Training Session 14 05 02 2021 Payroll 2 employee termination 9

Summary

The video script discusses the importance of understanding the nature of an employee's termination for accurate payroll calculations, highlighting eligible termination payments such as untaken leave and redundancy payouts. It emphasizes the value of hands-on experience in learning complex HR and accounting tasks, including industry-specific allowances and the role of unions in shaping employee benefits. The speaker encourages self-learning and practical application, noting the intricacies of calculating allowances and overtime in various industries, particularly construction.

Takeaways

• 📊 Termination payments are crucial for final payroll calculations and can affect taxes.
• 🍂 Eligible termination payments include untaken leave benefits, which are taxed less.
• 📝 Redundancy is a specific term for when an employee's position is no longer needed, and it comes with a payout based on tenure.
• 🧮 There's a redundancy calculator available on the Fair Work website to assist with calculations.
• 👷‍♂️ Industry-specific redundancies, like in construction, are paid per week or month and are different from standard redundancy payouts.
• 🏢 Employers are typically responsible for redundancy payments, but industry-specific arrangements may differ.
• 💼 Unions in Australia have a history of fighting for workers' rights but are now seen by some as less necessary due to good pay conditions.
• 📚 Understanding allowances and conditions can be complex due to industry-specific regulations and union agreements.
• 🕒 Overtime and penalty rates differ based on whether an employee is paid hourly or receives a salary.
• 🔄 Salary payments often compensate for occasional overtime and are meant to be flexible for cyclical work demands.
• 📈 Continuous learning and practice in calculating termination payments and allowances are encouraged for professional growth.

Q & A

What is the importance of determining whether an employee left by their own decision or if their employment was terminated?

Determining the reason for an employee's departure is crucial as it affects the final calculations for termination payments, including eligible termination payments such as unpaid leave and redundancy payouts.

What are eligible termination payments and why are they less taxed?

Eligible termination payments include items like untaken leave that an employee is entitled to but hasn't taken due to termination or resignation. These payments are less taxed because they are considered a form of compensation for the termination of employment.

How does an employee's entitlement to redundancy payment work?

An employee who has worked full-time for a company for at least 12 months and whose position becomes redundant is entitled to a redundancy payment. The amount of the payment depends on the length of service and is treated as an eligible termination payment.

What is the role of the redundancy calculator on the Fair Work website?

The redundancy calculator on the Fair Work website helps in determining the appropriate redundancy payment based on the employee's length of service and the specific circumstances of the redundancy.

What does the speaker suggest as the best way to learn about calculating termination payments?

The speaker suggests that the best way to learn is by doing the calculations yourself when the situation arises, then checking your work with HR managers or senior accountants to understand where you might have gone wrong or if you were correct.

What is the concept of industry redundancies as mentioned in the script?

Industry redundancies refer to specific arrangements within certain industries, like construction, where a certain amount is paid per week or month as a form of redundancy cover, acknowledging the transient nature of employment in these sectors.

How does the speaker describe the role of unions in Australia?

The speaker describes unions in Australia as having been a necessary and beneficial movement in the past, but now, in their opinion, they have become somewhat redundant due to the already high standards of pay and conditions in the country.

What allowances are mentioned in the script that need to be considered for employees?

The script mentions allowances such as meal allowances, travel allowances, and allowances for shift work and working at height, which are specific to the industry and can be influenced by union regulations.

What is the difference between an hourly rate and a salary in terms of overtime pay?

An hourly rate typically includes overtime pay at a higher rate (e.g., time and a half, double time), while a salary is considered an all-in rate that compensates for any ad hoc overtime work that might occur.

How does the speaker view the flexibility of the Australian employment system?

The speaker views the flexibility of the Australian employment system as a positive aspect, allowing for easier management and commercial viability, while also accommodating the cyclical nature of certain industries.

What is the speaker's opinion on the necessity of unions in the current Australian employment landscape?

The speaker believes that while unions were necessary in the past, they are now less essential due to the high standards of pay and conditions that are already in place in Australia, suggesting that they may have become corrupt.