Underpayment – or wage theft – is a hot topic right now, with several large Australian companies making headlines in recent months for failing to comply with their employment obligations.

From 1 March 2020, revised annualised wage provisions determined by the Fair Work Commission will come into effect in a number of modern awards that will require more stringent record-keeping and overtime control measures.

While employers are not obliged to enter into an annualised wage arrangement, or required to make changes to current contracts, should they choose to do so it is critical that they have a workforce management system in place that is configured and customised to specifically meet the complexities of Australian workforce awards and regulations. Solutions available from offshore vendors are not equipped to interpret the complex nature of Australian awards, which is why errors may arise.

Humanforce, an Australian-based workforce management solution provider, is uniquely positioned with local knowledge, expertise and an on-shore development and support team. It is currently in the process of updating its software ahead of the March 1 changes, to help its clients remain compliant and better manage their business.

 

How Humanforce can help your business remain compliant

Overtime and Penalty Hours Outer Limits

New wage arrangements need to include an outer limit for overtime and penalty hours. Humanforce can configure this and allow you to:

  • Set up any number of variants of an annualised wage arrangement
  • Accurately cost a roster, taking into account over-outer-limits costs
  • Pay salaries and any over-outer-limits costs within the pay period
  • Accommodate employees on an annualised wage arrangement paid half in arrears, half in advance

 

Annual Reconciliation Report

Humanforce is developing a report that will satisfy the annual reconciliation requirement, where employers must – every 12 months or on termination of the employee – calculate the total amount an employee would have been entitled to under the relevant award over the relevant period. If this is greater than the total paid under the annualised wage arrangement, employers must pay the difference within 14 days.

 

Timekeeping

Time worked records must be kept for all employees on an annualised wage arrangement.

 

Humanforce allows the capture of time and the management of timesheets via:

  • Web kiosk using a PIN or with a biometric identity verification
  • Mobile app with the option to use geo-fencing to ensure employees are clocking on/off from where they are supposed to be

 

Employee Confirmation

Employees on an annualised wage arrangement are required to confirm that their timesheets are an accurate record of time worked, accommodating for instances where a manager may make alterations. For example, if the employee forgets to clock off.

 

Humanforce is in the process of developing a digital acknowledgement feature that allows employees to confirm the accuracy of their hours worked.

  • Once timesheets are finalised, employees will receive a notification showing hours worked for the specified period that they will need to confirm

 

These developments will allow employers to use the latest Humanforce technology to help them meet the revised annualised wage provisions and ensure employees receive what they are entitled to. Humanforce will notify all of its clients once this technology is available in its software.

 

If you would like one of our specialists to contact you in regards to changes to Annualised Salaries, Contact Us.

To learn more about the modern workforce download the How Employee Engagement is Shaping Modern HR Management whitepaper.