State System Applies to non constitutional corporations. Generally, if your business operates as a: Sole Trader; or a Partnership. Relevant IR legislation: Industrial Relations Act 1979; Minimum Conditions of Employment Act 1993; Employment Dispute Resolution Act 2008, and Farm Employees Award 1985. Access from www.wairc.wa.gov.au

National System Applies if your business is a: National Systems Employer (Constitutional Corporation) Relevant IR legislation: Fair Work Act 2009 (including the NES); Fair Work Regulations 2009, and Pastoral Award 2010. Access from www.fairwork.gov.au and www.fwa.gov.au

Legislation that applies to both systems Occupational Safety and Health Act 1984 and Regulations; Workers’ Compensation and Injury Management Act 1981; Long Service Leave Act 1958; Superannuation Guarantee (Administration) Act 1992 and Regulations (Cth); Sex Discrimination Act 1984 (Cth); Disability Discrimination Act 1992 (Cth); Racial Discrimination Act 1975 (Cth); Age Discrimination Act 2004 (Cth); Equal Opportunity Act 1984; and Human Rights and Equal Opportunity Commission Act 1986 (Cth).

Legislation – a brief overview Minimum Conditions of Employment Act 1993 Fair Work Act 2009 National Employment Standards 38 hour per week plus reasonable additional hours Personal/carer’s leave Enterprise flexibility Annual leave Parental leave Bereavement leave Public Holidays Personal/carer’s leave and Compassionate leave Parental Leave Community service leave Significant changes/redundancy Long service leave Public holidays Notice of termination/redundancy NES information sheet Maximum weekly hours of work - 38 hours per week, plus reasonable additional hours. Requests for flexible working arrangements - allows parents or carers of a child under school age or of a child under 18 with a disability, to request a change in working arrangements to assist with the child’s care. Parental leave and related entitlements - up to 12 months unpaid leave for every employee, plus a right to request an additional 12 months unpaid leave, and other forms of maternity, paternity and adoption related leave.  Annual leave - 4 weeks paid leave per year, plus an additional week for certain shift workers. Personal / carer’s leave and compassionate leave - 10 days paid personal / carer’s leave, two days unpaid carer’s leave as required, and two days compassionate leave (unpaid for casuals) as required. Community service leave - unpaid leave for voluntary emergency activities and leave for jury service, with an entitlement to be paid for up to 10 days for jury service. Long service leave - a transitional entitlement for employees who had certain LSL entitlements before 1/1/10 pending the development of a uniform national long service leave standard. Public holidays - a paid day off on a public holiday, except where reasonably requested to work. Notice of termination and redundancy pay - up to 4 weeks notice of termination (5 weeks if the employee is over 45 and has at least 2 years of continuous service) and up to 16 weeks redundancy pay, both based on length of service. Provision of a Fair Work Information Statement - employers must provide this statement to all new employees. It contains information about the NES, modern awards, agreement-making, the right to freedom of association, termination of employment, individual flexibility arrangements, right of entry, transfer of business, and the respective roles of Fair Work Australia and the Fair Work Ombudsman.

What is a contract of employment?

The “iceberg” contract EXPRESS TERMS Common Law IMPLIED TERMS Award Legislation

Verbal or Written? The challenge with wholly verbal contracts is they can be: Misinterpreted; Misunderstood; and/or Miscommunicated. Behind every verbal contract are a number of unspoken assumptions that expose your business to risk.

Recommendation Write down the agreed “express terms” of the contract into a letter of offer Your express terms cannot undermine the “implied terms” of the contract (the relevant award and legislation)

Letter of Offer - Template Please refer to the template letter of offer provided. Access a copy online from: http://www.fairwork.gov.au/resources/template s/pages/employing-staff.aspx Amend the template to suit your business needs

Letter of Offer You might include the following “express terms” in your letter of offer: Start date; Type of employment (if fixed term put an end date); Remuneration; Hours of work; Food arrangements; Housekeeping expectations; and Others terms specific to your operations.

Understanding your Award

Hours of Work and Overtime Farm Employees Award 1985 Pastoral Award 2010 Clause 7 Part 4 – Clauses 30 and 31 Hours of work to be negotiated between employee and employer 38 hours per week Averaged over 4 week period Employee to receive at least one full day off each week subject to necessary attention to stock Excess hours will attract overtime at a rate of time and half (150%) No provision for overtime Overtime on Sundays is double time (200%) MinCon specifies 38 hours per week plus reasonable additional Employees may elect time off in lieu of overtime payments Employee must make the request for overtime to be entitled to receive it

Minimum Engagement Periods Farm Employees Award 1985 Pastoral Award 2010 No provision Clauses 10.3 and 10.4 3 hours per shift for casual and part time employees

Public Holiday Penalties Farm Employees Award 1985 Pastoral Award 2010 No penalties Clause 32 Work performed on public holidays attracts a penalty of double time (200%)

Allowances Farm Employees Award 1985 Pastoral Award 2010 Clause 13 Not really an allowance, however, all protective clothing must be provided by the employer (including gum boots) Wet Work Meals Tool and Equipment Travelling Protective Clothing First Aid Use of Personal Vehicle Leading Hand

Special Penalties Farm Employees Award 1985 Pastoral Award 2010 No provision Clause 29 An additional 17% for: Jetting or spraying sheep; or Swabbing sheep for more than 3 days A weekly allowance of $11.82 is payable to employees who must provide their own horse and saddle A weekly allowance agreed between the parties plus license/registration fees for any dog(s) owned by the employee that are used for sheep or cattle work purposes

Charges to the Employee Farm Employees Award 1985 Pastoral Award 2010 Clause 12 Clause 17 $45.60 per week for board and lodging Reasonable costs for accommodation, meat, goods and services.

Meal Breaks Farm Employees Award 1985 Pastoral Award 2010 No provision Clause 15 30 minute break after 5 hours of work Or at a time mutually agreed between parties If a break isn’t provided, double time (200%) is applicable until the break is taken Paid rest break of 10 minutes each morning Additional rest breaks are unpaid

Leave Farm Employees Award 1985 Pastoral Award 2010 Clauses 8, 9 and 11 Clauses 23, 24 and 25 10 days personal/carer’s leave 4 weeks annual leave 17.5% annual leave loading 2 days of paid bereavement leave per occasion, including casuals 2 days of paid compassionate leave per occasion, excluding casuals Parental Leave and other leave entitlements come from the relevant legislation: Fair Work Act 2009 OR Minimum Conditions of Employment Act 1993

Employer Notice Periods * If employee is over 45years and served more than two years = additional week notice Period of Continuous Service Notice Required Not more than one year 1 week More than one year but less than three years 2 weeks More than three years but less than five years 3 weeks More than 5 years 4 weeks

Employee Notice Periods Farm Employees Award 1985 Pastoral Award 2010 No provision Clause 12 Same periods as required by the employer Additional week for employees over 45 doesn’t apply

Current Wage Rates Farm Employees Award 1985 General Farm Hand or Farm Tradesperson Weekly Rate $627.70 Hourly Rate $16.52 Casual Hourly Rate (20% loading) $19.82

Current Wage Rates Pastoral Award 2010 Wage rates applicable from 1 July 2012 Broadacre Farming and Livestock Operations Employees Classification Weekly Rate Hourly Rate Casual Hourly (25% loading) FLH1 $606.40 $15.96 $19.95 FLH2 $624.00 $16.42 $20.53 FLH3 $632.80 $16.65 $20.81 FLH4 $648.00 $17.05 $21.31 FLH5 $659.60 $17.36 $21.70 FLH6 $670.20 $17.64 $22.05 FLH7 $706.10 $18.58 $23.23 FLH8 $758.70 $19.97 $24.96

Comparing your Flat Rate to the Award Rate

Pastoral Award 2010- example FLH2 - $16.42 Casual ordinary rate (+25%) $20.53 Penalty rate for not taking a meal break 200% $41.06 Overtime rate 150% $30.80 Sunday overtime rate Assuming: An evening meal is provided and no other allowances are applicable; and No arrangement has been agreed to extend the time beyond 5 hours before a meal break is taken or penalty rates kick in.

Pastoral Award 2010 -example Casual FLH2 - $20.53 Day Start Finish Break Total Hours Award Rate Daily Total Mon 0800 2100 - 13 5@20.53 8@41.06 431.13 Tues 2000 12 7@41.06 390.07 Wed 2200 1hr 13@20.53 266.89 Thurs 0900 Fri 11 10@20.53 1@30.80 236.10 Sat 30min 12.5 12.5@30.80 385.00 Sun 1900 11@41.06 451.66 Weekly Total 85.5 $2,591.98

Flat Rate - example Flat Rate - $24 per hour Day Start Finish Break Total Hours Daily Total Mon 0800 2100 - 13 312 Tues 2000 12 288 Wed 2200 1hr Thurs 0900 Fri 11 264 Sat 30min 12.5 300 Sun 1900 Weekly Total 85.5 $2,052.00

Is the flat rate compliant? Comparing Rates Pastoral Award $2,591.98 Flat Rate $2,052.00 Difference $539.98 Hourly Difference $6.32 (85.5 hours) Compliant rate for this example = $30.32 (Original flat rate of $24 plus $6.32) This is purely an example and is NOT an recommended casual rate. Individual examples will vary.

Recommendation Undertake some calculations based on your employee timesheets to check your flat rates are compliant with the relevant award entitlements. Remember to factor in casual loadings, applicable allowances, overtime penalties, public holiday penalties, etc