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Rob Sheppard & Elisia CoEtZEE

Founders of Quantum HR introduces the changes in Industrial Relations that may affect you as a business owner in Australia. 

Hi, I’m Rob Shepperd from Quantum Human Resources and we’ve been invited in today to have a chat to you around some of the changes that have been happening in industrial relations here in Australia. we’ve got a lot of experience. my partner you’ll hear from very shortly. We have worked in private business and we’ve been running a consultancy now for many, many years. And we’ve seen a lot of the issues that you’ll hear about today in practicality. So to summarize what we want to get from this conversation today is an overview of why this is important and why we need to be listening in to go through just some of the practical changes that have been put into the legislation. And by the way, not a lot of that came through, which is just some good news or bad news, depending on the side of the fence you sit and then summarize some of the things you can be doing to make sure that you’re compliant and also being practical in how you engage with your workforce. So I’d like to start just with some of the reasons for why this change has come around. So we’re all familiar with the pandemic, which we’ve been living with for over 12 months now and back in may of last year.

So 2020, the prime minister got up and said time for some changes to the industrial relations system. It’s complicated, which I agree with. If you go back even further, the president of the fair work commission had stood up and it was on record as saying the industrial relations system in Australia is complicated. Well, if that’s the head of the organization looking after this, you can bet your bottom dollar. It’s going to be complicated for the lay person, but if it come back, so the prime minister stood up and said, we’ve got to make some changes.

If we go back even further, some of the changes that were proposed, we’re actually already in training. I think the pandemic brought this forward a little bit more quickly, and we find that depending on which side of the political spectrum, you may sit there either good changes or bad changes. And we fast forward to 2021 and we come up to, just a month ago and the changes were passed by both houses of the parliament. the changes were dramatically stripped back. And again, depending on which side of the spectrum you sit, that’s a good thing or a bad thing. but at the end of the day, the focus now came back down to casual employees, very much so in the legislation. And there’s a reason for that as well. There were some case law back in 2018, which talked around why casualized work workforces were potentially a liability to, to employers and if I take that side of the fence for a moment, there was this concept of double-dipping you might have heard and that double-dipping meant that a casual could successfully claim that there were, entitlements that, that were there. So the legislation was already in train, but we get to this year where it’s been past stripped back as it were and we find ourselves with some, some potential minefields that we need to walk through. It is complicated, but with a bit of a insight, a bit of reaching out to, to talk to people and using the resources out there, we can get to a stage where it should be reasonably seamless to get through. and that’s the, the point of what we’re going to be talking around today. So to summarize, we will talk around why there was this needs to change, what has actually changed and what we can do about it at the end of the day. So thanks for listening and we’ll see you soon.

Don’t forget to tell Rob how you found his contact details through this webinar in your connection request!

CONNECT HERE

 

Hi, good day. My name is Elisia and I’m one of the directors at Quantum Human Resources. We are here today to talk a little bit about the recent changes in the legislation for industrial relations. We have lots of experience, lots of years of experience in practical human resources and we are looking forward to help you look through it step by step and give you practical advice and how to stay out of trouble when it comes to especially rules around casualization.

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Download the worksheet mentioned in this webinar.

Darren ELLIS

Founder of Eagle Shared Services discusses what the changes in fair work legislation mean for payroll processing. 

Hi everyone. My name is Darren Ellis from Eagle Shared Services and I’m here today to talk to you a little bit about what the changes in fair work legislation, mean from a payroll processing perspective. And just before we drill down into that, I’d probably just like to share with everybody that, you know, I have over 30 years experience in this area and particularly with software design accounting and accounting systems.

What I’d like to do is look at this from not a software specific perspective, but actually a more software independence. So you’re still would translate back to your individual platforms. We look at the basic payroll system, you have some kind of rostering or agreements that have standing pieces what should happen or what the employees are supposed to do next to that. We have a time sheeting or tracking system, which would then track what actually did happen and sometimes that brings in a little bit of a leave planner and things like that. Ultimately then your payroll processing team, they take all that information, bring it together with the awards and their agreements and everything else, and actually then process the pace. So what’s going to change when we look at the legislation. So there’s a couple of pressures that particularly near and dear to a number of my clients and people I know. And that’s the casuals. So things again, and need to look at is you’re going to need to run some reports from your system to drill down on the casual employee, see what hours they’ve been working, what the classification is when they actually started and so forth, because this is very, very vital for importantly, has your payroll system being tracking the casual loaded rates Cause that’s a key point in the legislation.
When you try to look at converting them to casual, you’re trying to unravel it. If the worst case scenario occurs, there’s a dispute. Someone wants to go and take you to cause there’s hang on. I was employed. Part-time full-time whatever the case might be. They want to sit and then move forward from that. So ultimately, what was antifreeze is your panel system tracking this information The advocate point I’d like everybody to look at doing is actually runs the reports to see if there’s a pattern of hours. This will help you work out where your risk categories are, but not only that you want to build some Intel off okay. At a time. So that’s a little bit of a, I think there’s is a checklist which are all day with paper at the end of this. But however, we just do the key points. The advocate changes the onboarding process with casuals.
So from the 27th of March, correct me if I’m wrong, but then you needed handout a C I S agile employment information statement. So this is something that you actually physically have to give to your employees. They can email it if they agree. And there’ll probably be some movement in that, but effectively printing out the form and giving it to him person and even working through what it means to be a casual employee. So there’s no confusion. More importantly, your employment agreements, as Rob had already mentioned, you need to have that building to them. Okay. So that’s the pain point. The other thing is when these change people don’t like change. Yeah. Would you all agree I mean, I like things to stay the certain the same for a certain period of time so I can get used to it. So I think from the perspective of your employees, what you really should put together, and if you don’t already have the infrastructure, it’s an employee support platform.
Yep. These days and the wonderful wonders world of Google and technology and online, many companies have online employee support platforms as one option. we do as part of the Eagle offering. However, you might look at how you think about that strategically so that you can deal with the factor of missing information and things that, you know, cause you staff up late at night, like, Oh, what am I going to get sacked Or what’s going to happen with this casual conversion Or some might say, Oh, you’re going to get casual plus an extra rate. There’s a lot of challenges that is going to cause people to do their heads in. So if you’ve got a 24 seven platform that can feel a pressure point. So the catch sees things and go, Hey bro, I’ve got them. I’m up at night, I’ve email or something there.
You know, if you really got advanced tech, you might have a bot all of these to diffuse the stress. So when the person rocks out for work, they’re not in an agitated state, but more importantly, you’re showing as an employee that you care about what’s going on. So that’s, that’s an important point. The last thing I’d like to highlight with your payroll system is record keeping, record keeping and okay. Record keeping because really secretly a lot of businesses and softly platforms in the past only keeping information for a certain period of time. Many people forget to dump that information. We’ll keep it in a long-term storage or what I like to call a long-term archive. So as a result, having a system set out to do that it’s information for multiple years, for example, the long service leave, they can go back 10, 20, 15 years.
Most of the current modern software systems only keep records for roundabout two or three years for guys through some archiving process. So the key takeaway here, the more information you can keep online in an indexed format, the better. So you might want to do a little bit of a, I don’t know, we’ve got a checklist for that as well, of course, where we can run through. And you know, these are the things you should be keeping for a longer period of time. Cause tax records, if you’re a business it’s only five years from when you lodge your last tax return, however, employee dispute some wage, issues that can actually go back six to seven years and even longer, depending on the nature of the dispute. So you do need to think about what your record keeping systems doing finally, to wrap it all out, you need to look at how this all goes together.
So you need to start it. Well, holistic approach is where I mentioned earlier. You want to think straight up, hang on. Why are we going casuals You know, okay, we were doing that this way. I’m in a business model change. So you probably now using casuals because you were always doing casuals, but when you rethink your business model, you might be going to hang on. We probably don’t need as many casuals. So now’s a good time to go through and look at that from a strategic perspective, that’s something else I can help with you with that he is experienced in business. So just wrapping up the key points here, time and wages tracking. You know, if you don’t have an effective attendance and time tracking system, look at the investing in one, secondly, a good review of your payroll platform what’s going on. And finally consider this staff in all of these because they going to be the ones who are going to be most impacted.
Well, there’s many things that can derail you and on maybe we should have an entire conversation about the boot test, but low needed to say, what you really need to do there is if your system is tracking all the information, then going back was in checking with you, meet the minimum, and boot bod boot, excuse the acronyms, federal five, all tasks. If you’re paying employees on a ward, then you need to be able to show that you had demonstrate you have methods requirements. And then sometimes even if there’s a birthday or if there’s a change in rate or roll by, they might go from a level one to a level two. And you miss that. You need to be able to go back and fix that and do back pay calculations. And that was actually a pointing point from employees going forward in the original legislation for a got released, there was going to be criminalization of underpayment of wages.
What that meant is you can actually be held criminally liable and end up with penalty points, which if you’re a director of a company or an accountant, an accounting firm, that’s a big thing or a doctor or a lawyer or a pharmacist, then this could be really, you know, for your career. And you’re thinking, well, everything’s being done right. Is it so really steeply What you needed to make sure is going forward that particular fracking of time away just is vital. So if your system’s not doing it, it’s time to look at ways of doing that going forward. You don’t need to reinvent the wheel, but you do need to weave this into how your system operates. And on top of that, the were of criminalization wedges. Didn’t get up rest assured that that will come back because as we transitioned out of COVID and a lot of things change, there’ll be a lot more focus on what people have versus those that don’t have.
And that will create a lot of people having conversations that misinformation can pop up. And once again, this is where your employee portal comes in. I can log on, check it that had a pop conversation. Are you, I should be getting this. This is on a, it says here, and I could see the award and so forth. So that’s pretty much it for me. I must’ve been, I could talk for hours about this particular topic because it’s near and dear to my heart. However, thank you very much for your time. And I’d like to see what you think.

Don’t forget to tell Darren how you found his contact details through this webinar in your connection request!

CONNECT HERE

Download the worksheet mentioned in this webinar.

ROUND TABLE DISCUSSION

Introducing Rob Sheppard,  Elisa Darren Ellis

Hi everyone. My name is Darren Ellis from Eagle Shared Services and I’m here today to talk to you a little bit about what the changes in fair work legislation, mean from a payroll processing perspective. And just before we drill down into that, I’d probably just like to share with everybody that, you know, I have over 30 years experience in this area and particularly with software design accounting and accounting systems.

What I’d like to do is look at this from not a software specific perspective, but actually a more software independence. So you’re still would translate back to your individual platforms. We look at the basic payroll system, you have some kind of rostering or agreements that have standing pieces what should happen or what the employees are supposed to do next to that. We have a time sheeting or tracking system, which would then track what actually did happen and sometimes that brings in a little bit of a leave planner and things like that. Ultimately then your payroll processing team, they take all that information, bring it together with the awards and their agreements and everything else, and actually then process the pace. So what’s going to change when we look at the legislation. So there’s a couple of pressures that particularly near and dear to a number of my clients and people I know. And that’s the casuals. So things again, and need to look at is you’re going to need to run some reports from your system to drill down on the casual employee, see what hours they’ve been working, what the classification is when they actually started and so forth, because this is very, very vital for importantly, has your payroll system being tracking the casual loaded rates Cause that’s a key point in the legislation.
When you try to look at converting them to casual, you’re trying to unravel it. If the worst case scenario occurs, there’s a dispute. Someone wants to go and take you to cause there’s hang on. I was employed. Part-time full-time whatever the case might be. They want to sit and then move forward from that. So ultimately, what was antifreeze is your panel system tracking this information The advocate point I’d like everybody to look at doing is actually runs the reports to see if there’s a pattern of hours. This will help you work out where your risk categories are, but not only that you want to build some Intel off okay. At a time. So that’s a little bit of a, I think there’s is a checklist which are all day with paper at the end of this. But however, we just do the key points. The advocate changes the onboarding process with casuals.
So from the 27th of March, correct me if I’m wrong, but then you needed handout a C I S agile employment information statement. So this is something that you actually physically have to give to your employees. They can email it if they agree. And there’ll probably be some movement in that, but effectively printing out the form and giving it to him person and even working through what it means to be a casual employee. So there’s no confusion. More importantly, your employment agreements, as Rob had already mentioned, you need to have that building to them. Okay. So that’s the pain point. The other thing is when these change people don’t like change. Yeah. Would you all agree I mean, I like things to stay the certain the same for a certain period of time so I can get used to it. So I think from the perspective of your employees, what you really should put together, and if you don’t already have the infrastructure, it’s an employee support platform.
Yep. These days and the wonderful wonders world of Google and technology and online, many companies have online employee support platforms as one option. we do as part of the Eagle offering. However, you might look at how you think about that strategically so that you can deal with the factor of missing information and things that, you know, cause you staff up late at night, like, Oh, what am I going to get sacked Or what’s going to happen with this casual conversion Or some might say, Oh, you’re going to get casual plus an extra rate. There’s a lot of challenges that is going to cause people to do their heads in. So if you’ve got a 24 seven platform that can feel a pressure point. So the catch sees things and go, Hey bro, I’ve got them. I’m up at night, I’ve email or something there.
You know, if you really got advanced tech, you might have a bot all of these to diffuse the stress. So when the person rocks out for work, they’re not in an agitated state, but more importantly, you’re showing as an employee that you care about what’s going on. So that’s, that’s an important point. The last thing I’d like to highlight with your payroll system is record keeping, record keeping and okay. Record keeping because really secretly a lot of businesses and softly platforms in the past only keeping information for a certain period of time. Many people forget to dump that information. We’ll keep it in a long-term storage or what I like to call a long-term archive. So as a result, having a system set out to do that it’s information for multiple years, for example, the long service leave, they can go back 10, 20, 15 years.
Most of the current modern software systems only keep records for roundabout two or three years for guys through some archiving process. So the key takeaway here, the more information you can keep online in an indexed format, the better. So you might want to do a little bit of a, I don’t know, we’ve got a checklist for that as well, of course, where we can run through. And you know, these are the things you should be keeping for a longer period of time. Cause tax records, if you’re a business it’s only five years from when you lodge your last tax return, however, employee dispute some wage, issues that can actually go back six to seven years and even longer, depending on the nature of the dispute. So you do need to think about what your record keeping systems doing finally, to wrap it all out, you need to look at how this all goes together.
So you need to start it. Well, holistic approach is where I mentioned earlier. You want to think straight up, hang on. Why are we going casuals You know, okay, we were doing that this way. I’m in a business model change. So you probably now using casuals because you were always doing casuals, but when you rethink your business model, you might be going to hang on. We probably don’t need as many casuals. So now’s a good time to go through and look at that from a strategic perspective, that’s something else I can help with you with that he is experienced in business. So just wrapping up the key points here, time and wages tracking. You know, if you don’t have an effective attendance and time tracking system, look at the investing in one, secondly, a good review of your payroll platform what’s going on. And finally consider this staff in all of these because they going to be the ones who are going to be most impacted.
Well, there’s many things that can derail you and on maybe we should have an entire conversation about the boot test, but low needed to say, what you really need to do there is if your system is tracking all the information, then going back was in checking with you, meet the minimum, and boot bod boot, excuse the acronyms, federal five, all tasks. If you’re paying employees on a ward, then you need to be able to show that you had demonstrate you have methods requirements. And then sometimes even if there’s a birthday or if there’s a change in rate or roll by, they might go from a level one to a level two. And you miss that. You need to be able to go back and fix that and do back pay calculations. And that was actually a pointing point from employees going forward in the original legislation for a got released, there was going to be criminalization of underpayment of wages.
What that meant is you can actually be held criminally liable and end up with penalty points, which if you’re a director of a company or an accountant, an accounting firm, that’s a big thing or a doctor or a lawyer or a pharmacist, then this could be really, you know, for your career. And you’re thinking, well, everything’s being done right. Is it so really steeply What you needed to make sure is going forward that particular fracking of time away just is vital. So if your system’s not doing it, it’s time to look at ways of doing that going forward. You don’t need to reinvent the wheel, but you do need to weave this into how your system operates. And on top of that, the were of criminalization wedges. Didn’t get up rest assured that that will come back because as we transitioned out of COVID and a lot of things change, there’ll be a lot more focus on what people have versus those that don’t have.
And that will create a lot of people having conversations that misinformation can pop up. And once again, this is where your employee portal comes in. I can log on, check it that had a pop conversation. Are you, I should be getting this. This is on a, it says here, and I could see the award and so forth. So that’s pretty much it for me. I must’ve been, I could talk for hours about this particular topic because it’s near and dear to my heart. However, thank you very much for your time. And I’d like to see what you think.

Don’t forget to tell Darren how you found his contact details through this webinar in your connection request!

CONNECT HERE

Download the worksheet mentioned in this webinar.

a collaboration of experts

Darren Ellis

eagle shared services

Darren has 30 years of experience as a trusted advisor helping businesses with their processes such as bookkeeping, payroll and managerial accounting.

Rob Sheppard

quantum hr

Rob has 20 years experience leading and managing frontline human resources (HR) and recruitment functions of multi-discipline teams across national and international locations.

Elisia Coetzee

quantum hr

Elisia is a respected HR & IR
Specialist and Leadership Coach with 20 years plus experience in a broad range of human resources and industrial relations fields.