Monday, May 16, 2011

Fair Work Ombudsman awards Wollongong truck driver $11,500

Payroll News reports that a truck driver in Wollongong has been back-paid $11,500 following an investigation from the Fair Work Ombudsman.

Following a complaint lodged by the employee, Fair Work inspectors contacted the driver’s employer to clarify its obligations. The driver was subsequently back-paid three weeks’ sick leave and termination pay.

Fair Work Ombudsman Executive Director, Michael Campbell, advised, “We have a flexible, fair approach and our preference is always to work with employers to help them resolve any non-compliance issues we identify.”.

He added that the Agency places a strong focus on educating and assisting employers to understand and comply with workplace laws.

The business in question has now put processes in place to ensure the mistake is not repeated.

So how can other businesses ensure they don’t make similar mistakes?

Small to medium-sized businesses without dedicated HR staff can ensure they are better equipped to manage employees by using free employment documentation templates available through the Fair Work Ombudsman’s website.

A series of Best Practice Guides have also been developed by the Fair Work Ombudsman to assist employers make better use of the provisions of the Fair Work Act and better understand other aspects of workplace laws.

These guides cover work and family, consultation and co-operation, individual flexibility arrangements, employing young workers, gender pay equity, small business, workplace privacy, managing underperformance, effective dispute resolution, parental leave and improving workplace productivity in bargaining.

Businesses can also benefit from implementing an automated Employee Time Management System, which records employee attendance as well as automatically calculating specific pay scales, modern awards, pay penalties and overtime rates. This information is then uploaded directly to the organisation’s payroll system – enhancing the efficiency and accuracy of the pay run.

Real time Absence Management reports also allow management to view the Annual Leave and sick leave taken by employees to date, while Employee Self Service functionality enables staff to view accrued leave and request holidays with the click of a mouse.

For more information download Mitrefinch’s Free Guide to Implementing a Time and Attendance System. Alternatively feel free to call 1300
884 831 or email sales@mitrefinch.com.au to discuss in more detail.

Read the full article on Payroll News: http://www.payrollnews.com.au/AnnouncementRetrieve.aspx?ID=50565

Wednesday, May 11, 2011

Cooler temperatures mark the arrival of Sickie Season, is your business prepared for unplanned absence?

As Sydney shivered this week with the abrupt end to Autumn, did you notice an increase in the number of employees calling in sick?

While we don’t get the extreme snow experienced in the US and Europe, the drop in mercury can often tempt employees to hit the snooze button and take a “Duvet Day” or “Chuck a Sickie”.

In addition, with the cooler temperatures an increase in cases of genuine sickness, like influenza (Man Flu doesn’t count!), can result in an average of 3 days absence from work*.

This unplanned absenteeism is a major concern for many organisations and employers must consider both the direct and indirect costs incurred when an employee is absent. (Read More: Have you noticed a spike in sickies this week?)

As a result organisations need to be proactive and plan in advance to safeguard their business from the effects of Winter Absence.

So what’s the solution?

First things first, businesses need to establish an effective means of measuring and monitoring employee absence.

By effectively measuring absence and sickness in the workplace management can easily identify:
  • how often a worker is absent
  • how much working time has been lost
  • if there is any particular pattern forming (i.e. a particular worker regularly calls in sick on a Monday morning)
  • and where absenteeism occurs the most (i.e. within a particular department, team)

Armed with this valuable information, management can assess the extent of their absenteeism issues and decide on the best means of tackling the problem.

Clear policies and procedures for reporting sickness absence as well as dealing with unacceptable levels of absence must be established and communicated to all staff. This sends a clear message to employees that management take unplanned absence very seriously.

For example, making it mandatory for absent employees to speak directly to their line manager or supervisor and to attend a back-to-work interview on their return.

The introduction of flexible working arrangements and the opportunity to work from home may also help discourage employee’s from feigning illness to take a day off.

How might a Time and Attendance System help?

A Time and Attendance system is a powerful tool for analysing and managing employee time and the associated costs.

For example, the Mitrefinch Time Management system can record unplanned absences, holidays and paid parental leave, building a complete Employee Absence Profile for further analysis.

By measuring the work absences of individual employees the Mitrefinch Time Management System can identify how these absences impact the organisation's overall productivity, while real-time colour coded reporting allows management to quickly identify potential problem areas and resolve any issues before they get out of hand.

A built-in current and projected manpower planner also enables management to act or plan work schedules according to available resources, skills sets etc...

To faciliate flexi work patterns and working from home initiatives, Mitrefinch’s Mobile Time and Attendance solution provides employees with the ability to record their start and finish times, as well as allocating their time to specific jobs/projects regardless of where they choose to work from.

While, Employee Self Service functionality allows employees to check their own Annual Leave balances and request holidays. If they have accumulated a number of holidays they may be encouraged to book some time off as opposed to “Chucking a Sickie” or taking a self proclaimed “Duvet Day”!

For more information please feel free to call 1300 884 831 or visit us online.

Alternatively click here to download our Free Guide to Choosing an Effective Time and Attendance System.

* http://www.healthworks.com.au

Sunday, May 8, 2011

Ineffective Time and Attendance Management costs Levi Strauss $1million

Levi Strauss & Co has agreed to pay more than $1 million to about 600 employees after the U.S. Department of Labor found that the jeans maker failed to record all the hours employees worked in its payroll system.

An investigation by the labor department's San Francisco district office found that the company misclassified several groups of workers as been exempt from overtime, over a two-year period.

Levi Strauss has agreed to pay the overtime wages due to all its affected employees nationwide, and upgrade its time and attendance system.

Read full article here: http://us.mobile.reuters.com/article/idUSTRE72S6Y020110329?ca=rdt

How to learn from Levi Strauss & Co’s mistake...

One of the primary reasons why companies invest in a Time and Attendance Solution is to automate the capture and management of all employees’ clocking in and out times. This automatic capture ensures that organisation can comply with all federal and state workplace legislation, such as employee entitlements and modern awards, without having to manage mountains of administrative paperwork.

A customised scheduling function also allows businesses to separate work groups that are on different pay scales. Weekly, bi-weekly or monthly schedules can also be based on pre-defined budgets to keep payroll costs as low as possible.

Download our Free Guide on "How to Choose the right Time and Attendance System for your Business".

Alternatively, to find out more about Mitrefinch’s Time and Attendance Solutions, please visit www.mitrefinch.com.au or call 1300 884 831 today.

Wednesday, May 4, 2011

Sham Contracts still rife with two companies set to face court next month

Some companies still aren't getting the message, with two call centre service providers set to face court after the Fair Work Ombudsman accused them of breaking "sham contracting" guidelines.

The organisations in question are being accused of breaching a number of workplace laws,
by employing 10,000 call centre workers and door-to-door sales people as contractors, resulting in "massive underpayments".

The Ombudsman defines sham contracting as an employer disguising or misrepresenting an employment relationship as an independent contracting arrangement, thereby avoiding employee entitlements such as minimum pay rates and leave entitlements.

Speaking at the Australian Industry Group's workplace conference earlier this week, Fair Work Ombudsman Nicholas Wilson, stressed that while hiring independent contractors is not illegal, if an organisation sets out to evade their workplace relations responsibilities, by using commercial processes to find a business partner who will undercut established minimum wage rates, then that may be considered unlawful.

"The pretence that commercial negotiations can procure below award wages or that the cover of an ABN can avoid an employment arrangement are merely that – pretences. And they are pretences that can have significant consequences," he added.

In March, the Ombudsman warned that it would be cracking down on sham contracting in the health and beauty, cleaning, and call centre industries.

That same month, a Brisbane call centre company and its director were fined $214,500 for sham contracting and underpayments while the Construction, Forestry, Mining and Energy Union also threatened industrial action against developers and builders that engage staff as ''sham contractors'', which is believed to account for up to 168,000 workers
(See Blog Post: Employers shirk Employee Obligations).

Read the full story: http://www.smartcompany.com.au/industrial-relations/20110503-fair-work-ombudsman-claims-two-companies-labelled-10-000-workers-as-sham-contractors.html

Avoid your business being branded a sham

Ensuring that you are compliant with penalty rates and modern awards can represent a major headache for many organisations, but you don't need to evade the law to avoid the stresses of Award Interpretation and Employee Time Management processes.

An effective Employee Time Management System can do all the hard work for you via an in-built, fully customisable Award Interpreter.

Calculate base and overtime pay, weekend and public holiday penalties, as well as leave loading and shift penalties, ensuring consistent application of your business rules. A direct interface to your external payroll application further reduces payroll administration and the potential for costly payroll errors.

If you would like discover how your organisation can benefit from more efficient Award Interpretation and effective Employee Time Management download our Free Guide on How to Choose a Time and Attendance System.

Alternatively feel free to contact Mitrefinch today on 1300 884 831 or email sales@mitrefinch.com.au