Time to review your employment contracts!

Public news

With the commencement of a new financial year and the increase in award wages to be implemented in July, members should take the opportunity to review their existing employment contracts. In most instances, employers in the automotive industry pay well in excess of award rates for qualified tradespersons and have the ability to absorb the recent wage increase. However, many employers also tend to review wages at this time of the year as well as other conditions of employment.

While there is no legal obligation to pass on the increase from the operative date if the employer is paying above award wages, members intending to review employee wage rates at some stage in the next two months are encouraged to also review their employment contracts for relevance and protection.

Members need to ensure that the above award rates paid to employees do in fact fully protect the member from underpayment of wage claims. Unless the appropriate provisions regarding the over Award payments are included in such contracts, members still face the prospect of being exposed to underpayment of wage claims. Employers that operate on a simple verbal contract basis are even more exposed to these claims. Ensuring that you have the necessary documentation in place is critically important in rebutting underpayment claims.

The Workplace Relations Department of the MTA can ensure that you are protected against such claims. Members are encouraged to attend the upcoming IR/HR Training Session scheduled for Wednesday 15 August 2018 at the MTA (81 Greenhill Road), Wayville, where contracts of employment will be discussed, including the operation of ‘offsetting provisions’ which will provide the protection you need. Members interested in attending this training session should click here.

Alternatively, members can contact the Workplace Relations Department and schedule a meeting to discuss your documentation needs further by clicking here.