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dollarsignCONTRACTS OF EMPLOYMENT

Recently a client of theirs had to pay an ex-employee $13120 in back pay.
The employee only worked with them for 16 weeks and during that time they didn’t sell any properties, nor had any listings.  The employer decided to terminate inside the probation period and as they were a commission only employee, let them go.

The Employer and the Employee had a contract, but they didn’t have the correct contract, nor did they have the correct Authorities in place.  The Employer had to pay the Employee their $13,120 reimbursement of non-paid wages.   The Employer paid the back pay and had us amend his contracts and authorities to ensure this doesn’t happen in future.

Contracts are important for all staff, please ensure that you have them.

UNDER PAYMENT OF WAGES

If you aren’t paying correctly the fine can be up to $51,000.   Small business is not exempt from this fine.  If you are unsure, get in contact with us and we can ensure that all of your staff are being paid correctly.
On the reverse side – recently we had a client paying certain staff on the wrong Award and therefore incorrectly.  They were actually paying too much.

CHANGES TO SUPERANNUATION

As from the 1st of July 2014, you will be required to pay 9.5% superannuation

Please keep in mind, that if your contract is a salary package (inclusive of Superannuation) then the employees take home pay will decrease and you won’t pay them any- more.

If the contract states salary plus superannuation, then you are paying the salary amount, plus super, increasing their package.

Keep this in mind for future contracts of employment.  If you would like to control your employment costs, ensure that all of your contracts are inclusive of superannuation.   If you don’t have Contracts of Employment, can I suggest you contact us immediately, so that we can put them together for you.  It is very important that you have Contracts of Employment.  It ensures the employment engagement you have with your staff is very clear.  No anomalies that they can come back and make a claim against you for later.

If you need to make direct contact with Karen , here are her details.  Feel free to call one of the REJS Specialist on 1300 219 522 anytime to discuss further.

Karen Vercoe, Director can be emailed also on E: kvercoe@thehrpeople.com.au

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