Training Session 13 04 02 2021 Payroll awards and agreements 5

Summary

The video script discusses the importance of correctly identifying the appropriate award for various professions in Australia, which dictates minimum pay and conditions. Accountants' role is to interpret these awards to ensure accurate payments, avoiding risks associated with incorrect award selection. A modern award covers those not under specific awards.

Takeaways

• 📜 The script discusses the importance of understanding awards or instruments in the context of employment contracts in Australia.
• 🏫 Different professions have specific awards that dictate minimum pay and conditions for workers, such as teachers, clerks, and carpenters.
• 🛠 The role of HR is to identify the correct award for each employee, while accountants interpret the award to ensure correct payment.
• 🔍 Accountants are not responsible for advising on which award an employee falls under; they need to be informed by the employee or HR.
• 📝 Once the award is identified, accountants use it as a formula to calculate entitlements such as meal allowances and lunch breaks.
• 🚫 The risk of choosing the wrong award for an employee is highlighted, especially with a large number of employees.
• 🔑 The need for HR specialists to differentiate between various awards is emphasized to avoid incorrect advice and payment.
• 👨‍🏫 Accountants themselves fall under the modern award, which is a default for those not covered by specific industry awards.
• 💼 The script suggests recommending an HR specialist if the client does not have one, to ensure the correct award is applied.
• 🛑 The consequences of incorrect award application are serious, potentially leading to legal and financial issues.
• 📚 The modern award serves as a catch-all for employees not covered by specific industry awards, ensuring all workers have a baseline of rights and conditions.

Q & A

What is the purpose of an award in the context of Australian professions?

In Australia, an award dictates and determines the minimum pay and conditions for different professions, ensuring that employees in various fields are paid according to industry standards.

Why is it important for employees to be correctly classified under the right award?

Correct classification under the right award is crucial because it ensures that employees receive the appropriate minimum pay and benefits as per their profession's standards, avoiding underpayment and potential legal issues.

What is the role of an accountant in interpreting awards?

The role of an accountant is to interpret the award to ensure that payments and entitlements are made according to the specified rules and conditions, without advising on which award an employee should be classified under.

What should a company do if they are unsure about the correct award for their employees?

If a company is unsure about the correct award, they should consult with an HR specialist or seek recommendations for one, to avoid misclassification and ensure compliance with the correct award.

What happens if a company incorrectly advises on an award and pays employees incorrectly?

If a company incorrectly advises on an award and pays employees incorrectly, it can lead to significant legal and financial issues, as well as damage to the company's reputation.

What is the General Building Award, and who does it cover?

The General Building Award is an award that covers various professions within the construction industry, including but not limited to carpenters and roofers, setting the minimum pay and conditions for these roles.

Can you provide an example of a specific award mentioned in the script?

One specific award mentioned in the script is the Maritime Offshore Oil and Gas Award, which covers the pay and conditions for workers in the maritime and offshore oil and gas sectors.

What is the Modern Award, and who does it cover?

The Modern Award is a default award that covers any employees who do not fall under specific industry awards, including professionals like accountants, setting the minimum terms and conditions for their employment.

Why is it not advisable for accountants to advise on which award an employee falls under?

It is not advisable for accountants to advise on which award an employee falls under because determining the correct award requires specialized HR knowledge, and misclassification can lead to serious compliance issues.

What is the importance of having a clear understanding of an award's entitlements?

Having a clear understanding of an award's entitlements is important to ensure that employees receive all the benefits they are entitled to, such as meal allowances and lunch breaks, in accordance with the award.

How can a company ensure they are following the rules of an award?

A company can ensure they are following the rules of an award by typing in the award details and going through the conditions and entitlements to confirm that all payments and policies align with the award's requirements.