Award interpretation can be challenging at the best of times, but certain industries are at particular risk of misinterpretation.
We sat down with Vertruen’s Chief Executive Officer, Craig Rollinson, to discuss which industries have the most complex awards, why these sectors face regular regulatory action, and how businesses can avoid misinterpreting wages and entitlements for their workforce.
Which businesses have the most complex awards?
Industries such as real estate, hospitality, construction, transport, childcare and healthcare, where multiple awards and entitlements may apply, typically have the most room for error.
“There are a few factors that make businesses in these industries more at risk of non-compliance,” Craig said. “For example, some businesses may have multiple applicable awards per employer, for others, it comes down to facing difficulty interpreting and applying the rules. There are also frequent updates within these industries awards to reflect changing conditions, which can be easy to miss if you’re not staying on top of your compliance obligations.”
Other common ways businesses within these industries fail to meet their compliance needs include:
- Misidentifying applicable award(s)
- Incorrect classification of employees
- Overlooking overtime and penalty rates
- Failing to keep accurate records
Changes are coming to the National Minimum Wage – are you prepared?
Each year, the Fair Work Commission reviews the National Minimum Wage and minimum award wages to decide if they should be increased. Any changes usually take effect from the first full pay period on or after 1 July.
Now is the time to get prepared to ensure you remain compliant through these changes – no matter what industry you operate in.
What is the best way to avoid non-compliance?
Craig’s recommendation for businesses to remain compliant is to stay proactive, rather than reactive.
“At a minimum, HR professionals and company directors need to ensure they are across any changes issued by the Fair Work Commission,” Craig said.
“However, the best way to know whether you’re compliant or not is to utilise a continuous compliance service like Vertruen offers. We use a proprietary data solution at a frequency that suits your business and analyses your payroll and time and attendance data to look for any red flags.
“We also identify anything that could be an issue in the future, such as changes to the National Minimum Wage, to ensure systems are in place proactively. We then provide you with a robust yet easy-to-read report highlighting whether everything’s on track or if potential issues have been identified.”
