As of 1 November 2018, the Fair Work Commission introduced changes across a large number of modern awards. While many of these adjustments were largely wording-related and did not alter the intent of clauses, several key changes directly impact termination of employment practices. Employers must act on these updates to remain compliant and avoid penalties.
Key Termination of Employment Changes
- Final Payments Within 7 Days
- Restrictions on Deductions for Employees Under 18
- Limits on Deductions for Employees Over 18
Why These Changes Matter
- Compliance Risk: Failure to meet the seven-day payment requirement could expose businesses to claims of underpayment or breach of award obligations.
- Fair Treatment of Young Workers: The restriction on deductions for employees under 18 ensures fairer treatment of younger staff entering the workforce.
- Standardised Deductions: The cap on deductions for employees over 18 prevents excessive financial penalties and promotes consistency across industries.
Employer Action Points
- Update Payroll Systems – Ensure processes are in place to meet the seven-day payment deadline.
- Review Employment Contracts – Align notice period clauses with the new deduction rules.
- Train HR and Payroll Teams – Educate staff on compliance obligations to avoid errors.
- Audit Termination Procedures – Regularly review practices to ensure they meet Fair Work requirements.
Summary
The 2018 Fair Work Commission award changes reinforce the importance of timely payments, fair treatment of younger employees, and capped deductions for notice period breaches. For businesses, these updates highlight the need for robust payroll and HR compliance systems.
If you are unsure of how these changes will affect your business, please contact ABILITY GROUP.