Employment FAQ's for SA Grape Growers

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Do I have to pay staff under an award?
Which award do I use?
What are the current award rates for vineyard workers?
What if the new award rate means I am now paying higher wages?
ExampleA vineyard hand was previously paid at Grade 3 classification. The weekly rate was $622.80. Under the WIA the rate is now $649.60. The Transition Amounts is therefore $26.80. The transition amount is then multiplied by the proportional amount (Table One):$26.80 X60% = $16.08Deduct this amount from the WIA award rate, i.e. $649.60 - $16.80 = $633.82. This is the rate for 2011/12
Table One Proportional Amounts
First full pay period on or after
| 1 July 2010 | 80% |
| 1 July 2011 | 60% |
| 1 July 2012 | 40% |
| 1 July 2013 | 20% |
Can I have an individual agreement with my employees?
If my worker has an ABN and invoices me, do I have to comply with award conditions, NES and/or Fair Work Act 2009?
Full-time, part-time and casual – what’s the difference?
- employed to work an average 38 hours per week
- entitled to paid leave and public holidays.
- works less than 38 hours per week
- eligible, pro-rata, to the same pay rate and conditions as a full-time worker
- paid by the hour, with a loading (in 2011/12 this is 22%)
- must be rostered on for a minimum 4 hours for each shift
- eligible for penalty rates
- casuals, other than those employed irregularly, who have been employed for 12 months they have the right to convert their contract to permanent. Within four weeks of the employee reaching 12 months of casual employment, the employer must give them notice in writing providing the option to convert to permanent. The employee can elect to remain as a casual but can convert to permanent at any time after. If they do convert to permanent they can’t revert to casual without the employer’s agreement.
What are the maximum hours that an employee can work?
- Employees can work a maximum of 38 hours per week plus ‘reasonable additional hours’.
- 10 hours is the maximum time on any one day, but this can be extended to 12 hours if the majority of workers agree
- The maximum time that can be worked without a break is 5 hours (breaks must be between 30 and 60 minutes).
- For shift-workers the maximum is 4 ½ hours but this can be extended to 6 hours by agreement:
- For part-timers and casuals engaged to work no more than 6 hours on that shift
- Where the worker is working a ‘short day’ (see ‘Is there any flexibility in when hours are worked?’)
What hours can I roster staff on?
- Between 6am and 6pm on weekdays and 8am-6pm on the weekend
- From 1 November to 30 April weekdays starts are extended to 5am
- The spread of hours can be varied with the agreement of a majority of employees
- Rosters must be continuous – e.g. employees can’t be made to do a shift in the morning and then come back a few hours later to start another shift
What about shift-workers?
- Afternoon Shift- any shift that starts after 6pm and ends before midnight
- Night Shift – any shift that ends after midnight and at or before 8am
My staff often have to work after hours, eg during harvest – can they still do that?
How many shifts in a day can my employees be rostered on?
Is there any flexibility in when hours are worked?
- 19 days of eight hours in each four week period, with either a fixed or rostered day off;
- nine days of eight hours and one day of four hours in each fortnight with either a fixed half-day off or a rostered half-day off at the beginning or end of the working week;
- four days of eight hours and one day of six hours in each week, with the six hour day being at the beginning or end of the working week; or
- any other arrangement agreed to by the employer and the majority of employees directly affected.
Can you explain the difference between penalty rates and overtime?
When do I pay penalty rates?
- once an employee’s hours exceed 7.6 hours on any day; or
- The employee works outside 6am-6pm (5am-6pm November 1st to April 30th ) Monday-Saturday.
- Monday – Saturday: 50% (i.e. time and a half) for the first two hours and then 100% (double time)
- Sundays: double time, for the overtime component
- Public holidays:
- double time and a half for the overtime component
- employees must also be paid for a minimum of four hours work
- The standard penalty rate for an employee who works on afternoon or night shift is 15% on top of their normal rate
- This increases to 30% when the employee
- works night shift only; or
- remains on night shift for a longer period than four consecutive weeks; or
- works on a night shift which does not rotate or alternate with another shift or with day work so as to give the employee at least one third of their working time off night shift in each shift cycle,
- For work from midnight Friday to midnight Saturday the rate is time and a half, Sundays are double-time and public holidays double-time and a half.
What are the rules regarding rest periods after overtime?
- Where an employee works overtime on one day they must be allowed a 10-hour break before they start ordinary hours on the next day. They must also be paid for those break hours that overlap normal hours.
For example, someone whose normal shift starts at 9am works overtime on a Tuesday until midnight. They are eligible for a ten hour break, i.e. from 1200 to 1000. The employer must pay them for the period 8am-9am. - Where an employee is instructed to resume or continues work without having the 10 hour break, they must be paid at the rate of double-time until they are released to take the 10 hour break. The same conditions as above apply
Can overtime be taken as time off?
Do I need to have a written employment agreement or contract?
Can I include a probation period?
What does a written agreement need to include?
- Names and addresses of employer and employee
- Employment commencement date (and end date if a fixed term contract)
- Whether the position is full-time, part-time or casual
- Start and finish times and hours per week and any expectations regarding out-of-hours work and/or overtime
- Award name if paying under an award
- Award classification and pay rate
- Pay periods (eg weekly, fortnightly)
- Details of any probation period
- Any workplace requirements (e.g. OH&S, dress standard, use of own tools)
I only want to employ someone for a fixed term
Can I have an agreement with an employee that has different conditions to the award?
- when work is performed;
- overtime rates;
- penalty rates;
- allowances; and
- leave loading.
What are National Employment Standards?
- Maximum weekly hours of work - 38 hours per week, plus reasonable additional hours.
- Requests for flexible working arrangements - allows parents or carers of a child under school age or of a child under 18 with a disability, to request a change in working arrangements to assist with the child’s care.
- 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.
- Annual leave - 4 weeks paid leave per year, plus an additional week for certain shift workers.
- 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.
- 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.
- 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.
- Public holidays - a paid day off on a public holiday, except where reasonably requested to work.
- 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.
- Provision of a Fair Work Information Statement - employers must provide this statement to all new employees. It contains information about the NES, modern awards, agreement-making, the right to freedom of association, termination of employment, individual flexibility arrangements, right of entry, transfer of business, and the respective roles of Fair Work Australia and the Fair Work Ombudsman.
Who can I legally employ?
- A permanent resident of Australia
- A person with a valid Visa*:
- Check that the visa is the original, not a copy and that the visa date has not expired
- Check of there are any limitations (eg 20 hours per week)
- Children under 16 cannot be employed during school hours or any job outside those hours that might interfere with their education
I only employ family members, does that make a difference?
What documents do I give to a new employee?
- A copy of the employment agreement (signed by employer and employee – parent/guardian if employee is under 18)
- Tax file declaration form (not available as a download, usually available at newsagents or ring 1300 720 092)
- Superannuation Choice of Fund form (download)
- A copy of the Fair Work Information Sheet
An employer is also legally required to make a copy of the award available to employees, e.g. pinned to a notice board, on a lunchroom table, etc.
What do I have to register for if I employ staff?
- Through the Australian Tax Office (:
- an ABN*
- a separate tax file number (TFN)* if you are operating as a partnership, company or trust. Sole traders use your individual TFN
- Register to collect PAYG (Pay as You Go) Tax*
- You are legally required to register with WorkCover if your total wage bill is more than $11,155 (in 2011) or unless a claim is lodged by a worker. However, if you cross the threshold, you must register with WorkCover within 14 days.
- If you provide housing, a vehicle or any other benefits to employees for private use then you are advised to register for Fringe Benefits Tax (FBT)
- Payroll Tax when the Australian wages bill of an employer or group exceeds $50,000 in any month.
What employment records do I need to keep?
- employment agreements and any documents the employee supplied during recruitment
- Leave records: annual, sick, long-service, study and special leave
- Wages paid, including penalty rates and allowances
- Tax file declaration form and PAYE tax records
- Records of any accidents, injuries and any WorkCover claims
- Superannuation records:
- the date and amount of super you paid for each employee
- how you worked out the level of super you paid
- that you have offered your eligible employees a choice of super fund
- the details of the super fund that you paid your employee's super into.
- Copies of any licences, registrations or permits that an employee needs to do their job, e.g., ChemCert, car, first aid
- Employee bank details
- Emergency/next of kin contact details
- Any communication between employer and employee
- Records of performance reviews, change of duties/classification
I want to pay Piece Rates
- that the piecework rate will be paid instead of the minimum wages specified in clause 16—Classifications and adult minimum wages of the Wine Industry Award 2010;
- that the piece worker won’t be paid a meal allowance, won’t work ordinary hours of work and won’t be paid overtime and penalty rates; and
- the date the agreement commences to operate.
If engaging a contractor to supply vineyard labour, it is advisable to check they are being paid in accordance with the award
What if provide a house or board for an employee?
If you are charging rent then you must have a Residential Tenancy Agreement
How often do I have to pay wages?
Wages must be paid either weekly or fortnightly. This can be altered (e.g. to monthly) but only if the employee agrees in writing. Wages must be paid by cash or electronic funds transfer (EFT).
Do I have to provide a pay slip?
What needs to be on the pay slip?
- Legal and/or trading name of employer
- Employee name
- Date of payment (eg 19/06/09)
- Period of payment (eg 08/10/11 – 15/10/11)
- Payment details (hours, rate, gross, tax and nett pay)
- Overtime hours worked and rate of pay
- Details of any deductions (eg super)
- Amount and the name of the superannuation fund
- Annual leave and sick leave accruals
You can download a pay slip template from the Fair Work Ombudsman
How do I find award rates?
Download or obtain a copy of the Wine Industry Award 2010 from Fair Work Australia. Go to ‘Minimum Wages and Related Matters’ to get the current pay rates. The same section has guidelines for calculating piece rates
What records do I need to keep?
What if I over pay or under pay wages?
What if I employ labour hire contractors?
You are advised to further protect yourself by providing a copy of the award and pay rates to the workers, e.g. where they have lunch, etc.
Who do I have to superannuation to?
- employees that earn $450/month or more and who are 18-69 years.
- contractors that you engage principally for labour, even if they quote an Australian business number (ABN). This does not apply to labour hire companies
You can get more information from http://www.ato.gov.au/content/00108082.htm
How much do super do I have to pay?
The rate is currently 9%. Super is paid on ordinary hours of work, including casual loading, but not on overtime.
How often do I need to pay super?
- 28 October
- 28 January
- 28 April
- 28 July
Who chooses the super fund?
Where can I get details on my obligations regarding superannuation?
What should I do if I haven’t been paying super when I should have been?
What are the rules around annual leave?
- Full-time workers are entitled to 20 days paid annual leave per annum.
- Part-time workers have the same pro-rata entitlement
- Shift-workers are entitled to 5 weeks annual leave. A shift-worker is someone that regularly works Sundays and public holidays. Where a worker does occasional shift-work, an extra half days annual leave should be provided for every full month they do shift-work.
- All are entitled to a 17.5% leave loading
- Payment is due when leave is taken or on termination.
- Casual workers are not entitles to annual leave
What about sick leave?
Long Service Leave Entitlements
- 1.3 weeks for each completed year.
- Long Service leave maybe taken as leave or, cashed out by agreement between employee and employer (be sure to complete download and complete this form if you do)
- Not payable for incomplete years.
- Maybe payable on a pro rata basis between the 7th and 10th year but employer may withhold payment if employee is dismissed for misconduct between 7th and 10th years.
- No leave loading is payable with Long Service Leave.
- Payable on termination if employee has worked at least 7 years.
Do I have to pay parental leave?
Paid Parental Leave (PPL) commenced on 1 January 2011. Eligible parents are entitled to receive an amount equal to the Federal Minimum Wage rate for up to 18 weeks. The employer makes the payment but Centrelink is required to provide the funds to the employer before payment to the employee is due. Download Parental Leave Toolkit
What do I do if it looks like I’m going to have to warn or dismiss a casual?
What do I do if it looks like I’m going to have to warn or dismiss a part-time or full-time employee?
- Notify the employee in advance that you need to meet them to discuss problems with their work. Invite them to bring a support person – they are entitled to have anyone with them
- Have another person in attendance to record the meeting – but take and keep your own notes of the meeting
- Explain where the employee is not performing to contract and provide what they need to do to improve and retain their job and give them reasonable time to reach the required standard
- If you intend to proceed with a warning do so the following day or another reasonable period of time to consider the fact
- Provide the warning in writing and ask the employee to sign that they have received it. If they refuse to sign, ask why and record that response in your notes
- Under no circumstances should an employer decide the outcome prior to giving the employee the opportunity to explain their circumstances.
If you ultimately proceed with dismissing the employee you need to ensure that all outstanding entitlements (e.g. unused leave) are paid on that day or the following. This includes the minimum period of notice except for dismissal for serious misconduct.
What if I need to dismiss someone immediately?
- theft, fraud,
- intoxication or under the influence due to alcohol or drugs (which may include legal prescriptions)
- violence and
- serious breaches of occupational health and safety procedures.
If the employee is being dismissed for an alleged criminal action (theft, fraud, violence, etc) the employer should report the offence to the police. This could be important if an unfair dismissal claim is lodged.
What should I know about unfair dismissal claims?
- In a small business* the employee must have been employed for 12 months
- In any other business, the employee must have been employed for 6 months
- someone dismissed during a probationary period
- where someone was employed for a fixed term and they completed that term
- a ‘true’ casual
- by a contractor
- employees who resign
- employees earning more than $118,101 (2011/12 financial year)
The Small Business Fair Dismissal Code has a checklist to assist employers undertaking dismissal procedures. Fair Work Australia also has a guide to unfair dismissal.
Is there a difference between making someone redundant or retrenching them?
*A small business is defined as having less than 15 employees.
Is it true that union officials have a right of entry to my business?
- hold a valid right of entry permit, issued by Fair Work Australia – ask to see it before allowing entry.
- give at least 24 hours’ notice before entering and entry can only occur during working hours.
- set out the basis on which he or she has entry rights
- comply with any reasonable request from an employer that discussions or interviews take place in a particular part of the premises and that they take a particular route to reach that location
- comply with any reasonable occupational health or safety request.
If I only use contract labour can any union official enter my business?
Yes, if the criteria outlined in ‘Is it true that union officials have a right of entry to my business?’applies to the contractor.

