5 minute read
Workplace Relations
SUPERANNUATION STAPLING
Stapling is a proposed change to superannuation legislation that, if introduced, will change the way employers administer super for new employees.
As part of the government’s Your Future, Your Super package, stapling proposes that people will have their existing super account ‘stapled’ to them as they change jobs. It’s designed to stop the creation of multiple accounts that then reduce an employees retirement savings.
Stapling will change the process an employer needs to follow to setup super for a new employee who doesn’t return a choice of fund form.
When a choice of fund form isn’t returned, employers will need to log into the ATO’s online service, enter the employee’s details to find their stapled super account, and pay the employee’s super into that account.
Employers will still need their default fund to create accounts for employees who don’t choose a fund or have an existing super fund (e.g., an employee starting their first job).
Under the proposed changes, from 1 July 2022 searching for an employee’s stapled account will become an automated process between payroll systems and the ATO.
Stapling is currently proposed to be introduced from 1 July 2021. The Your Future, Your Super draft regulations have been released with the consultation period closing in late May. It is expected that further details on how stapling will work and need to be administered by employers will be available at that point.
If you have any concerns about this proposed legislation we suggest you raise these with your local member of parliament.
Further information on stapling is available from treasury.gov.au/publication/p2020-super, and Troy Wolter from BUSSQ is always available on 0417 702 822 to help answer your queries on superannuation legislation.
Source: Your Future, Your Super https://treasury.gov.au/ publication/p2020-super. The information supplied here is general advice only and does not take into account or consider your personal objectives, financial situation or needs. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201).
FAIR WORK ACT – CASUAL EMPLOYMENT DEFINITION
The Fair Work Amendment (Support Australia’s Jobs and Economic Recovery) Bill 2020 (the Bill) was introduced in Federal Parliament in December 2020, and one particular area of the Bill, which has now been passed, is regarding casual employment.
During the Rossato case in 2020 between Workpac Pty Ltd vs Rossato, it was found by the full bench of the Federal Court of Australia that, although Rossato was employed as a casual employee with a contract, he was actually deemed a permanent employee due to the actual working arrangements and not due to the employment contract that had been agreed. Therefore, Rossato was entitled to untaken paid annual leave, paid personal/carers leave, paid public holidays, and paid compassionate leave.
This particular case is still going to the High Court of Australia; however, with the introduction of the Bill, there is now a legislated definition of a casual employee.
Casual Definition
Under the Bill, a person will be deemed a casual employee: • if an offer of casual employment is made on the basis that the employer makes no firm advance commitment to continuing any indefinite work according to an agreed pattern or work; and • the employee accepts that offer.
This new definition will apply to offers of casual employment that were given before, on, or after the commencement of the amendments, which started on 5 April 2021.
In addition to the above definition, at the time the offer of casual employment is made, the following is to considered: • whether the employer can elect to offer work and whether the person can elect to accept or reject work; • whether the person will work only as required; • whether the employment is described as casual employment; and • whether the person will be entitled to a casual loading or a specific rate of pay for casual employees under the terms of the offer.
Casual Fair Work Information Statement
A Casual Employee Fair Work Information Statement will need to be provided to all existing and new casual employees.
Double Dipping of Wages
The Bill also provides that employees cannot “double dip” (i.e receive a casual loading and an entitlement to undertake annual leave, annual leave loading, etc.) if it can be clearly identified that the casual employee was being paid the casual loading, i.e., separated out on payslips and in employment contracts. If a court was to deem the employee a permanent employee and not a casual employee, the court must reduce any amount payable by the employer to the employee by an amount equal to the loading amount.
Casual Conversion
The Bill also details casual conversion options. The casual conversion is also currently a requirement under the Plumbing and Fire Sprinklers Award 2020.
For further information, or to determine how this new legislated provision applies to your business, please contact our Workplace Relations team on 07 3273 0800.
KEEP YOUR CASH FLOWING WORKSHOPS
MPAQ and Tradies Accountant are hosting interactive workshops for plumbing businesses wanting to take control of their finances, investigate the relationship between profit and cash flow, and reduce financial stress.
In this half-day workshop, Bryn from Tradies Accountant will do a deep dive into key aspects of plumbing business bookkeeping and accounting to ensure plumbing businesses have the right tools to understand and manage their business financials.
Remaining Workshops
Wide Bay Wednesday 28 July Sunshine Coast Thursday 29 July Brisbane Friday 30 July
This course costs $20 for attendees who are eligible for funding under the CSQ Small Business Program. Go to www.mpaq.com.au/event for more information on costs and to register, or email events@mpaq.com.au.
$53,000 PENALTY – CAN YOUR BUSINESS AFFORD IT?
A construction business in Brisbane has found itself in a very expensive situation as they did not follow the orders from a Fair Work Commission decision.
In May 2020, the Fair Work Commission ordered ADADN Pty Ltd to compensate an unfairly dismissed worker, $34,590 in compensation (plus interest) and $2,052 in superannuation entitlements.
The employee sought assistance from the Fair Work Ombudsman (FWO) as compensation payments had not been received. The FWO made several attempts to contact the business before pursuing further legal action.
The case was heard in the Federal Circuit Court and the court imposed an additional penalty of $53,000 ($45,000 for the business and $8,000 for the individual sole director), on top of the previous Fair Work Commission Order. The business and Director are now facing order and penalty payments of more than $89,600.
This case is a timely reminder that if your business has been ordered by the Fair Work Commission to compensate an employee, if that payment is not made, further penalties will be imposed.
