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The significance of the Fair Work Commission Modern Awards Pay Database API, the implications for casual employees, and the crucial information required on pay slips.

Updated: 2 days ago

e-PayDay e-PaySlip and the importance of showing casual loading seperately.

The Fair Work Commission MAPD API offers significant advantages to Digital Service Providers (DSPs) by enabling them to create powerful features benefiting employers. Data on Awards, Classifications, Wage-Related Allowances, Expense-Related Allowances, and Penalty Rates is provided. The focus of this post is on the Classification records.

My issue is that some data in classifications defines the minimum hourly rate, including the casual loading. As the casual loading must be shown separately on pay slips, per the Fair Work Regulations 2009 S3.46(1)(g), classification hourly rates that include the casual loading must be modified to avoid non-compliance. What is being supplied is the “loaded” rate; we need the minimum hourly rate (the lowest common denominator) and the casual loading rate.

There are additional complications with the requirement to show casual loading separately when the calculations are complex, as with the Vehicle Repair, Services and Retail Award 2020 [MA000089] 27.3 Casual rates.

There is a need to clearly distinguish the amount of casual loading in an employment contract and show it on a pay slip.

Outcomes from the WorkPac Pty Ltd v Skene [2018] FCAFC 131 and WorkPac Pty Ltd v Rossato [2020] B73/2020 court cases identified the need to clearly distinguish the amount of casual loading in an Employment Contract and shown on a Pay Slip. Although the regulation section for pay slips creates further confusion due to the last sentence in the guidance,

Using the General Retail Industry Award [MA000004] as an example, instead of specifying only one loaded rate of $32.06 per hour, it is necessary to have at least two rates:

  • A base hourly rate of $25.65 per hour;

  • A 25% casual loading of $6.4125 per hour to compensate the casual employee for the absence of one or more relevant National Employment Standard entitlements.

The pay slip should differentiate between the base hourly rate and the casual loading. Where there are penalty rates, the casual loading should also be shown separately.

For example, John is a casual adult employee who works from Monday to Friday for 20 hours, Saturday for 3 hours, and 2 hours on Sunday.

The Pay Slip will show the following details.

The Casual employee loading offset by employers explained.

The Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2021 brought significant changes to casual employment in Australia and is worth noting.

Employers can offset casual loading amounts against claims for leave and other entitlements in certain circumstances. Casual loading payments are considered when calculating the entitlements owed to the employee for NES entitlements.

If a casual worker is later considered a permanent employee, providing the casual loading shown separately on the pay slip demonstrates that they have been paid in recognition of not having access to most paid leave entitlements. This approach significantly reduces a casual worker's ability to receive payment twice if challenged, thereby preventing any form of "double dipping."

Legislation should also mandate the inclusion of the Award and Classification, providing transparency in employment for employees. 

To help ensure employers' compliance with the Award, the Award and Classification should also be provided on a pay slip. If an Enterprise Agreement is in place, it would be shown on the pay slip along with the name of the underpinning Award.

e-PayDay Go sample pay slip showing the Award and Classification.

Employees benefit from clearly identifying the Award and Classification they are being paid under, with minimum effort needed to implement this requirement. This straightforward inclusion offers additional assurance and the capability to verify that the employee is being paid accurately. This information is the foundation of the pay calculations.

Updating your Modern Award rates when there are changes to the National Minimum Wage has been made easier using the Fair Work Commission MAPD API.

Update Awards dashboard notification.

Our newly launched Update Awards feature results from integrating the Fair Work Commission MAPD API. This tool helps streamline the complex process of adjusting wages in response to changes in the National Minimum Wage set by the FWC. Users also now have the option to decide whether their above-award rate should be adjusted in line with the increase or if the change should be absorbed.

e-PayDay Go update the Fair Work Commission Modern Awards tool.

This is another example of the potential outcomes of having direct access to Government data to help employers meet their payroll compliance obligations.

We continuously work on creating new features and tools to help employers fulfil their payroll responsibilities, and we have numerous exciting new additions on the way.

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1 Comment

Jul 08

What a terrific advantage to employers, well done 🏆

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