Negotiating Alternative Employment Arrangements
'All up' rates of pay are very attractive for small and medium enterprises largely because they don't have the human resources knowledge and labour resources to deal with the intricacies of Award penalty rates, loadings and allowances.
In our experience, many SME firms do not calculate 'all up' rates properly and leave themselves exposed to an application with the relevant enforcement agency for under payment of wages.
It is very important that business owners ascertain the correct award for the work that their staff perform. Reference to the wrong industrial instrument exposes the company to incorrect calculations from the word go.
Once the organisation has identified the right award it is necessary to carefully consider the application of the award in relation to the application of working arrangements within the business.
Don't cut corners and don't overlook Award clauses because they impose additional cost.
Awards are statutory documents which the enforcement agencies have great delight enforcing when employees complain of underpayment of wages.
The new Modern Awards, anticipated to be effective 1 January 2010, will contain 'Award Flexibility' Clauses.
If an Organisation wishes to structure its remunerative arrangements and hours of work in a way that is incongruent with Award application particular attention must be paid to the requirements for award flexibility contained in the Award.
Alternatively, Employers may consider the making and registration of workplace agreements.
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