Fair Work

Casual Employment Rules have Changed!

BAS Agent's Blog, Payroll & Superannuation / By / / , , , , / 3 minutes of reading

On Monday 26th August 2024, changes to casual employment laws came into effect.

The changes include a new definition of a casual employee and a new pathway for employees to convert from casual to permanent employment.

Please note employees who are casual before the 26th of August, will remain casual under the current definition unless they choose to transition to full-time or part-time (permanent) employment.

New Casual Definition

A person will be a casual employee if:

  • there isn’t a firm promise of ongoing work and
  • he/she is entitled to a casual loading or casual pay rate under an award, registered agreement or employment contract.

Employees who begin as casuals will remain as casuals until their employment status changes either through a conversion process or by accepting alternative employment under a different status.

Casual Conversion – Employee Choice Pathway

There will be a new pathway for eligible employees to change to full or part-time employment. This will replace the current rules for changing to permanent employment and will be known as the  “Employee Choice Pathway”.

Under the new rules, eligible casual employees can notify their employers in writing of their intention to change to permanent employment. Employers can only refuse the notice for certain reasons (see below).

Casual employees can apply to move to permanent employment if:

  • they have been employed for at least 6 months (12 months if a small business) and
  • they believe they are no longer casual employees.

Employers must discuss this potential change to employment with the casual employee before committing to any change. The details of the changes must be worked through via this discussion. Then, employers must respond in writing within 21 days either accepting the change or not accepting it.

There are only a few reasons why a request to move to permanent employment can be rejected. These include:

  • the employee still meets the definition of a casual employee
  • there are fair and reasonable operational grounds that would negatively impact the business. Read more here about this here.
  • the employer is bound by a recruitment or selection process required by law and accepting the request would mean he/she is no longer compliant.

The current casual conversion rules will continue to apply to employers and casuals employed before 26th August 2024 for a transitional period. See those details here.

Reminder! Casual Employment Information Statement

There is a new statement to hand to all casual employees when they begin work. It must also be provided after 12 months of employment (small business employers) and for other employers, after 6 and 12 months, and then after every 12 months of employment. Download the statement here.

For further details about the changes to casual employment rules, go to the Fair Work website.

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Wage Theft Legislation is Coming! Review your Payroll Now!

BAS Agent's Blog, Payroll & Superannuation / By / / , , / 2 minutes of reading

On 1 January 2025, Wage Theft Legislation will be enacted. This legislation is part of the Federal Government’s “Closing Loopholes” laws which effectively change the Fair Work Act.

Wage Theft Legislation will make it a criminal offence to underpay wages deliberately. Penalties could be $7.825 million or more for a company and $1.565 million or more for an individual and/or 10 years in prison. The Fair Work Ombudsman will be responsible for investigating possible wage theft cases.

These are very hefty penalties indeed. No one wants to be at the pointy end of these new laws therefore, in my opinion, reviewing your payroll set-up now and ensuring it is completely compliant, would be a good idea. To that end, conducting a payroll audit is necessary.

How to Audit Your Payroll Set-up

A payroll audit includes a review of payroll practices, systems and outcomes, all underpinned by complex regulations that vary at the federal, state and territory levels. It looks at employee classifications, pay rates, entitlements, and record-keeping.

The Fair Work Ombudsman has provided a step-by-step guide to auditing your payroll. You can download it here. The guide assists in reviewing payroll records, assessing the findings and finally, providing solutions for any issues raised.

Further to the above guide, the Australian Payroll Association recommends taking these 5 steps to assist with the audit process:

  1. Engage a Specialist – a payroll specialist can review your current set-up and identify any gaps or areas of risk that require addressing.
  2. Educate your Team – make sure your team is across the new Wage Theft Legislation. Provide training and education in any areas of payroll legislation in which your team are lacking.
  3. Leverage Technology – Modern payroll systems help avoid non-compliance issues. If your payroll technology is outdated or not up to par with Australian requirements, consider upgrading to a system that automates calculations and processes for better compliance.
  4. Document Everything – Ensure all payroll processes are well-documented and records are meticulously kept to prove compliance, aid transparency, and defend your organisation in disputes.
  5. Regular Reviews – Once your payroll is fully compliant, ensure regular payroll audits are conducted to catch and correct any discrepancies before they create significant issues.

With the introduction of Wage Theft Legislation, employers are encouraged to be proactive and conduct a thorough payroll audit to ensure compliance. Doing this now, and making it a regular process going forward, will ensure that employers are well-placed to avoid becoming embroiled in criminal proceedings and potential sanctions.

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    What NOT to include in payslips for paid Family & Domestic Violence Leave

    BAS Agent's Blog, Payroll & Superannuation / By / / , , , / 2 minutes of reading

    Here is a reminder that access to paid family and domestic violence leave for employees of non-small business employers (employers with 15 or more employees) began on 1st February 2023 (and 1st August 2023 for small business employers). The leave is for 10 days for any full, part-time or casual employees and is not pro-rated. Read more about this new leave type in our previous blog here.

    Something important to call out in relation to paying this leave is the information that is prohibited from being included on the employee’s payslip. 

    Employers must not include:

    • A statement that an amount paid to an employee is a payment in respect of the employee’s entitlement to paid family and domestic violence leave
    • A statement that a period of leave taken by the employee has been taken as a period of paid family and domestic violence leave
    • The balance of an employee’s entitlement to paid family and domestic violence leave

    The reason for not including this information is that if a perpetrator of violence gains access to the employee’s payslip and sees that this type of leave has been taken, this may pose a significant risk to the employee.

    When setting up this type of leave in the payroll system, it is important to give it a generic name that does not reference the words “Family and Domestic Violence Leave”. In fact, not calling it “leave” at all is best practice. Given the payment is for an employee’s full rate of pay for the hours he/she would have worked if they weren’t on leave, then simply producing a payslip that shows “gross” pay, is recommended. In the back end of the payroll setup, details can be added noting what the payments actually are, and leave entitlement balances can be recorded but not included on the payslip (simply uncheck that box in the employee’s payroll setup (software-dependent)). 

    Precluding statements about this type of leave on an affected employee’s payslip is now part of the Fair Work Legislation Amendment Regulations 2022. Employers must take note and ensure that their payroll systems are set up correctly to reflect these amendments. Failing to do so may/will put affected employees at significant risk. If you are an employer, make sure you action this now (or by August 2023 if you are a small employer).

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    Quick-start guide for new employers

    BAS Agent's Blog, Payroll & Superannuation / By / / , , , , , , , / 4 minutes of reading

    So you’re going to start employing staff. That’s great, this usually means your small business is booming, so well done to you! Before you don your employer’s hat however, you need to make sure that you have all of your ducks in a row. There are quite a few things you need to do so to that end, we have created a quick-start guide for new employers. Our guide will tell you what you need to know, supply crucial documents and provide links to important information. Pop this blog link in your favourites for quick access as you will find it useful each time you on-board a new staff member.

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    What information must be on a payslip?

    BAS Agent's Blog, Bookkeeping, Payroll & Superannuation / By / / , , , / 2 minutes of reading

    If you’re an employer, you’re probably across how payslips work right? For instance, you already know that you must give employees payslips within 24 hours of paying them and that you can provide payslips in electronic or hard copy format. So that’s it right? That’s all you need to know – well, not exactly! Did you know that Fair Work has specific requirements in terms of what information should be reported on a payslip? Do you know if your payslips are compliant? Not sure? Here is a list of items that you must include on payslips (followed by some items that don’t have to be included, but should be!)

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