Certex's iEngage program
Already over the past year there have been numerous cases of self-declared underpayments of staff, from Woolworths to George Calombaris’ restaurants. These underpayments have left employees being owed millions. The rapid development of an increasing casualisation of the workforce has been partnered with broad and complex legislative changes. Businesses have been left playing catch up.
It is unclear the extent to which these underpayments are malicious or can just be attributed to organisations struggling to keep up with a complex salary system. From Certex's experince, many of the SME's we work with in our iEngage Assessment Program are trying to do the right thing but are overwhelmed by the legisation and compliance requirements.
However, ignorance is never an excuse in a court.
The old practices that companies are relying on are not keeping up with recent changes - developments like casual conversion, sole traders etc. These changes are confusing, and coherent and consistent information from the Fair Work Ombudsman and asssociated legislation is often hard to find.
Employing a risk management approach is essential for all businesses while this legislative reform is occurring. Obtaining external verification from experts can provide a helpful 'peace of mind' to business owners and managers. Certex's iEngage Assessments help companies navigate these complex webs and highlight areas of risk or inconsistencies with today's legisation. Some issues we've been noting across the board are:
A false idea that old practices are sufficient;
Out of date contracts and contracts referring to out-of-date legislation;
Casual rosters of contractors not being known by labour hire companies; and
Unassessed risks in wage levels awards for salary staff, tracking overtime and length of work – both in terms of underpayments and safety risks.
With new legislation being introduced and old laws being re-interpreted it is important to know your responsibilities as an employer. Do not risk getting this wrong.