Seven pay rules employers often break

Tracy Angwin, CEO at Australian Payroll Association, has revealed the seven rules surrounding employee pay and entitlements that employers commonly break.

Ms Angwin says employee-related federal and state-based legislation and employee awards change regularly.

“Therefore,” she said, “companies need to be aware of their legal obligations to enable them to protect both their organisation and their employees.

“Many employers get caught in the trap of doing what has always been done in the past, without tracking legislative changes that could impact their employees and their organisation, and implementing those changes.

“This is what it is vital to have a well-trained and qualified payroll expert in your organisation, as well as external payroll consultants who can to ensure employee pay and entitlements are calculated correctly.”

The seven rules

  1. Employers must pay employees for team meetings and training outside of work hours.
  2. Employers must pay an employee who resigns the full notice period if they request the employee leaves early.
  3. Employers cannot pay junior or trainee employees a ‘trainee rate’.
  4. Compassionate leave is not limited to two days a year.
  5. Leave balances aren’t required to be provided on pay slips.
  6. Employers’ tax, insurance and leave obligations for ‘contractors’ might need to be the same as for employees.
  7. Lengthy unpaid work trials and unpaid internships not allowed if the employee does ‘productive work’.

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