Recently a client contacted me to advise that he had received a letter from the Fair Work Ombudsman advising that a past employee was requesting back pay in the sum of $2,800.
He was confused. This person was employed for a couple of months, they parted company inside his probation period. Upon contacting the Fair Work Ombudsman we ascertained that the employee had indicated that he was in fact a Casual during that time and that his employer only paid him the base hourly rate without the 25% casual loading.
I spoke to the client and advised that we simply needed to get a copy of his contract with the person indicating that he was a permanent part time and that would solve the problem.
He indicated that he was a bit busy and hadn’t got the guy to sign a contract. In fact, he didn’t have any contracts with his staff. We negotiated with Fair Work and the past employee, he got a lesser amount than what was agreed.
He had to pay $1,800 to the employee for casual loading. He was never a Casual, but there was no way to prove that. I can assure you, that my client has contracts for all of his staff now!
Please ensure you have contracts in place. They are not a legislative requirement, but could prove costly should you not have them in place.
Karen Vercoe, Director, The HR People
Hi, my name is Karen Vercoe and I am the Director of The HR People. Chan & Naylor have invited us to provide you information about our services and how we can assist you. We are a team of HR consultants with extensive experience in multiple industries and we have national reach.
Each month we will provide an article. These articles will be information about current legislation and/or clients who have had to pay large fines or penalties to staff because they didn’t do the right thing. Often these people were unaware that they were doing the wrong thing.
If you have staff, there is a large amount of legislation that you need to be aware of and our role is to ensure that you are armed with that information so you can make educated decisions. In the event of a fine, you will be best positioned to act on the consequences before rather than after. We will cover contracts of employment, employment relationships, termination, redundancy, sham contracts, unfair dismissal, workplace health & safety and much more.
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The HR People