How to save on Wages AND stay compliant

by | Aug 18, 2015 | Employers Tips

Many businesses are resorting to cutting worker’s hours to save on labour costs, but there’s a better way….

With labour expenses continuing to put pressure on margins, many operators are looking closer than ever at their labour costs and how to cut them. While the default action for most businesses is to cut hours, there are a range of other measures you can take without jeopardising productivity, service levels and profitability.

The following is intended to illustrate just how much easier your life can be for a bit of extra effort.

TIP 1: Ditch your Roster

Have a fresh look at your roster.  Roster scheduling is a complex task, and often left in the ‘too hard basket’ with a lot of dollars lost as a result. With smart planning, considering things like change over times, penalties and when the work is being done, a large portion of the problems regarding scheduling for maximum profitability whilst meeting employee needs can be avoided.

TIP 2: Negotiate Individual Flexibility Agreements

The terms in many Modern Awards are inflexible and don’t take into account your specific operation. Wouldn’t it be great if you could just pay a flat rate for all hours worked?

The short answer is, Yes you can. Most awards includes a flexibility term which enables employers and employees to alter certain terms in the award and replace it with conditions of work which better suit the needs of your business and your employees. This is referred to as an Individual Flexibility Agreement (IFA).

There are strict rules in how these agreements are made and must not undermine minimum employee entitlements. The employee must be ‘better off overall’ on the IFA, compared to the award.

What can be altered in an IFA?

  • arrangements for when work is performed
  • overtime rates
  • penalty rates
  • allowances
  • Leave loading

Award entitlements relating to any of the above can be varied and / or included in a ‘Flat rate’ by agreement between an employer and an individual employee.

IFAs can be of great benefit to both employees and employers and deliver a user-friendly process of bargaining for both employees and employers when flexibility is sought.

It is highly recommended that professional guidance is sought to ensure that an IFA complies with all of the requirements of the Act.

To find more information relating to these topics please book for our Webinar which will be held on Wednesday 2nd of September at 11 am, QLD time zone – BOOK WEBINAR NOW

If you believe that your workplace would benefit from individual agreements with your staff, please feel free to contact us to discuss your options.

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