Employers Handbook. An introductory guide for employers

Transcription

1 Employers Handbook An introductory guide for employers

2 Contents Employer checklist 1 Employer obligations 2 Other considerations 2 Useful links 3 Sample letter of offer of employment 4 Employee details form 6 Timesheet 7 Leave application form 8 Tax file number declaration form 9 Superannuation standard choice form 10 Wage reconciliation 12 National employment standards 13 Fair Work Information statement 14 Page 2

3 Employer Checklist Before an employee commences Item Website See page Register for PAYG Withholding with the Australian Taxation Office ration/work-out-which-registrationsyou-need/taxation-registrations/payas-you-go-withholding/ n/a Produce a letter of offer for the employee n/a 4 Provide your new employee with a copy of Fair Work Information Statement (only applicable to national system employers) 15 When an employee commences Item Website See page Have your new employee complete their Employee Details Have your employee complete a Tax File Number Declaration n/a 6 n/a 9 Have your employee complete a Superannuation Standard Choice Form ntent/spr/downloads/super17983super annuation_standard_choice_form.pdf 10 Provide an appropriate induction that includes company policies, workplace safety and health, operation of equipment n/a n/a During employment Item Website See page Have your employees complete timesheets Have your employees apply for planned leave using a leave form n/a 7 n/a 8 Page 3

4 Employer Obligations Item Notes Deduct tax from each pay using PAYGW tables See tax tables at: Check the TFN declaration This important to determine whether the employee has chosen the tax free threshold and whether they have HELP, SSL, ABSTUDY SSL, TSL OR SFSS debt Report gross wages and tax withheld to the ATO when lodging your Business Activity Statement Calculate superannuation (currently 9.5%) on the gross ordinary time earnings (before deducting tax) and Pay quarterly direct to the super fund (not to the employee) via a SuperStream compliant method At end of each year complete PAYG Payment Summary for each employee (page 12). Ensure you give these to your employees by the 14 th July and a copy to the ATO together with the Summary Statement by 14 th August Generally, you have to pay super for your employees if they: are paid $450 (before tax) or more in a calendar month work full-time, part-time or on a casual basis are under 18 and working more than 30 hours per week The total amount reported on the payment summaries should match that reported on your BAS and the amount in your profit and loss statement. See page 12. Other Considerations Item Notes Be sure a Workers Compensation insurance policy is in place and that it is paid up Do you employ foreign workers? Chttps:// Be aware of Fringe Benefits Tax if you are providing benefits in addition to the wage, such as motor vehicles, accommodation, meals Page 4

5 Useful Links Website description Pay information - Everything a national system employer needs to know to meet their legal obligations in paying your employees Pay and conditions tool a calculator for national system employers to determine base pay rates, allowances and penalty rates Award Finder (federal) an alphabetical list of all modern Awards (national) and a tool to help you find the applicable award for your employees Award Finder (state) an alphabetical list of all Awards in the state system Leave calculator a calculator for national system employers to find out how much annual or sick / carer s leave as accumulated Apprentice and Trainee pay rates for national system employers Working holiday visas Check visa conditions online allows employers to check visa conditions Website address Page 5

6 IMPORTANT THIS IS A SAMPLE ONLY. YOU SHOULD SEEK LEGAL ADVICE WHEN DRAFTING AN EMPLOYMENT CONTRACT <Insert Letterhead> <Date> <Employee Name> <Address Line 1> <Address Line 2> Good Morning/Afternoon <name> Future Employment with < Business Name> Congratulations on being accepted as part of the team at <business name>. Set out below are the conditions of your employment and our offer to you: Your position of <position> is permanent <full-time or part-time> and will commence on <date>. <or> Your position of <position> is <full-time or part-time> commencing on <date> and finishing on <date>. Your terms and conditions of employment will be subject to the <Award name> and you will be employed under <Classification level>. Your duties will be as described in the enclosed position description. You may be required from time to time to perform other duties within your level of skills and competence to meet business needs. Your salary package is $< amount> per <hour/week/annum> (including 9.5% Superannuation). This is made up of a base salary of $<salary> plus superannuation of $<salary>. Your salary will be reviewed in < timing>. You will be paid on a <weekly/fortnightly/monthly> basis with the amount being deposited directly into your nominated bank account. Those details will be obtained from you together with your nominated superannuation fund during the first week of your employment.

7 There is a standard three month probationary period. You will have a performance review three months after you commence your employment with us. At the end of the probationary period, subject to satisfactory performance and operational requirements, you will be offered continuing employment on a permanent basis. Full-time team members are entitled to 4 weeks annual leave, all public holidays and 10 days for personal / carer s leave. Annual leave and personal / carer s leave is prorata for part-time team members. Please read the attached document/s carefully prior to accepting this offer of employment. Should you have any qeustions, please contact <insert name>. If the terms and conditions of the offer are acceptable to you, please confirm your acceptance by signing and dating the enclosed copy of this letter and returning it prior to your proposed start date. I trust that the position you have accepted within our team provides you with the professional challenges you desire and we look forward to you starting with us on <date>. Yours sincerely <Name of signatory> <Title of signatory> Enc I hereby accept the offer of employment. Name:..... Signature: Date:...

8 Employee Details Name Job title Tax File Number Address Home phone Mobile phone Home Date of birth Next of kin name Relationship Next of kin contact number Superannuation fund name Superannuation fund number Bank account details BSB: Account No: Date of commencement Date ceased employment

9 TIMESHEET Employee Name: Week Ending: Monday Tuesday Wednesday Thursday Friday Saturday Sunday TOTAL Times Hours Leave Annual Public Holiday Personal On Call Yes/No Allowances Travel: <insert cents amount>c per kilometre $ On Call Allowance: $<insert dollar amount> per day $ Professional Fee Reimbursement: Date Client Total Invoice Professional Fee (exc travel & medic) Less GST Claim (50%) Total Professional Fee Reimbursement $ Total Allowances: $ Signature:

10 LEAVE APPLICATION Name Department I wish to take leave on the dates shown below: First day of leave Return date Last day of leave This leave is made up of: Type of leave Annual leave Personal leave Leave of absence (unpaid) Other, please specify (eg long service leave) Total Number of days Are there any public holidays during your leave period? Yes / No Comments: Signed Dated When completed, please return to <insert name of person>. You will receive an when your leave has been approved. Office Use Only <Insert title of person approving leave> <Insert title of 2 nd person approving leave> Signature Date

11 ato.gov.au Section A: To be completed by the PAYEE 1 What is your tax For more information, see question 1 on page 2 of the instructions. OR I have made a separate application/enquiry to the ATO for a new or existing TFN. OR I am claiming an exemption because I am under 18 years of age and do not earn enough to pay tax. This declaration is NOT an application for a tax file number. Use a black or blue pen and print clearly in BLOCK LETTERS. Print X in the appropriate boxes. Read all the instructions before you complete this declaration. OR I am claiming an exemption because I am in receipt of a pension, benefit or allowance. 2 What is your name? Title: Mr Mrs Miss Ms Surname or family name First given name Other given names 6 On what basis are you paid? (Select only one.) Full-time Part-time Labour Superannuation employment employment hire or annuity income stream 7 Are you an Australian resident (Visit ato.gov.au/residency to check) Yes No ORIGINAL ATO copy Do you want to claim the tax-free threshold from this payer? Only claim the tax-free threshold from one payer at a time, unless your total income from all sources for the financial year will be less than the tax-free e threshold. Answer no at questions 9 and 10 unless you are a Yes No zone or overseas forces tax offset. 9 Do you want to claim the seniors and pensioners tax offset by reducing the amount withheld from payments made to you? Complete a Withholding declaration (NAT 3093), but only if you Yes are claiming ing the one payer, see page 3 of the tax-free threshold from this payer. If you have more than instructions. Casual employment You must answer no at question 8. No 3 If you have changed your name since you last dealt with us, 10 Do you want to claim a zone, overseas forces, dependent spouse or dependent (invalid and carer) tax offset by reducing the amount withheld from payments made to you? Yes Complete a Withholding declaration (NAT 3093). No 4 What is your date of birth? 5 What is your home address in Australia? Day Month Year 11 (a) Do you have an accumulated Higher Education Loan Program (HELP) debt? Your payer will withhold additional amounts to cover any compulsory Yes repayments that may be raised on your notice of assessment. (b) Do you have an accumulated Financial Supplement debt? Your payer will withhold additional amounts to cover any compulsory Yes repayments that may be raised on your notice of assessment. No No Suburb or town State/territory Postcode DECLARATION by payee: I declare that the information I have given is true and correct. Signature Date Day Month Year You MUST SIGN here There are penalties for deliberately making a false or misleading statement. Section B: To be completed by the PAYER (if you are not lodging online) 1 What is your Australian business number (ABN) or your withholding payer number? Branch number (if applicable) 4 What is your business address? 2 If you don t have an ABN or withholding payer number, have you applied for one? Yes No 3 What is your legal name or registered business name (or your individual name if not in business)? Suburb or town State/territory Postcode 5 Who is your contact person? Business phone number DECLARATION by payer: I declare that the information I have given is true and correct. Signature of payer Date Day Month There are penalties for deliberately making a false or misleading statement. NAT [JS 27654] Year 6 If you no longer make payments to this payee, print X in this box Return the completed original ATO copy to: For WA, SA, NT, VIC or TAS For NSW, QLD or ACT Australian Taxation Office Australian Taxation Office PO Box 795 PO Box 9004 ALBURY NSW 2640 PENRITH NSW 2740 TAXPAYER-SENSITIVE (when completed) IMPORTANT See reverse side of Payer s copy for: payer obligations lodging online.

12 X X

13

14 Wage Reconciliation Year Ending: The total wages and tax withheld amounts lodged in your activity statements should match the total amounts reported on the Payment Summaries Annual Report. Before you lodge your June BAS, reconcile the wages by recording the amounts lodged in your activity statements. Then record the amounts reported on the Payment Summaries Annual Report. If there are any differences between the totals, the amounts can then be adjusted on the June BAS. Amounts reported on Business Activity Statements July August 1 st quarter September October November 2 nd quarter December January February 3 rd quarter March April May 4 th quarter June W1 Gross Wages W2 Wages Tax Amounts reported on Payment Summaries Employee Gross Tax

15 Introduction to the National Employment Standards What are the National Employment Standards? The National Employment Standards (NES) are the 10 minimum standards of employment which cover the following: Maximum weekly hours of work 38 hours per week, plus reasonable additional hours. Requests for flexible working arrangements certain employees can ask to change their working arrangement. Parental leave and related entitlements up to 12 months unpaid leave and the right to ask for an extra 12 months unpaid leave. Also includes adoption related leave. Annual leave four weeks paid leave per year, plus an extra week for some shift workers. Personal/carer s leave and compassionate leave 10 days paid personal/carer s leave, two days unpaid carer s leave as required, and two days compassionate leave as required. Community service leave unpaid leave for voluntary emergency activities and leave for jury service, with an entitlement to be paid for up to 10 days for jury service. Long service leave paid leave for employees who have been with the same employer for a long time. Public holidays a paid day off on a public holiday (unpaid for casuals), except where reasonably requested to work. Notice of termination and redundancy pay up to five weeks notice of termination and up to 16 weeks redundancy pay, both based on length of service. Provision of a Fair Work Information Statement must be provided by employers to all new employees. Who do the NES apply to? The NES apply to all employees covered by the national workplace relations system, however only certain entitlements apply to casual employees. These are: maximum weekly hours two days unpaid carer s leave and two days unpaid compassionate leave per occasion community service leave (except paid jury service) public holidays provision of the Fair Work Information Statement. In addition, casual employees who have been employed for at least 12 months by an employer on a regular and systematic basis and with an expectation of ongoing employment are entitled to: make requests for flexible working arrangements parental leave and related entitlements. There are also two NES that apply to all full time and parttime employees, whether they are covered by the national workplace relations system or not. These are: parental leave and related entitlements notice of termination. How do the NES apply? Terms in awards, registered agreements and employment contracts cannot exclude or provide for an entitlement less than the NES, and those that do have no effect. However, they can affect the operation of the NES in certain ways. For example, they may specify terms that deal with: averaging an employee s ordinary hours of work the cashing out and taking of paid annual leave the cashing out of paid personal/carer s leave extra personal/carer s leave or annual leave in exchange for foregoing an equivalent amount of pay. the substitution of public holidays situations in which redundancy entitlements do not apply. They may also supplement the NES by providing entitlements that are more favourable for employees. A contravention of the NES may result in penalties of up to $12,600 for an individual and $63,000 for a corporation. Contact us Fair Work Online: Fair Work Infoline: Need language help? Contact the Translating and Interpreting Service (TIS) on Hearing & speech assistance Call through the National Relay Service (NRS): For TTY: Ask for the Fair Work Infoline Speak & Listen: Ask for the Fair Work Infoline The Fair Work Ombudsman is committed to providing you with advice that you can rely on. The information contained in this fact sheet is general in nature. If you are unsure about how it applies to your situation you can call our Infoline on or speak with a union, industry association or a workplace relations professional. Last updated: July 2017 Copyright Fair Work Ombudsman FWOFS13.0

16 Fair Work Information Statement From 1 January 2010, this Fair Work Information Statement is to be provided to all new employees by their employer as soon as possible after the commencement of employment. The Statement provides basic information on matters that will affect your employment. If you require further information, you can contact the Fair Work Infoline on or visit The National Employment Standards The Fair Work Act 2009 provides you with a safety net of minimum terms and conditions of employment through the National Employment Standards (NES). There are 10 minimum workplace entitlements in the NES: 1. A maximum standard working week of 38 hours for full-time employees, plus reasonable additional hours. 2. A right to request flexible working arrangements. 3. Parental and adoption leave of 12 months (unpaid), with a right to request an additional 12 months. 4. Four weeks paid annual leave each year (pro rata). 5. Ten days paid personal/carer s leave each year (pro rata), two days paid compassionate leave for each permissible occasion, and two days unpaid carer s leave for each permissible occasion. 6. Community service leave for jury service or activities dealing with certain emergencies or natural disasters. This leave is unpaid except for jury service. 7. Long service leave. 8. Public holidays and the entitlement to be paid for ordinary hours on those days. 9. Notice of termination and redundancy pay. 10. The right for new employees to receive the Fair Work Information Statement. A complete copy of the NES can be accessed at Please note that some conditions or limitations may apply to your entitlement to the NES. For instance, there are some exclusions for casual employees. If you work for an employer who sells or transfers their business to a new owner, some of your NES entitlements may carry over to the new employer. Some NES entitlements which may carry over include personal/carer s leave, parental leave, and your right to request flexible working arrangements. Right to request flexible working arrangements Requests for flexible working arrangements form part of the NES. You may request a change in your working arrangements, including changes in hours, patterns or location of work from your employer if you require flexibility because you: are the parent, or have responsibility for the care, of a child who is of school age or younger are a carer (within the meaning of the Carer Recognition Act 2010) have a disability are 55 or older are experiencing violence from a member of your family or provide care or support to a member of your immediate family or household, who requires care or support because they are experiencing violence from their family. If you are a parent of a child or have responsibility for the care of a child and are returning to work after taking parental or adoption leave you may request to return to work on a part-time basis to help you care for the child. Modern awards In addition to the NES, you may be covered by a modern award. These awards cover an industry or occupation and provide additional enforceable minimum employment standards. There is also a Miscellaneous Award that may cover employees who are not covered by any other modern award. Modern awards may contain terms about minimum wages, penalty rates, types of employment, flexible working arrangements, hours of work, rest breaks, classifications, allowances, leave and leave loading, superannuation, and procedures for consultation, representation, and dispute settlement. They may also contain terms about industry specific redundancy entitlements. If you are a manager or a high income employee, the modern award that covers your industry or occupation may not apply to you. For example, where your employer guarantees in writing that you will earn more than the high income threshold, currently set at $142,000 per annum and indexed annually, a modern award will not apply, but the NES will. Page 1 Fair Work Ombudsman ABN Fair Work Information Statement

17 Agreement making You may be involved in an enterprise bargaining process where your employer, you or your representative (such as a union or other bargaining representative) negotiate for an enterprise agreement. Once approved by the Fair Work Commission, an enterprise agreement is enforceable and provides for changes in the terms and conditions of employment that apply at your workplace. There are specific rules relating to the enterprise bargaining process. These rules are about negotiation, voting, matters that can and cannot be included in an enterprise agreement, and how the agreement can be approved by the Fair Work Commission. You and your employer have the right to be represented by a bargaining representative and must bargain in good faith when negotiating an enterprise agreement. There are also strict rules for taking industrial action. For information about making, varying, or terminating enterprise agreements visit the Fair Work Commission website, Individual flexibility arrangements Your modern award or enterprise agreement must include a flexibility term. This term allows you and your employer to agree to an Individual Flexibility Arrangement (IFA), which varies the effect of certain terms of your modern award or enterprise agreement. IFAs are designed to meet the needs of both you and your employer. You cannot be forced to make an IFA, however, if you choose to make an IFA, you must be better off overall. IFAs are to be in writing, and if you are under 18 years of age, your IFA must also be signed by your parent or guardian. Freedom of association and workplace rights (general protections) The law not only provides you with rights, it ensures you can enforce them. It is unlawful for your employer to take adverse action against you because you have a workplace right. Adverse action could include dismissing you, refusing to employ you, negatively altering your position, or treating you differently for discriminatory reasons. Some of your workplace rights include the right to freedom of association (including the right to become or not to become a member of a union), and the right to be free from unlawful discrimination, undue influence and pressure. If you have experienced adverse action by your employer, you can seek assistance from the Fair Work Ombudsman or the Fair Work Commission (applications relating to general protections where you have been dismissed must be lodged with the Fair Work Commission within 21 days). Termination of employment Termination of employment can occur for a number of reasons, including redundancy, resignation and dismissal. When your employment relationship ends, you are entitled to receive any outstanding employment entitlements. This may include outstanding wages, payment in lieu of notice, payment for accrued annual leave and long service leave, and any applicable redundancy payments. Your employer should not dismiss you in a manner that is harsh, unjust or unreasonable. If this occurs, this may constitute unfair dismissal and you may be eligible to make an application to the Fair Work Commission for assistance. It is important to note that applications must be lodged within 21 days of dismissal. Special provisions apply to small businesses, including the Small Business Fair Dismissal Code. For further information on this code, please visit Right of entry Right of entry refers to the rights and obligations of permit holders (generally a union official) to enter work premises. A permit holder must have a valid and current entry permit from the Fair Work Commission and, generally, must provide 24 hours notice of their intention to enter the premises. Entry may be for discussion purposes, or to investigate suspected contraventions of workplace laws that affect a member of the permit holder s organisation or occupational health and safety matters. A permit holder can inspect or copy certain documents, however, strict privacy restrictions apply to the permit holder, their organisation, and your employer. The Fair Work Ombudsman and the Fair Work Commission The Fair Work Ombudsman is an independent statutory agency created under the Fair Work Act 2009, and is responsible for promoting harmonious, productive and cooperative Australian workplaces. The Fair Work Ombudsman educates employers and employees about workplace rights and obligations to ensure compliance with workplace laws. Where appropriate, the Fair Work Ombudsman will commence proceedings against employers, employees, and/ or their representatives who breach workplace laws. If you require further information from the Fair Work Ombudsman, you can contact the Fair Work Infoline on or visit The Fair Work Commission is the national workplace relations tribunal established under the Fair Work Act The Fair Work Commission is an independent body with the authority to carry out a range of functions relating to the safety net of minimum wages and employment conditions, enterprise bargaining, industrial action, dispute resolution, termination of employment, and other workplace matters. If you require further information, you can visit the Fair Work Commission website, The Fair Work Information Statement is prepared and published by the Fair Work Ombudsman in accordance with section 124 of the Fair Work Act Copyright Fair Work Ombudsman. Last updated: July Fair Work Infoline Page 2 Fair Work Ombudsman ABN Fair Work Information Statement