A frequently asked question when it comes to managing staff is: “We always hear about following the law in terms of ‘salary & conditions’ but what exactly is ‘salary & conditions’ and where does the law fit?”
The following is a useful summary of the main areas covering payments and conditions, plus key points for you to consider.
PAY – Paying employees covers the following areas:
* Payment of regular wages and salaries, as required by legislative minimum standards, awards, agreements, and individual contract terms
* Overtime pay
* Load shift and allowances
* Other benefits, such as first aid, travel, entertainment
* Salary packaging – provides other benefits as a component of the overall remuneration package
* Income tax deduction from employee salary
* Other deductions from salary as permitted by the employee
* Bonuses, commissions and other incentive payments
* Carry out garnishee orders – where the court orders deductions from the employee’s salary to be made to the party who obtained the court order
* Provide salary slips to employees explaining full details of salary and deductions (including taxes)
* Maintenance of payroll records in accordance with the law.
CONDITIONS – ‘Conditions’ refers to the working conditions and rights of the employee. The broad areas covered include:
* Hours of work – includes full-time versus part-time work, casual work, regular hours, overtime, non-standard hours (such as working weekends or evenings or working on holidays), shift work, fixed time/fixed project contracts, flexible working hours, scheduled holidays, meal breaks, rest periods, standby/callback provisions, travel time to/from work.
* Leave – includes annual leave, personal/caregiver leave, unpaid caregiver leave, compassionate leave, unpaid parental leave (including maternity leave, paternity and adoption leave) extended service leave and military service leave, all of which is a basic right available to all employees who qualify for them. Other forms of leave that employers usually provide to employees include study leave, emergency leave, cultural/ceremonial leave and unpaid leave.
* National holidays – employees are entitled to public holidays. If the employer requires them to work those days, they may be entitled to payment of the penalty rate and/or other benefits (such as paid leave in lieu at a later date).
Important Points to Remember About Payments and Terms
Be Proactive: Fulfilling obligations with respect to employee salaries, working conditions, behavior and work performance first involves compliance with all applicable legal requirements in this area. However, it also involves being proactive: providing a supportive workplace and work culture, attracting workers to your business early on, encouraging good employees to stay in your organization and acting immediately if problems arise – to prevent or minimize adverse consequences.
Realize Legal Obligations: The first step is to be fully aware of all the legal obligations you have to fulfill. It covers the following areas: employee pay, hours worked, leave entitlements, holidays, hours worked, etc. Study the documents that affect these areas – laws, awards and agreements, individual employment contracts and organizational policies/procedures – and establish a compliance system that ensures that you continue to comply and can keep up with any changes that occur, such as new laws and regulations. common law.
Policies and procedures: Many aspects of employee behavior and performance are covered by workplace policies and procedures, such as the vacation list policy, the Work-Life Balance policy, and the Company Car policy. Prepare policies that cover various issues in your business, support them with procedures (which are steps to put the policy into practice) and make sure the policies are widely publicized, explained to employees, and for employees to understand them clearly. Many employers refer to these policies and procedures in their employment contracts. However, to reduce the risk of breach of contract claims, you should avoid making them a condition of the contract. Very small businesses may find putting together multiple policies as unwieldy and unnecessary. However, court cases state that even the smallest business should have a policy. If you are unsure which policy is appropriate for your business, you should seek advice.
Get Market Price by Paying: To ensure you remain competitive as an employer, survey the salary levels and other conditions offered by competing companies in your industry or region. Surveys are commercially available from sources such as employers’ organizations and recruitment agencies/consultants, or you can make informal ‘information exchange’ arrangements with other employers. In return, you must be willing to participate in surveys and provide data about your own organization’s salary rates and terms.