Business Bootcamp - Contracts and Procedures

ContractsPolicy & Procedure

Lizzy Boots

Getting it Right!Keeping it Right!

Ensure Your BusinessIs Up To Date with

the New IR Laws and Legislation

What is a Contract of Employment?

When an employee accepts an offer of employment (oral or written), a contract of employment has been established

Contracts

Under this contract, both employer and employee have certain rights and obligations

Employer Obligations

• Pay the correct wages• Reimburse employees for work related

expenses• Ensure a safe working environment• Act in a professional manner• Forward tax instalments to the ATO• Make Superannuation payments

Employee Obligations

• Obey lawful and reasonable instructions of the employer

• Exercise due care in the performance of their duty

• Account for all money and property received while employed

• Make available to the employer any product or process invented while employed

What about family business?

• A person employed by his / her spouse or parent is not considered an employee under Industrial Relations Act 1996.

• However – under common law they would be considered an employee!

Minimum Conditions

The new Modern Awards and the National Employment Standards (NES) set the minimum standards of employment

10 NES Entitlements

Maximum weekly hours of work – 38 hours per week, plus reasonable additional hours

10 NES Entitlements

Requests for flexible working arrangements – allows parents or carer’s of a child under school age or a child under 18 with a disability, to request a change in working arrangements to assist with the child’s care

10 NES Entitlements

Parental leave and related entitlements - up to 12 months unpaid leave for every employee, plus a right to request an additional 12 months unpaid leave, and other forms of maternity, paternity and adoption related leave

10 NES Entitlements

Annual leave - 4 weeks paid leave per year, plus an additional week for certain shift workers

10 NES Entitlements

Personal / carer’s leave and compassionate leave - 10 days paid personal / carer’s leave, two days unpaid carer’s leave as required, and two days compassionate leave (unpaid for casuals) as required

10 NES Entitlements

Community service leave - unpaid leave for voluntary emergency activities and leave for jury service, with an entitlement to be paid for up to 10 days for jury service.

10 NES Entitlements

Long service leave - a transitional entitlement for employees who had certain LSL entitlements before 1/1/10 pending the development of a uniform national long service leave standard.

10 NES Entitlements

Public holidays - a paid day off on a public holiday, except where reasonably requested to work.

10 NES Entitlements

Notice of termination and redundancy pay - up to 4 weeks notice of termination (5 weeks if the employee is over 45 and has at least 2 years of continuous service) and up to 16 weeks redundancy pay, both based on length of service

10 NES Entitlements

Provision of a Fair Work Information Statement - employers must provide this statement to all new employees. It contains information about the NES, termination of employment, and the respective roles of Fair Work Australia and the Fair Work Ombudsman

Award Flexibility Agreements

• A written arrangement with an existing employee

• Change the way an award applies - allows you to pay the employee more and not have to pay:– Loadings (annual leave)– Allowances (meals , dry cleaning)– Penalties and overtime

Annualised Salary• Clause in Contract

Your annualized salary is set at $55,000 pa.Your base salary is above the standard award payment and includes payment for “reasonable” additional overtime that may be required from time to time to fulfil the requirements of your role. Your base salary also includes payment of all loadings and penalties applicable under the award. No additional penalties or loadings are payable under this agreement.

Annualised Salary

Must pass the “better off overall” test

An Earnings Guarantee

• Written guarantee of earnings over $118,100 (adjusted 1 July each year)

• Prevents a Modern Award from applying to their employment

POLICY & PROCEDURES

Policies and Procedures are the strategic link between the Company's Vision and its day-to-day operations

POLICY & PROCEDURES

Well written policies & procedures allow employees to understand their roles and responsibilities within predefined limits

POLICY & PROCEDURES

Policies & procedures allow management to guide operations in the business without constant intervention

Provide a base line for expectations of performance and behaviour

POLICY & PROCEDURES

A "Policy" is a predetermined course of action which is established to provide a guide toward accepted business strategies and objectives

Is a direct link between an organization's "Vision" and their day-to-day operations.

POLICY & PROCEDURES

The ultimate goal of every procedure is to provide the reader with a clear and easily understood plan of action required to carry out or implement a policy

POLICY & PROCEDURESPolicies:• Are general in nature• Identify company rules• Explain why they exist• Tells when the rule applies• Describes who it covers• Shows how the rule is enforcement• Describes the consequences• Are normally described using simple sentences & paragraphs

POLICY & PROCEDURES

Procedures:• Identify specific actions• Explain when to take actions• Describes alternatives• Shows emergency procedures• Includes warning & cautions• Gives examples• Shows how to complete forms• Are normally written using an outline format

Policy & Procedure

Employment• Code of Ethics and Business Conduct • Confidentiality Agreement • Social Media - Email, Internet & Computer

Usage Policy • Harassment (Fair Workplace) Policy • Mobile Phone Policy • Working from Home Policy• Annual Leave Policy

Policy & Procedure

Workplace Health & Safety• Disposal of Sharps Policy• Drug & Alcohol• Manual Handling / Risk Assessment• Smoking in the workplace

Policy & Procedure

Managing Performance and Termination• Conduct Performance - Warning Letters• Personal & Carer’s (Sick) Leave• Workplace Grievance and Dispute

Resolution• Abandonment of Service • Termination Policy • Exit Interview • Statement of Service - Leaving Employee

More Information

• Visit www.bootsandall.com.au

• Or call 0414 644463 for consulting advice on employee related matters

Thank You!

I hope you have found this day valuable.

Now lets enjoy a few drinks together!