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
Showing posts with label Australian Industry Group. Show all posts
Showing posts with label Australian Industry Group. Show all posts
Wednesday, May 4, 2011
Thursday, November 25, 2010
Extra Christmas Holiday? Penalty Rate confusion continues...
Political pressure to protect Christmas Day penalty rates continues to mount amid confusion over different approaches adopted by the states.
Previously when Christmas Day has fallen on a weekend, workers received penalty rates on substitute public holidays the following week.
Governments in NSW, Queensland, Western Australia, NT and Tasmania have already moved to pay workers Christmas Day penalty rates in addition to penalty rates for working on Monday, December 27. While the ACT, South Australian and Victorian governments have so far refused.
Confused yet? You’re not the only one!
The Australian Industry (Ai) Group told a Fair Work Australia hearing in Melbourne, on Wednesday, that there was potential for "public holiday chaos", with six states adopting five different approaches. Chief executive Heather Ridout said in a statement the submission was made to "avoid unnecessary cost and confusion".
The Ai Group argues that penalty rates should be paid on substitute public holidays and not on Christmas Day, Boxing Day, New Year's Day and Australia Day when they fall on weekends.
However, the Australian Greens have pushed the Federal Parliament to introduce a common standard across the country, whereby public holiday penalty rates are paid to all workers rostered to work on Christmas Day, regardless what day of the week it falls on.
Greens leader Bob Brown said it was unfair that workers in some areas be penalised just because their state hasn't set up fair treatment on penalty rates.
"People need fair compensation for giving up time with family and friends at Christmas," Senator Brown said.
From a business perspective, the continuing chaos over Christmas holiday trading leaves employers with a staff rostering nightmare. “Employers, struggling to manage Christmas and New Year rosters don’t know when penalty rates would apply, either for the weekend itself, or the substitute day, or for both”, advised Senator Abetz, Opposition Leader of the Senate.
For retailers the costs are significant, with Coles Supermarkets warning the NSW Government that it will lose $15 million in sales due to the current structure of the state's public holiday schedule, which will prohibit it from opening on Boxing Day.
The Ai Group's application, if successful, would offset any legislation passed by state governments.
Read more:
News.com.au, Smart Company, Herald Sun
Whatever the decision, Mitrefinch's Time Management System (TMS) takes the stress out of employee allowances and entitlement calculations via an in-built, fully customisable Award Interpreter. Easily 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.
For more information contact Mitrefinch Sales on 1300 884 831 or visit Mitrefinch Online
Previously when Christmas Day has fallen on a weekend, workers received penalty rates on substitute public holidays the following week.
Governments in NSW, Queensland, Western Australia, NT and Tasmania have already moved to pay workers Christmas Day penalty rates in addition to penalty rates for working on Monday, December 27. While the ACT, South Australian and Victorian governments have so far refused.
Confused yet? You’re not the only one!
The Australian Industry (Ai) Group told a Fair Work Australia hearing in Melbourne, on Wednesday, that there was potential for "public holiday chaos", with six states adopting five different approaches. Chief executive Heather Ridout said in a statement the submission was made to "avoid unnecessary cost and confusion".
The Ai Group argues that penalty rates should be paid on substitute public holidays and not on Christmas Day, Boxing Day, New Year's Day and Australia Day when they fall on weekends.
However, the Australian Greens have pushed the Federal Parliament to introduce a common standard across the country, whereby public holiday penalty rates are paid to all workers rostered to work on Christmas Day, regardless what day of the week it falls on.
Greens leader Bob Brown said it was unfair that workers in some areas be penalised just because their state hasn't set up fair treatment on penalty rates.
"People need fair compensation for giving up time with family and friends at Christmas," Senator Brown said.
From a business perspective, the continuing chaos over Christmas holiday trading leaves employers with a staff rostering nightmare. “Employers, struggling to manage Christmas and New Year rosters don’t know when penalty rates would apply, either for the weekend itself, or the substitute day, or for both”, advised Senator Abetz, Opposition Leader of the Senate.
For retailers the costs are significant, with Coles Supermarkets warning the NSW Government that it will lose $15 million in sales due to the current structure of the state's public holiday schedule, which will prohibit it from opening on Boxing Day.
The Ai Group's application, if successful, would offset any legislation passed by state governments.
Read more:
News.com.au, Smart Company, Herald Sun
Whatever the decision, Mitrefinch's Time Management System (TMS) takes the stress out of employee allowances and entitlement calculations via an in-built, fully customisable Award Interpreter. Easily 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.
For more information contact Mitrefinch Sales on 1300 884 831 or visit Mitrefinch Online
Subscribe to:
Posts (Atom)