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Investing in a review of your organisation's employment contracts and agreements is a beneficial process for ensuring ongoing compliance and consistency across an organisation.
Engaging professionals to complete the review is the first step. Ensuring proper implementation of these documents is the second. Unsigned employment agreements, inconsistent creation and the failure to give an employee the correct contract on commencement are common examples of employers who get this implementation stage wrong.
An all too common example is the one below.
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John is a site manager in the Queensland site of a manufacturing company. He has been asked by HR in Sydney to draft an employment contract for Jane, a new secretary who will be working in his department. The HR team directs him to the available template contract for John to use. In drafting the agreement John decides to remove a clause relating to overtime and includes an hourly rate of pay that is below the minimum wage for a clerical employee in Queensland.
After getting advice from her friend, Jane brings an underpayment claim against the company. Jane has now been working for 18 months and believes she is entitled to back pay. After lengthy Court proceedings the company is found to have underpaid Jane $13,000. Jane is awarded back pay and the company is ordered to pay a penalty for breach of an industrial instrument.
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Adequate training of managers is an essential part of ensuring that the organisation adheres to its legal obligations. Sophisticated drafting of employment documents and industrial instruments alone will not ensure compliance - implementation and ongoing management are critical.
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Underpayment of employees has been the subject of many Workplace Ombudsman prosecutions in recent years. Reliance on incorrect advice or an incorrect understanding of "industry practice" may not be a successful defense before the Court.
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The development of contracts and agreements are a significant investment for any organisation. PeopleInsite can ensure the ongoing creation of contracts and agreements for your organisation is consistent and up to date.
Empower business units to create and manage employment documentation whilst maintaining head office control over document content.
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Signed employment records can be uploaded and assigned to individual employees ensuring every copy of every agreement is safely stored on the company's own system.
Defending a costly underpayment claim is far simpler having access to complete employee files online via PeopleInsite. Paper based systems can take days/months to locate important documentation and often the files are missing crucial employee information.
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For more information on PeopleInsite, contact on (02) 9964 9716 or email info@peopleinsite.com.au
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