Compliance Update – December 2020

The Fair Work Commission, Services Australia and the Victorian Government have announced changes that may impact your HR and payroll.

Changes to overtime rate calculation for casuals
The Fair Work Commissioner has outlined changes to wording to clarify whether a compounding, cumulative or substitution approach to calculating overtime rates for casual employees applies to particular awards. The determinations have been published and can be viewed for each award.

Protected Earnings Amount 2021
Services Australia have published their annual adjustment to the Protected Earnings Amount (PEA) to allow for increases in the cost of living. The PEA is a set minimum amount that must be left after tax and child support is deducted from a person’s wage. The weekly rate that will apply from 1 January 2021 is $383.10. Please note any customer on Aurion version 11.73 or above need only implement the new weekly rate from 1 January 2021.

Pay rise for junior retail workers
A Fair Work Commission decision on Tuesday 24 November requires junior retail workers, under 21 years of age, on level four or above of the Retail Award, to be paid the same as the adult rate. The changes will come into effect Monday 1 February 2021.

Changes to unpaid parental leave entitlements
On 27 November 2020, there were changes to the unpaid parental leave entitlements in the Fair Work Act. The changes include:

  • access to up to 12 months of unpaid parental leave for parents impacted by stillbirth or infant death
  • access to up to flexible unpaid parental leave options.

Paid leave for casuals in Victoria
The Victorian Government will develop a Secure Work Pilot Scheme, which once up and running will provide up to five days of sick and carer’s pay at the national minimum wage for casual or insecure workers in priority industries with high rates of casualisation. The pilot will roll out in two phases over two years with the occupations eligible for each phase to be finalised after a consultation process that will include workers, industry and unions.

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