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Is your venue compliant with the new Fair Work requirements?

 

 Lawler Partners Hospitality

IS YOUR VENUE COMPLIANT WITH THE NEW FAIR WORK REQUIREMENTS?

While many venues have been struggling to address the new Fair Work requirements for the first payroll in January, a number of venues have opted to move directly to Enterprise Agreements to provide the necessary flexibility and as an easier method of ensuring compliance.

While we have been preparing Enterprise Agreements for venues for over 18 months we are now seeing draft Enterprise Agreements that have been put together without any appropriate financial modelling/taxation review to ascertain the impact of the terms of the agreement on the venue. For example, we have seen some EA's where that are likely to create increases in operating costs and increased FBT liabilities/compliance. 

From 1 January 2010, it was incumbent on venues (Clubs & hotels) to ensure that existing agreements currently in operation at the workplace provide for a base rate of pay that is no less than the Registered and Licensed Clubs Award 2010 (RALC), or other such Modern Award that applies, and comply with the National Employment Standards as enshrined in the Fair Work Act 2009, both of which took effect on 1 January 2010.

IMPACT OF EXISTING AGREEMENTS

Commonly many venues have an array of Existing Agreements which include the following types of workplace Agreements:

  • AWA

  • ITEA

  • Certified Agreement

  • Union Collective Agreement

  • Employee Collective Agreement

  • Union Greenfields Agreement

  • Employee Greenfields Agreement

  • Enterprise Agreement (that is, those made prior to 1 January 2010)

Despite the existence of these Existing Agreements (as above) in the workplace, from 1 January 2010 reference may also need to be made to the National Employment Standards ("NES") and the RLCA, or other relevant Modern Award to ensure employees are receiving the minimum entitlements. 

KEY DATE: 1 JANUARY 2010

From 1 January 2010:

  • The terms and conditions in the NES; and

  • The minimum wages under the RLCA or other modern award

will override the conditions of an existing Agreement that is inconsistent with either of the above two elements.

From this date employers must provide the base wage in the relevant modern award from 1 January - amending their existing Agreement base rate to the appropriate modern award rate, and they must provide all of the conditions in the NES to employees where they are not already provided in the Agreement.

Where there are provisions in Existing Agreements and the corresponding NES is more beneficial, the NES provision will apply. Conversely, if the provisions in existing Agreements are more beneficial to employees than the NES, the provisions of the existing Agreement will prevail.

It should be noted that the modern award, NES and the vast array of existing Agreements coupled with the transitional provisions make this process very complex and fraught with danger as any breach can render the employer liable for a fine of up to $33,000.


NEW ENTERPRISE AGREEMENTS


A number of venues have opted to move directly to an Enterprise Agreement to provide the necessary flexibility and as an easier method of ensuring compliance than dealing with the range of differing Existing Agreements they have with conflicting provisions

A number of venues have opted to move directly to an Enterprise Agreement to provide the necessary flexibility and as an easier method of ensuring compliance than dealing with the range of differing Existing Agreements they have with conflicting provisions

Unfortunately we are seeing draft Enterprise Agreements that have been put together without any appropriate financial modelling or taxation reviews to ascertain the potential impact of the terms of the new enterprise agreement on the venue. For example, we have seen some EA's where there is the potential to create significant FBT liabilities for the venue as some of the benefits have not been assessed for tax purposes or even their financial impact on the venue.

Lawler Partners can assist in addressing these serious matters by providing an audit of HR/IR systems and a comprehensive check of your compliance with Legislation and the new 1 January 2010 arrangements.

For more information or to discuss your venue's individual circumstances or assistance in the restructure of existing Workplace Agreements into a Enterprise Agreement please phone: 

Peter Norrie on 0438 682 504 or by email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Margaret Carew on 0409 999 909 or by email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Peter McLean on 0425 266 120 or by email on This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

 

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