EMPLOYERS NOW have until March 2007 to ensure they are compliant with the record keeping obligations set out in the WorkChoices legislation under recent amendments made by the Federal Government
EMPLOYERS NOW have until March 2007 to ensure they are compliant with the record keeping obligations set out in the WorkChoices legislation under recent amendments made by the Federal Government.
Previously, employers had until 26 September 2006 before they could be penalised for a breach of the record-keeping obligations. Under the amended regulations, employers will only be able to be prosecuted for failure to comply with the record-keeping obligations if the breach occurs after 26 March 2007.
The change is advantageous for employers struggling to understand and meet the requirements. “I think this is sensible because employers at the moment are not ready for it,” said Brian Williamson, managing director of Workplace Law.
“My view is that this ought to be not only postponed but totally reviewed and brought into a modern day context.”
The concept of record keeping needs to be revisited, according to Williamson, as it is an issue that takes employers back to hours worked rather than productivity levels.
“I can understand why it may need to be put in place for people who have overtime entitlements but in terms of the average office it’s not appropriate and it comes at great expense,” he said.
“On top of that, there are issues around privacy, so that if you single three people out of having to keep records you’re clearly letting staff know that they earn under $55,000 a year which can be difficult for morale.”
Heather Ridout, chief executive of the Australian Industry Group, said WorkChoices is a very large piece of legislation and, given its size, the implementation period was short.
“This has created a compliance challenge for business and Ai Group has been in dialogue with the government seeking to address a range of technical issues to ensure that the compliance burden is not excessive,”she said.
“The extension in the implementation period will allow time for industry to further consult with the government and for problems to be ironed out.”
The deferral of the compliance date is something that HR should be focusing on, according to Glenn Fredericks, partner at Freehills. “The main ramification for employers is if you haven’t done anything to date, you now have a chance to start doing something.”
Law firm Fisher Cartwright Berriman has recommended employers use the additional six months productively to educate their workforce, review existing practices to determine and implement any changes that are required. “Early implementation of the record keeping requirements will ensure that any initial hiccups are identified, reviewed and amended and will minimise exposure of your business to penalties of up to $33,000.”
Another amendment to WorkChoices is the removal of penalties for employees on sick leave who fail to meet notice or evidence requirements.
HR practitioners will now need to distinguish whether or not an employee has put forward the necessary proof and documentation, according to Fredericks.
“If you’ve got an employee who doesn’t notify you before the commencement of the shift that will be away sick, but then turns up with a medical certificate then those circumstances permit the employee to receive payed sick leave,” he said.
However, if the employee doesn’t provide sufficient notification or the required supporting documentation, then they won’t be entitled to payed sick leave.
ACTU President Sharan Burrow said the changes do not go far enough to ensure the protection of workers from being sacked unfairly. The changes “seem to involve only minor amendments to the Government’s new watered-down sick leave provisions”, she said.
