide peace of mind and takes the heavy lifting out of compliance.”
To find out more about how Deputy can help you with your compliance matters, check out our Let’s talk compliance guide here.
