TTIA GENERAL CIRCULAR
NO. 2/2015
To:All Members
From:Brian Beecroft,
Chief Executive Officer
Date:20 April 2015
CONTENTS:
- Anzac Day Holiday
- NSW WORKERS COMPENSATION PROPOSED CHANGES
- Superannuation Changes: The Small Business Clearing House
- Federal Court decision regarding payment of annual leave on termination of employment
- Workplace Gender Equality Reporting –summary of consultations
- SINGLE TOUCH PAYROLL
- JOBACTIVE – A NEW GOVERNMENT INITIATIVE
The information presented in this circular was developed from sources believed to be reliable. In the context of the absolute responsibilities owed by employers to ensure a safe place of work, it should not be assumed that all reliable measures to eliminate or mitigate risk have been canvassed in this presentation. Prevailing applicable legislation, Australian Standards, Codes of Practice, manufacturers’ requirements etc should all be taken into account in the OHS risk management decision-making process. TTIA, its employees and agents shall not be liable for any loss or damage incurred as a result of any reliance on the information presented.
- ANZAC DAY HOLIDAY
TTIA has received several enquiries as to whether state governments have declared an extra public holiday this year as Anzac Day falls on a Saturday.
All States and Territories apart from Western Australia will celebrate Anzac Day on Saturday 25 April. There will be no substitute public holiday on the following Monday. Only WA and certain sectors of the ACT will celebrate both Saturday 25th April and Monday 27th April as public holidays.
Members are reminded that Clause 30.7(a) of the Timber Industry Award 2010 states that all work performed by weekly employees on the instructions of the employer will be paid at double time and a half, with a minimum payment for three hours at such rate. Casual employees should be paid double time and a half at their ordinary casual rate (i.e. 2.75 times the ordinary rate for non-casual workers).
- NSW WORKERS COMPENSATION PROPOSED CHANGES
FOR MEDIUM TO LARGE BUSINESSES
WorkCover has recently released plans to reform workers’ compensation premiums for the medium and large employers of New South Wales. The changes are due to come into effect in 2015 and 2016.
Although at this stage information is limited, some of the changes include:
- Policies will be assessed for risk ratings on an annual basis.
- Minimum and maximum premiums will be introduced.
- Making policies easier to understand by introducing a new premium model.
- Incentives for employers who manage injured workers by returning them to work are being introduced. This will be referred to as an Employer Safety Incentive (ESI).
- Incentives for employers who have no claims for four consecutive years will also be introduced. This will be referred to as an Employer Safety Reward (ESR).
- Introduction of a scheme performance adjustment.
TTIA will advise members when further information regarding these workers compensation changes becomes available.
3. Superannuation Changes: The Small Business Clearing HousE
The Federal Government has announced that it will expand access to the Small Business Clearing House (SBCH) to all businesses with an annual turnover of less than $2 million.
This means that from 1 July 2015 employers whose turnover is less than $2 million or who employ 19 or fewer employees may be eligible to use the SBCH.
Large employers (20 or more employees) have until 30 June 2015 to be compliant with the requirements of the SuperStream Data and Payments Standard (the Standard); small employers have until 30 June 2016. The Standard requires employers to make their superannuation payments on line and send their superannuation contributions data and payments electronically in a standard message format. This means that most employers will have to upgrade their payroll software and use a third party clearing house to distribute data and funds in accordance with the electronic requirements of the Standard.
The SBCH is a free online clearing house service which has been set up by the Federal Government to allow smallemployers to pay superannuation contributions in one transaction to a single location and to be compliant with the requirements of the Standard. It is administered by the Australian Tax Office and further information on this issue can be obtained from their website.
4. Federal Court decision regarding payment of annual leave on termination of employment
A recent decision has considered the entitlement of employees to payments such as annual leave loading on any untaken annual leave paid out on termination of employment and has determined that, where applicable, payments such as annual leave loading should be included in payments made on termination.
Background
Section 90(2) of the Fair Work Act 2009 (Cth) (Act) provides that untaken annual leave must be paid out on termination of employment. The section also provides that when this happens, an employee must be paid “the amount that would have been payable to the employee had the employee taken that period of leave.”
In Centennial Northern Mining Services Pty Ltd v Construction, Forestry, Mining and Energy Union (No 2) [2015] FCA 136, the Federal Court of Australia considered the meaning of the obligation in s 90(2).
The court’s consideration arose in the context of a dispute about the validity of a clause in the Centennial Northern Mining Services Enterprise Agreement 2011.
The clause in question had the effect of providing employees with less pay for untaken annual leave on termination of employment when compared to annual leave taken during employment. This was because, among other things, annual leave loading was payable on leave taken during employment but not on termination of employment.
In the dispute the union argued that the clause was inconsistent with s 90(2) of the Act because it meant that employees being paid for untaken annual leave on termination of employment did not receive the amount that would have been payable had the employee taken that period of leave. The union’s argument was that if, for example, annual leave loading was payable for annual leave taken during employment, s 90(2) operates to require that it must also be payable on untaken annual leave on termination of employment.
By contrast, the company argued that s 90(2) related only to the minimum entitlement to annual leave in the Act and not to additional payments such annual leave loading which were derived only from the agreement. It sought a declaration that its enterprise agreement did not beach the Act.
The Court accepted the union’s argument and declined to grant the company declaratory relief.
Implications for employers and reform
This decision means that employees who receive additional payments such as annual leave loading for annual leave taken during employment must also receive these payments on untaken annual leave upon termination of employment, even where a modern award, enterprise agreement or contract provides that a lesser payment is applicable on termination of employment such as the Timber Industry Award 2010 does in certain circumstances.
The Fair Work Amendment Bill 2014 currently before Parliament seeks to repeal section 90(2) and an appeal of this decision was filed on 19 March 2015.
The TTIA will keep members informed about the proposed changes to the Fair Work Act and the appeal decision.
5. Workplace Gender Equality Reporting –
summary of consultations
Members would be aware of the previous government’s desire to introduce gender reporting requirements on employers. The present federal government is changing a number of aspects of those gender reporting requirements which were due to commence on 1 April this year for employers.
As a result of widespread consultation with employer groups over the past year it has become apparent that the reporting regime is complex and impractical in terms of meeting any general gender equality issues in the workplace.
A summary of the changes below should assist:
Information no longer required
Broader reporting requirements, scheduled to be introduced on 1 April 2015, will no longer go ahead. The government has announced reporting on the following categories will no longer be required:
•separate components of remuneration for each employee
•numbers of job applications and interviews
•CEO salaries
•remuneration of casual managers
•contractors (engaged on a contract for services basis)
•the number of requests made, and approvals granted, for extensions to parental leave
•annualised average full-time components of total remuneration.
New information required
For 2015/2016 reporting period employers will have to provide data regarding:
•appointments, promotions and resignations for managers and non-managers
•the proportion of employees that ceased employment following parental leave for managers and non-managers.
Employers with 100 or more employees will continue to report annually to the Workplace Gender Equality Agency on the same indicators as last year.
TTIA will continue to update Members on any further modifications to the above requirements.
- SINGLE TOUCH PAYROLL
On 28 December 2014, the Minister for Small Business, Bruce Billson MP, and the Assistant Treasurer, Josh Frydenberg MP, announced that the government will cut red tape for employers by simplifying tax and superannuation reporting obligations through Single Touch Payroll.
Under Single Touch Payroll, employers will be required to electronically report payroll and super information to the ATO when employees are paid, using Standard Business Reporting-enabled software.
In addition, Single Touch Payroll will streamline tax file number (TFN) declarations and Super Choice forms by providing a digital channel to simplify the process of bringing on new employees. It could also cut red tape by notifying super funds and government agencies, such as the Department of Human Services (DHS), when an employee ceases employment.
Single Touch Payroll will be available from July 2016. To meet their obligations under Single Touch Payroll, employers would be required to use, and if necessary acquire, appropriate payroll software. The government is yet to make final decisions on its implementation, and this discussion paper seeks stakeholder views on:
•transition arrangements
•suggestions on how to minimise implementation and compliance costs
•the potential for employers to remit employee pay as you go withholding and the super guarantee at the same time employees are paid.
More information is available online at
7. JOBACTIVE – A NEW GOVERNMENT INITIATIVE
On 1July2015, the Australian Government is introducing new employment services called Jobactive to better meet the needs of job seekers and employers and improve job outcomes. This will replace Job Services Australia.
What do the changes mean for employers?
The network of Jobactive organisations across Australia will help employers find staff for their business, at no charge to them. These organisations will screen candidates to ensure they meet an employer’s business needs.
Their Jobactive organisation will work with job seekers to support them to take part in Work for the Dole or other activities to prepare them for the work environment. Any training job seekers do will be relevant to employers’ needs and real job opportunities.
Employers will have access to wage subsidies for young people, mature age people, Indigenous people and long term unemployed people to take on job seekers and provide job specific training where needed.
There will also be more tailored online services available to employers which will enable them to fast-track advertising and manage vacancies, find and manage suitable candidates and connect with Jobactive organisations.
What support is available for employers during the transition?
Employers who have recently taken on a job seeker through a Job Services Australia provider will continue to receive the support and assistance they need.
The Job Services Australia providers the employer currently works with will contact them to let them know what is happening and whether they will continue to deliver services. Details are available on the organisations that will be delivering Jobactive from 1July 2015.
If you have any questions about these changes or would like more information, you can:
Call the National Customer Service Line on 1300 854 414 or 13 62 68 or go online
1