Fair Work Presentation April 2013

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Presented by Restaurant & Catering Australia at the Fine Food Show in Perth

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Fair Work Presentation April 2013

  1. 1. Workplace Relations Update April 2013www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  2. 2. Today we shall cover the following: • Overview of the Fair Work System • Overview of the Modern Awards system • Current federal campaigns being conducted by the association • 2013 – The Year of Compliance (August Auditing system) • Penalty rates updatewww.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  3. 3. NATIONAL EMPLOYMENT STANDARDS • maximum weekly hours • requests for flexible working arrangements • parental leave and related entitlements • annual leave • personal/carer’s leave and compassionate leave • community service leave • long service leave • public holidays • notice of termination and redundancy pay • Fair Work Information Statement The NES came into effect in 1 January 2010www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  4. 4. Fair Work Commission (Tribunal) (dispute resolution, unfair dismissal claims, enterprise agreements, adverse action claims) Fair Work Ombudsman (Compliance and enforcement, education and information, transitional assistance)www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  5. 5. Modern Awards: Restaurant Industry Award 2010 Hospitality Industry (General) Award 2010 Fast Food Industry Award 2010www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  6. 6. MODERN AWARDS Modern awards contain: • minimum wages; • types of employment; • arrangements for when work is performed; • overtime and penalty rates; • annualised wage or salary arrangements; • allowances; • leave related matters; • superannuation; • procedures for consultation; and • representation and dispute settlement.www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  7. 7. 2013 – The Year of Compliancewww.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  8. 8. Audits August 2013www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  9. 9. Restaurant and Catering Australia will be working in conjunction with FWO throughout the auditing process Audits will be conducted in August 2013 across Australia The audit will target the following: - wage compliance - record keeping compliance (payslips, leave accrual, TFNs) - SOL: 7 yearswww.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  10. 10. The Year of Compliance Restaurant and Catering members will have access to: •Compliance checklist •IR advisory service •Correct and up-to-date wage tables •Assistance in dealing with FWO auditing processwww.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  11. 11. Overpayment vs Underpayment • Restaurant and Catering is pro-business • There are substantial risks associated with both underpayment and overpayment of wages • Underpayment is obvious – auditing + associated fines • Overpayment risks the profitability of the business • Hence avoiding both ought to be the strategic imperative for any businesswww.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  12. 12. Overpayment vs Underpayment• Sometimes overpayment is required for a competitive advantage• The operators of a café were fined $120,800 for deliberately underpaying two kitchen hands $8600 in wages and superannuation.• The operators of a restaurant have been fined $10,000 for failing to keep proper employment records for more than 70 employees. The company’s employment records did not contain sufficient detail - such as names of some employees, whether they were full-time, part-time or casual, all hours worked and superannuation contributions. www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  13. 13. Challenges to Businesswww.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  14. 14. The Challenges • Cost increases • Super Contribution increase 9-12% • Gas electricity • Labour costs • Minimum wages (increased every year) • Penalty rates • State of the economy • Future economic uncertainty leads to lower consumer sentiment • Hospitality services can be considered a luxury • Skills Shortageswww.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  15. 15. Penalty Rateswww.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  16. 16. Penalty Rates• Can be a major inhibitor for profit margins in the hospitality industry• Weekends and late nights – Penalties apply• Weekends and late nights – Primary hospitality activity www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  17. 17. What are Restaurant and Catering doing? • We realise that business is doing it tough • The current penalty rates systems effects industries differently • For the hospitality industry, penalty rates are inhibiting sustainability • Restaurants are closing • Lobbying Governments for less red tapewww.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  18. 18. What are Restaurant and Catering doing? • Application to vary the Restaurant Industry Award 2010 – submitted to Fair Work Commission • Introduction of 6th and 7th day only for penalty rates • Focused on small business exemptions – “small businesses are particularly exposed to the fragilities of the economy” • Changing classification structure to reflect actual jobs in restaurants and cafes.www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  19. 19. “27A. The commission should create a modern award covering the restaurant and catering industry, separate from those sectors in the hospitality industry providing hotelier, accommodation or gaming services. The development of such a modern award should establish a penalty rate and overtime regime that takes account of the operational requirements of the restaurant and catering industry, including the labour intensive nature of the industry and the industry’s core trading times.” - Minister for Employment and Workplace Relations, Julia Gillard 16 June, 2008www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  20. 20. Annual Wage Review Fair Work Australia Minimum Wage Panel handed down 2.9% wage increase from 1 July 2012. 2013-14 minimum wage determination to be handed down in mid-late June 2013 Complex transitional process continues to 1 July 2014www.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  21. 21. www.restaurantcater.asn.au Website Compliance Tools Member only area Download and modify templates for implementing into your workplacewww.restaurantcater.asn.au Restaurant & Catering Australia © 2011
  22. 22. QUESTIONS ?www.restaurantcater.asn.au Restaurant & Catering Australia © 2011

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