Practical legal advice from a commercial perspective.

Eastern Commercial Lawyers

Are you paying your Club employees the correct entitlements under the Modern Award

18-May-2011
Most registered clubs and their employees are now covered by the Registered and Licensed Clubs Award 2010 since 1 January 2010 when modern awards introduced by the Fair Work Act 2009 (Cth) commenced operation to replace awards that existed before that date.
 
It is important to note that included in the Registered and Licensed Club Award 2010 are specific arrangements to assist those covered under it with making the transition.
 
The transitional arrangements have the effect of allowing for minimum wage rates and other entitlements such as loadings and penalties in pre-existing awards to be phased-in over a period of four years in 20% increments commencing on 1 July 2010.
 
This highlights the need for clubs is their capacity as employers to ensure that on 1 July of each year through to 2014 it carries out a recalculation of the wage rates and entitlements payable to its employees taking into account the transitional effects.
 
This will ensure compliance with the law. Failure to comply could result in underpayments being made and carries with it penalties of fines of $30,000 for corporations for each offence and orders by workplace authorities for employers to make back-payments to the underpaid employees.
 
As the second stage of the phasing-in process is due to commence on 1 July 2011 it may be timely for clubs to consider having their current wage rates and entitlements reviewed by a workplace lawyer as a good form of legal risk management.
 

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