90% of Businesses Say Employee Legislation is Confusing or Contradictory

Confused

Do you find Employee Legislation difficult to understand?  You are not alone.  New research from the Australian Payroll Association has found that more than 9 in 10 organisations find government legislation or employee awards difficult to interpret, with most agreeing that many of these clauses need to be revised or made simpler.

The finding was derived from a survey of 520 payroll managers across a mix of large organisations and SMEs in various industries by the Australian Payroll Association. It revealed that 90 per cent of payroll managers found interpreting legislation or awards around employee entitlements and payments either confusing or contradictory. This is despite the fact that payroll managers are responsible for interpreting that same legislation and delivering accurate payments and entitlements to Australia’s workforce.

Among these 90 per cent, more than half (58 per cent) had to seek advice from another payroll, HR or legal expert to clarify particular awards or pieces of legislation to enable them to pay employees correctly. A further 18 per cent approached the relevant government body to clarify the information, while 15 per cent attempted to work out the solution without help from an external expert.

The Australian Payroll Association also found that payroll managers in small businesses are calling the tax office or Fair Work for clarification more than large businesses. One in four (25 per cent) of payroll mangers in businesses with up to 50 employees seek advice from the relevant government body.

The FairWork website https://www.fairwork.gov.au/awards-and-agreements has plenty of helpful information and useful tools available, such as, the FairWork Pay Calculator https://calculate.fairwork.gov.au/findyouraward.

However, overall, if you have any questions or concerns on payroll, employee contracts or Award details, then make sure you ask a professional.