Cashing out Annual Leave.

If you are a business owner, small, large, or in between, annual leave can be a major liability. If you do not manage it properly, it can become a problem. When wage rates go up every year, so does your annual leave liability. It makes good business sense to manage it. The recent Fair Work decision enabled employees covered by 122 Awards to cash out their annual leave – a great result for business owners.  Previously, only employees covered under an enterprise agreement were able to.   The decision has taken effect from 29 July 2016. The four main points of change are Cashing out annual leave; Taking leave in advance; Managing excessive leave, and; When to pay annual leave. #1. Cashing out annual leave Employees are now able to cash out annual leave as long as the balance after taking leave is 4 weeks.  The agreement must be in writing. You may not cash out more than 2 weeks in a 12-month cycle. #2. Taking leave in advance This clause enables employees to take leave before they are entitled to the leave and is only allowed if the employee and the employer have an agreement signed by both parties.  In addition, the agreement must state how much leave is to be taken and when it will commence. #3. Managing excessive leave This change comes into effect on 29 July 2017. It enables employers to direct their employee to take leave – provided they meet certain requirements prior to that direction. Fair Work describes excessive leave as more than 8 weeks’ worth, or 10 weeks for a shift worker....


You would be aware of what’s going on in the news with regards to the underpayment of wages.  Some of the biggest brand names have faced the Fair Work Ombudsman’s scrutiny with regards to this topic and some of these include; Coles, Woolworths, McDonalds and 7-Eleven.   7 –Eleven has been in the news for months now about how it has underpaid its workers and it continues to be caught up in this underpayments scandal. Overall, the majority to business try and do the right thing, and navigating the maze of employment legislation can be complex. Some examples of why companies are heading to the Commission are: underpayments of international students, falsification of records, intimidation and threats Underpayment of working holiday visa holders excessive working hours and overcrowded, overpriced accommodation for employees holding working visa’s Sham contracting   To read further details on recent cases refer to the Fair Work Ombudsman site. It is also good to be aware of the fact the Fair Work Ombudsman is now not only focusing on businesses but individuals who may be responsible.  Presently, failure to comply with Modern Award clauses can be costly, penalties can be imposed on companies of up to $54,000 per contravention and $10,800 for individuals.  The impact to a business for a visit to Fair Work is not only financial it can have a significant negative impact on your brand image and reputation. The one way to avoid this type of attention by your employees and the media is to ensure you are paying the correct entitlements to your employees and remember the wage increase handed down from...

#1 Getting HR Policies Right: Bullying and Harassment

We’ve had a lot of requests to begin a blog post series covering policies. The first cab off the rank is one policy that every business should have in place: bullying. Its estimated bullying costs Australian business between $6 and $36 billion per year. Bullying and harassment can occur in any industry, organisation and workplace – it is not selective. So firstly, what is bullying behaviour?

Why businesses poorly address poor performance!

Poor performance plagues every kind of workplace. Small, medium and corporate businesses alike experience problems with people. These people turn in incomplete work, drag down morale or spark the all-avoidable “spot fires” that managers are constantly running around and putting out. It’s bad for your team, long-term and medium-term planning and more importantly, your bottom line.