Recap

As with most new calendar or financial years, there is movement in the industrial relations landscape.

The purpose of the below is to provide you with the key dates for 2014 (some past and others upcoming) and to succinctly set out suggested action items to assist you with identifying what changes you may need to make in your workplace:

1 January 2014

(1)          new bullying laws commenced – action items include:

·                    be familiar with how the new bullying laws operate and who they apply to

·                    prepare/update existing bullying policies and complaints procedures to be consistent with the legislation

·                    refer to guides on bullying provided by Safe Work Australia

·                    as necessary update and amend references to bullying in other policies (such as WHS policies)

·                    train management staff on the new laws

·                    implement policies with staff and keep evidence of receipt of the policies/attendance at information sessions explaining these policies

(2)          other changes:

·                    altered union right of entry provisions

·                    new rules relating to consultation about changes to rosters and working hours

·                    consent arbitration for general protections (adverse action) and unlawful termination claims

action items include:

·                     be familiar with the new requirements including checking the consultation requirements in the relevant Modern Award

·                    considering the advantages and disadvantages of consent arbitration in the Fair Work Commission for general protection and unlawful termination claims

(3)          4 yearly review of Modern Awards commenced – action items include:

·                    make submissions as part of the review (if you wish)

·                    consistently check the Fair Work Commission website for information (the review is expected to be completed mid 2015)

12 March 2014

(4)          new privacy laws commenced – action items include:

·                    be familiar with how the new privacy laws operate and who they apply to

·                    prepare/update existing privacy policies to be consistent with the legislation

·                    check you know how "employee records" are dealt with

·                    update staff, customers and suppliers as necessary (including in respect of terms of trade and credit applications)

1 July 2014

(5)          the redundancy tax free component increases to $9,514 and $4,758 for each completed year of service – action items include:

·                     make sure all redundancies comply with Taxation Ruling 2009/2

·                     make sure all redundancies meet the requirements to satisfy the exception to a valid unfair dismissal claim (in addition to any other possible exception)

(6)          the compulsory superannuation rate increases to 9.5% - action items include:

·                    implement the change with payroll

·                    consider whether you factor this into salary review considerations

(7)       increase to the high income threshold to $133,000 – action items include:

·                    knowing employees not covered by a Modern Award or to whom an enterprise agreement does not apply must earn less than this amount to bring a valid unfair dismissal claim

·                    knowing the maximum compensation payable in an unfair dismissal claim is the lesser of 26 weeks' pay or half of the high income threshold

·                    ensuring the annual rate of the guarantee of annual earnings for those with a Guarantee of Annual Earnings continues to exceed this amount

·                    knowing not all aspects of an employee's remuneration counts towards working out if this amount is breached (both for unfair dismissal and Guarantee of Annual Earnings purposes)

(8)       remuneration changes:

·                    Modern Award wage increase by 3% (as and from the first full pay period after 1 July 2014) – this extends to junior employees, employees to whom training arrangements apply and employees with a disability and to the operation of piece rates through the operation of methods applying to same

·                    Modern Award allowances increase (by reference to the relevant CPI group mentioned in the relevant Modern Award)

·                    National Minimum Wage increases to $640.90 per week ($16.87 per hour) – applicable to those not covered by a Modern Award or to whom an enterprise agreement does not apply

·                    casual loading is increased to 25% - applicable to those not covered by a Modern Award or to whom an enterprise agreement does not apply

·                    end of transitional wage, loading and penalty rate adjustments under Modern Awards

action items include:

·                    check whether you can absorb increases under the terms of the Modern Award (absorption clause) or the terms of the employment agreement (set-off clause)

·                    ensure all payments meet the minimum wage requirements

31 December 2014

(9)       transitional redundancy provisions under Modern Awards end – action items include:

·                    making an employee redundant as and from 1 January 2015 may require a lesser amount of redundancy pay to be paid than doing so before that date

(10)     transitional accident pay provisions under Modern Awards end – action items include:

·                    work out if this applies to any injured employees and make necessary pay adjustments as and from 1 January 2015

Conclusion

That is a snapshot of the current landscape – as with all changes, the finer detail always needs to be considered including in conjunction with your particular workplace situation.

If you do have any questions, please feel free to speak with or email a member of our Workplace Solutions team headed up by:

Stewart Gough – Director stewartg@matthewsfolbigg.com.au

Fay Calderone – Director fayc@matthewsfolbigg.com.au