A frequently asked question when it comes to personnel management is: “We always hear about following the law in terms of ‘pay and conditions’, but what exactly is ‘pay and conditions’ and where does the law fit in?”

The following is a useful summary of the main payment areas and the conditions they cover, as well as the key points to consider.

PAY – Paying employees cover the following areas:

* Payment of ordinary wages and salaries, as required by the minimum legislative standards, award, agreement and individual contractual provisions.

* Overtime payments

* Change of loads and assignments

* Other assignments, such as first aid, travel, entertainment

* Salary Package – Provides other benefits as components of the general compensation package.

* Deduction of income tax from the salary of employees.

* Other deductions from pay authorized by employees

* Bonuses, commissions and other incentive payments.

* Enforcement of Garnishment Orders: When a court orders deductions from an employee’s salary to be made to the party who obtained the court order.

* Provide pay stubs to employees with full details of pay and deductions (taxes included).

* Maintenance of payroll records in accordance with the legislation.

CONDITIONS – “Conditions” refers to the conditions of employment and the rights of employees. The extensive covered areas include the following:

* Working hours: covers full-time versus part-time employment, casual employment, ordinary working hours, overtime, non-standard hours (such as weekend or evening work or holiday work), shift work, fixed term / fixed project contracts, flexible work hours, scheduled days off, meal breaks, rest times, call back / wait arrangements, travel time to / from work.

* Leave: includes annual leave, personal / caregiver leave, unpaid caregiver leave, compassionate leave, unpaid parental leave (includes maternity, paternity and adoption leave) long-service leave and defense force service leave , all of which are basic rights available to all employees who qualify for them. Other forms of leave that employers typically provide employees include study leave, emergency service leave, cultural / ceremonial leave, and unpaid leave.

* Holidays: employees are entitled to official holidays. If the employer requires them to work on those days, they may be entitled to fines and / or other benefits (such as time off rather than at a later date).

Key points to remember about payment and conditions

Be proactive: Fulfilling the obligations in relation to the remuneration of the employees, the working conditions, the conduct and the work performance implies, in the first place, complying with all the legal requirements that govern in these areas. However, it also means being proactive – providing a supportive workplace and work culture, attracting workers to your business in the first place, encouraging good employees to stay with your organization, and acting promptly if problems arise, in order to to prevent or minimize adverse consequences. .

Please note the legal obligations: The first step is to be fully aware of all the legal obligations that you must comply with. These cover the following areas: paid employees, working hours, vacation rights, vacations, working hours, etc. Study the documents that affect these areas (legislation, awards and agreements, individual employment contracts and organization policies / procedures) and establish a compliance system that ensures that you continue to comply and can stay abreast of any changes that occur, as new legislation and jurisprudence.

Police and procedures: Many aspects of employee behavior and performance are covered by workplace policies and procedures, such as the off-day list policy, work-life balance policy, and company vehicle policy. . Prepare policies that cover the various topics of your business, back them up with procedures (which are steps to implement the policies in a practical way), and make sure they are widely publicized, explained to employees, and clearly understood by employees. Many employers refer to these policies and procedures in employment contracts. However, to reduce the risk of a breach of contract claim, you should avoid converting them to contract terms. Very small businesses may find it expensive and unnecessary to develop a set of policies. However, court cases have argued that even the smallest companies should have policies in place. If you are not sure which policies are right for your business, you should seek advice.

Get market rates in payment: To ensure that you remain competitive as an employer, evaluate the pay rates and other terms offered by rival companies in your industry or location. Surveys are commercially available through sources such as employer organizations and recruitment / consultancy agencies, or you can make informal “information sharing” arrangements with other employers. In return, you must be willing to participate in surveys and provide data on your organization’s fees and payment terms.

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