As an SME owner in Australia, you’re likely already aware of the complexities of tax, BAS, and payroll for your business – thankfully, most of us have a trusted accountant to help navigate those waters.
But have you considered the potential pitfalls of common employment myths? Misconceptions about how you manage your people can be just as costly as missing tax obligations – sometimes even worse.
Let’s debunk three prevalent myths that could be impacting your business right now.
Myth 1: Casuals in WA don't accrue Long Service Leave.
False. This is a significant misconception that many (and we mean many) SME owners find themselves making.
While often overlooked, casual employees do accrue long service leave in Western Australia (generally this applies to other states as well- with variations needing to be checked).
Accurately tracking their years of continuous employment and hours worked is crucial to what you will need to calculate. This is because after becoming eligible, their calculations are based on their average weekly hours over the entire period of continuous employment.
This includes averaging hours even when work wasn’t provided (acknowledging the nature of casual employment). It’s vital to understand the specifics of averaging hours and what absences are excluded so always refer to current legislation for precise details.
Read More: Long service leave for casual and seasonal employees (WA)
Keep records of service and hours worked
Myth 2: You only pay a day's notice during probation
False. Probation doesn’t negate minimum notice periods.
While a probationary period allows you to assess an employee’s suitability, terminating their employment, even during probation, generally requires at least one week’s notice. Please note that you should always check individual contracts, agreements and the Fair Work or Minimum Condition of Employment (WA) Acts for specific requirements, -as some circumstances might vary.
Such as more than one weeks’ notice (e.g. we have seen some SME including longer and fixed notice periods in contracts without making a differentiation with probation periods)
Read More: Notice Periods (Fair Work)
Read More: Notice Periods (WA System)
Myth 3: Casuals don't get paid leave
[Mostly] False. This can be a tricky one to remember.
While casuals generally don’t receive paid annual or sick leave, one form of paid leave that is sometimes overlooked is paid family and domestic violence (FDV) leave under the Fair Work system.
Casuals still retain entitlements to unpaid leave, such as carer’s leave and compassionate leave.
Important Note: State system employers and employees should note that FDV leave, parental leave and notice of termination National Employment Standards (NES) entitlements are the only ones that apply to state system employees.
Read More: Family and domestic violence leave
Casuals still receive *paid* leave in some cases.
Where to now?
As with many of the practical solutions we help clients put in place, the simplest action is to start small and follow up on:
- how your payroll records (and timesheets) are being kept – do they help show service and average of hours worked for casuals?
- what provisions of your contract might expose you to a contractual obligation.
And if it’s all still confusing?
Contact one of our team who will be happy to help you navigate these matters – simply click the link below and reach out to us now.
