June 23, 2021

2021 EOFY Update

An EOFY update from the HR Dynamics team

Hi

And here we are, once again in the race to end of financial year, it feels like so much has changed, yet so much is still the same. We are still seeing Covid pop its ugly head up every other week…. Just when we think that things are back to normal, there is another case, another scare, another lockdown, more cancellations and fear and travel seems like a distant dream.  It’s a credit to so many businesses this year that that just get on with it, adapted to yet again to another changing environment and continue doing what they do. A Covid upside is that businesses are more nimble and able to meet changing environments faster than ever before.

New Guide for Small Business 

Industrial relations continues to be a hotly debated topic in the national media and parliament – I noticed on the Channel 7 interview with the Federal Treasurer this morning there is a new guide being released for small businesses to be able to navigate their workplace relations requirements in an easier way. We will keep you posted on this as more information is released. Any assistance for small business is welcomed.

Casual Employment 

As you will be aware from past mail outs – there were substantial changes made to casual employment in March 2021. We have an easy to read Q&A Guide about Casual Employment on our website as well as a recorded webinar - you can access them both here: https://hrdynamics.com.au/

We expect that the second half of the year will see further Fair Work concentration on EBA’s, sham contracting and further penalisations for underpayments. We have a couple of cases below at the end of this email that may be of interest to you.

Being on top of your HR/IR compliance is super important, we recommend all our clients do a once a year spring clean and check all is in order. A good annual job that can align with your tax planning for this time of year, let Phoebe know if you would like to more information on our EOFY specials on ph 0438 735 926 or phoebe@hrdynamics.com.au

Our interesting cases are below, so keep reading, however for a completely unrelated but fun random fact to finish off – this month in Victoria a Kelpie (yes, a dog) sold for $35,000 – a record breaking price for a dog. Apparently, the working dog could read stock incredibly well and was quite talented. Makes my new puppy (admittedly who doesn’t have any working dog talents) look like a real bargain!

Until the new (financial) year,

Your HRD team

Phoebe, Rebecca, Deanne, Teneal, Leanne, Kylie, Caitlin, Desiree & Kim 

Interesting Cases (source: Fair Work):

Restaurant operators penalised $204,120

The Federal Circuit Court has imposed a $170,100 penalty against Domain Botanical Business Pty Ltd and $34,020 against James McBride, the company’s sole director. The company admitted to having underpaid 40 employees a total of $53,850 between December 2017 and June 2018. Domain Botanical Business paid flat hourly rates, in some cases as low as $18 per hour, for its casuals which failed to meet minimum hourly rates, casual loading, overtime rates and various penalty rates owed under the Restaurant Industry Award 2010. The company also did not provide adequate meal breaks, failed to keep records including time records, and did not undertake required reconciliations for full-time annualised salary employees.

Backpayments of $537,551 required

Mental health, community care and disability services provider Wellways Australia Limited will back-pay staff more than $1.5 million after entering into an Enforceable Undertaking (EU) with the Fair Work Ombudsman. The not-for-profit organisation first self-reported underpayments to the workplace regulator in September 2020.

After being prompted by an external review of its payroll function and a pay query from an employee, Wellways discovered it had underpaid more than 500 current and former employees’ entitlements under the Social, Community, Home Care and Disability Services Industry Award 2010 between 2014 and 2020.

The underpayments were the result of Wellways not having adequate payment systems and processes in place and not fully understanding its obligations under the Award.

Staff were underpaid minimum entitlements as a result of Wellways incorrectly classifying them or failing to progress them, when eligible, from one pay-point to the next. Employees performing sleepover-shifts were underpaid overtime entitlements and night-shift penalties.

Wellways has commenced back-payments and the EU requires it to calculate and back-pay entitlements for all affected employees, plus pay superannuation and interest, by 30 June 2021. As at 21 April 2021, Wellways had back paid a total of $537,551 to 335 staff.

Fair Work Ombudsman Sandra Parker said that an EU was appropriate as Wellways had demonstrated a strong commitment to rectifying all underpayments.

Changes to Superannuation

Don’t forget that the Superannuation Guarantee is set to increase in July.

https://www.ato.gov.au/rates/key-superannuation-rates-and-thresholds/?anchor=Superguaranteepercentage

Grants for Small Business

The Queensland Government has announced three new small business grants programs worth 25 million over two years.

The Business Basics, Business Boost and Business Growth Fund grants will target specific groups within the sector and continue to deliver on the Government’s election commitments to small business.

The grants are being rolled out based on direct feedback received from small business owners through the Small Business Roadshow and online survey which showed support programs are needed to assist Queensland businesses at different stages of the business lifecycle.

  1. Business Basics grants of up to $5,000 each support new and emerging businesses to increase core capabilities and adopt current best practice. Applications to open on May 31, 2021.
  1. Business Boost grants of up to $15,000 will help small businesses to improve their efficiency and productivity through organisational development and upgrades through automated software and CRM systems. Grants can be used for website development and upgrades, strategic marketing, training and coaching, advisory services and planning for business continuity and succession. Applications to open late July 2021.
  1. Business Growth Fund grants of up to $50,000 will allow businesses to buy highly specialised equipment to seize and accelerate growth opportunities. Applications to open May 11, 2021, with Guidelines available from 1 May.

https://www.business.qld.gov.au/starting-business/advice-support/grants/schedule?ref=home-feature&_cldee=aW5mb0BzdW5zaGluZWNvYXN0Y2hhbWJlcmFsbGlhbmNlLmNvbS5hdQ%3d%3d&recipientid=contact-917020685e8ce61180f2c4346bc5d21c-b6bf3924d3dc41479fc71a478cfde06a&esid=d04bc0f4-c77b-eb11-a812-00224814d91c

Sent by: the HR Dynamics team

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