What a wage audit can do for you
Employees today are better informed about their industrial entitlements than ever before. As a result, applications to Fair Work Australia and the Fair Work Ombudsman are ever increasing.
Recently, clients have asked Livingstones to come into their workplace to provide an internal audit on the current working conditions, namely with regards to Wages and/or General Human Resources (HR) and Industrial Relations (IR) systems and processes.
A Wage Audit is a two step process involving the industrial instrument and the current conditions.
Firstly, a review of the current industrial instrument that applies, such as an Award, Enterprise Agreement or Employment Contract is important in identifying what the appropriate employment terms and conditions are.
Following confirmation of the instrument, we firstly review the classification to ensure the employee is classified at the correct level and receiving the correct pay rate, penalties and allowances, including the transitional items where appropriate.
For a more comprehensive overview of the organisation, a full HR and IR Audit can be arranged. This Audit looks at the wider range of issues which may include:
• Compliance of policies with current legislation and case law;
• Time and Wages records including the Contents of Pay Slips;
• Leave compliance with legislation and the process for taking or directing leave;
• Discrimination and Workplace Harassment procedures and the outcome of complaints or investigations;
• Information Technology usage guidelines including email, social networking, blogging, mobile phone usage, inappropriate web usage, etc.; and
• Performance management systems – i.e. written and oral warnings, serious misconduct and dismissal processes;
There are many benefits flowing from the feedback and recommendations contained in such Audits.
Firstly, legislation is ever changing and the effect of case law means that documents need to be reviewed and kept up-to-date with current trends and changed with significant decisions. This may reduce the organisation’s risk of being penalised by a Fair Work Ombudsman or having to run an expensive unfair dismissal or adverse action claim.
Another major reason to be up to date is to ensure employees are paid the market rates or even above so as to be seen as an employer of choice or an employer that people want to work for. These employers usually have higher retention and better quality of employees.
To find out more about Wage Audits, HR and IR Audits or to discuss how an Audit could be beneficial to you, contact your Livingstones Consultant.
