An employer must adhere to a number of rules regarding entitlements that employees to receive. This includes rules about:
- working hours
- rates of pay, including loading rates
- flexible working arrangements
- parental leave
- annual leave and other leave types
- long service leave
- public holidays
- termination and redundancy pay
Some of these rules arise as a result of the National Employment Standards in the Fair Work Act 2009 (Cth). However, some additional rules regarding employee entitlements are can be found in a relevant modern award. ‘Modern awards’ are a legal document created under the Fair Work Act that outline the minimum pay rates and conditions of employment for particular industries and occupations.
Some employers may employ persons who fall within multiple awards due to the scope of the operations of the employer. Practically, this creates an additional administrative burden for the employer of having to ensure that the relevant modern award is complied with in relation to particular employees. There is also the issue of diagnosing the appropriate award that particular employees will fall into, as the entitlements may differ, and it is not always clear which award an employee will fall within. These issues can result in significant time and costs being incurred by the employer, as well as the risk of an unforeseen liability should an award inadvertently not be complied with.
If you are an employer who may have multiple award coverage, or you are an employer who is looking to grow and wish to establish a platform for employee entitlements from which you can operate clearly, you may consider making an enterprise agreement. An enterprise agreement is an agreement that sets out minimum employment conditions and is capable of being created so as to cover all your employees. A modern award will not apply where you have an enterprise agreement in place, which simplifies the process of ascertaining employee entitlements and creates less risk and uncertainty for your business.
The process of making, and the terms contained within, an enterprise agreement must comply with provisions of the Fair Work Act. The agreement must also be approved by and registered with the Fair Work Commission.
The team at Neumann & Turnour Lawyers can assist you with determining whether an enterprise agreement will be suitable for your business and also assist with drafting the agreement and having it approved and registered.
To speak to us about legal issues pertaining to your sporting organisation, or if the time has come to review your policies or governance documents for ease of use and legal compliance, please fill out the form below to arrange a consultation.