It is not always about the money

Time off in Lieu has been extended by the Fair Work commission into the Modern Awards.

It is not uncommon for workers to want to enjoy the rewards of their hard work with something other than cash.  

For many, time off in lieu for overtime worked (TOIL) can be put towards creating a long weekend or used for family and personal activities.    This can be a greater motivator than money.  

For business it can be a win-win arrangement as it can save a owner money and also good workers will use this time for person reasons, rather than taking a “sickie”.
  

83 of the 122 modern awards already provide for (TOIL).   Of those, 60 provide the TOIL is calculated at the ordinary rate and the remaining 23 modern awards provide TOIL at the overtime rate.   

The Fair Work Commission has ruled that the TOIL should be inserted into the remaining awards.   

What steps do you need to take in implementing a TOIL arrangement?

1)  You may agree in writing to the employee taking time off instead of being paid for a  particular amount of overtime that has been worked by the employee.

2)  A TOIL agreement can also be made by an exchange of email or SMS messages with you.

3)   The period of time off that an employee is entitled to take is the same as the number of overtime hours worked e.g. three overtime hours = 3 hours of TOIL.

4)   TOIL must be taken within the period of six months after the overtime is worked at times agreed by the employee and employer.

5)  Copies of any TOIL agreements must be kept as an employee record.

6)  No undue influence or undue pressure is to be exerted onto an employee to make or not make a TOIL agreement.

7)  An employee may request a TOIL agreement as a flexible working arrangement. You cannot refuse the agreement except on reasonable business grounds.

8)   A policy outlining the TOIL and how it works should be developed and all employees made aware of what the agreement will include.

9)   You must pay out the overtime if:

(a)   TOIL is not taken within six months;

(b)   The employee requests it to be paid out; or

(c)    The employee’s employment ends

You must not knowingly or recklessly make a false or misleading representation about an employee’s entitlements under a TOIL agreement.   

You should know what the modern award that applies to your business has in terms of a
TOIL arrangement.  

Help is available

End2end can help a business get ahead of their competitors with tailored staff management strategies, call us on 02 8977 4002 to see how we can help you.  

Community Service Leave

Employees, including casual employees, are entitled to take community service leave for particular activities under the Fair Work Act, including:

• Voluntary emergency management activities
• Jury duty

With the exception of jury duty, community service leave is unpaid.

An employee is involved with a voluntary emergency activity when:

• The activity involves dealing with an emergency or natural disaster.
• The employee participates in this activity on a voluntary basis
• The employee was either requested to participate in an activity , or it would be reasonable to expect such a request would have been made if circumstances permitted
• The employee is a member of, or has an association with a recognised emergency management body.
• A recognised emergency management body is:
• A body that has a role or function under a plan that is for coping with emergencies or natural disasters.
• A fire fighting , civil defence or rescue body
• Any other body which is mainly involved in responding to an emergency or natural disaster including SES, the Country Fire Authority and the RSPCA.

Community service leave is likely to carry greater consequences in high risk and rural areas, especially during the summer when the threat of bushfires is much greater.

There is no limit on the amount of community service leave an employee can take however an employee who takes community service leave must give their employer notice of the absence as soon as possible and the expected period of absence. The employer can require the employee to give the employer evidence that would satisfy a reasonable person that the absence is because the employee has been, or will be, engaging in the eligible community service activity. An employer can face serious penalties for dismissing an employee that tries to take community service leave. A violation of a provision of the National Employment Scheme can result in penalties of up to $10,800 for an individual and $54,000 for a corporation.

Community service leave to volunteer in an emergency situation is unpaid leave under the National Employment Standards, although some State and Territory laws have created an obligation to pay employees for the time off. Queensland, Tasmania and Western Australia all expect you to pay ordinary wages during an employee’s absence.

Under the National Employee Standard, you are obliged to pay an employee jury duty for their first 10 days of service at their usual base rate of pay.

Annual Wage Increase

Every year, The Fair Work Commission (FWC) reviews the minimum wages outlined in the modern awards as well as the national minimum wage for employees who are not currently covered by an award or enterprise agreement.

The Fair Work Commission has announced a 2.5% increase to minimum wages. The increase will begin from the first full pay period starting on or after 1 July 2015.

The increase will only apply to employees that get their tax rates from the national minimum wage, a modern award or a registered agreement in some cases.

The new minimum wage will be $656.90 per week or $17.29 per hour. The national minimum wage is applied to employees who aren’t covered by an award or agreement. However, most employees are covered by an award. Award rates will be increased by 2.5%.

It is important for employers covered by an enterprise agreement to be conscious of their requirements relating to minimum pay rates because of the Annual Wage Review decision.
Section 206 of the Fair Work Act 2009 demands that the base rate of pay in an enterprise agreement must be at least equal to the appropriate modern award rate. If the enterprise agreement rates are less than those required under the relevant modern award, the agreement operates as if its base rates were equal to those under the modern award.

Employers could be at risk of underpayment claims if their enterprise agreement caters for annual wage increases that are less than the increases applied to the modern award rates in accordance with the annual wage review decision. This can particularly be an issue if the current pay rates under the enterprise agreement are equal to, or only marginally above, the applicable modern award base rates.
If employees are being paid a blended rate, comprehensive of some or all allowances, employers should ensure that the base rate is at least equal to or higher than the applicable modern award rate. This can cause problems in some cases where it is difficult to distinguish from the allowances included in the blended rate.

Employers who pay their employees an annual salary or wage must also be sure that their employees’ salaries are equal to, or higher than the payment that the employee would be entitled to for the hours they regularly work under an appropriate enterprise agreement or modern award.