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Updates on HR and Payroll as we move into 2020

There are regular changes with regard to HR and Payroll matters within the Australian business landscape and keeping up to date can sometimes be daunting. Here are just a few that you may have missed. All are in effect now.

Please ensure you familiarise yourself and review your practice situation to ensure you are compliant. We are here to support and assist as required.

Points to review within your practice are:

  • Personal Leave:

A Federal Court decision on 21 August 2019 changed the way in which Personal Leave was both accrued and taken under the National Employment Standards. This decision is currently under appeal and so may change, however you do need to be compliant with the decision from 2019 as at today.

In a nutshell the decision confirms that full and part time employees are entitled to 10 days personal/care’s leave for every year of employment. The leave is to be calculated in days not hours.

This is a change from how things have traditionally been understood to work and payroll systems do not necessarily allow the calculation in days. This will be particularly relevant for staff who are part time or who do not work the traditional 5 days per week full time hours.

Advice at this stage is if your payroll system does not allow for calculation by days, keep an eye on any personal/carer’s leave taken by permanent staff and ensure you pay personal leave correctly.

Hearings on the appeal of this decision are due to commence in the High Court in the first half of 2020. Full details may be found on the Fair Work site here: https://www.fairwork.gov.au/about-us/news-and-media-releases/website-news/carer-s-leave

  • Superannuation

From January 1, 2020 employers must ensure they pay superannuation on an employee’s gross rate of pay – including on any salary the employee has sacrificed to superannuation.  Salary sacrifice amounts cannot contribute to mandatory employer superannuation contributions.

  • Leave Loading and Superannuation

Is superannuation paid on leave loading? This has been a regular question and the answer is yes, unless you can clearly demonstrate that the loading has a direct connection to lost overtime. In most cases leave loading will attract a superannuation calculation.

Need some further assistance? Prime Practice HR Solutions can help with all of your HR queries, contact us todaywww.primepractice.com.au/hrsolutions

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