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Awards & Rostering    |   

Creating a roster that maximises student visa hours while remaining below the 20-hour-a-week limit is a big challenge for businesses. With our customers employing anything from 15 to 2,000 student visa workers, this was a major pain point.  The maximum fine for breaching this condition is AU$63,000. For each breach. So giving as many hours as possible to student visa workers without breaching is in both the employee and the employer’s interests. It maximises productivity for businesses and provides suitable wages for staff. Introducing a suite of features that makes this important process — and managing staff qualifications in general — easier. To figure out the best approach to solve this problem, we conducted extensive research with a number of our customers across a range of industries.  Above: Tanda clients rated managing student visa workers as a major pain point In a nutshell, expiry dates and term dates are the hardest parts to keep track. Overall, Tanda users indicated that the overall student visa hours and qualification tracking process is very difficult. How to manage your student visa workers in Tanda This multi-faceted issue requires a multi-faceted solution. When set-up correctly, this combination of features and alerts work together to ensure visa worker hours get close to 20/week, but not over. It’s a foolproof way to avoid the long list of possible sanctions resulting from non-compliance. Key Alert for maximum hours. If an employee is at risk of going over their maximum hours, the manager will receive a Key Alert. Set effective dates. Identify a date range (i.e. term time) in which the hours restriction applies. Give student visa workers more hours during term breaks. Learn more Prevent publishing roster if hours exceeded. The roster cannot be published if at least one staff member would be working over the maximum hours, or a visa has expired. Employee self-service. Staff can update their qualifications and submit term dates, with managers being notified for approval. Staff need to have access to the desktop version of Tanda (my.tanda.co).  Notifications to the right people. Select which permission level receives notifications on qualification updates and upcoming expiry dates. Learn more Permissions for the right people. Change who can edit and approve all qualifications. Audit trail of qualifications. See a detailed audit trail of creation, updating, and approval of qualifications. Read the help article to learn how to set it up. How it helps with general qualifications While these features were created with managing student visas in mind, these can also make managing other qualifications easier. For example, it can work for fatigue management for drivers. Find out more.

Announcing Student Visa Management: How to avoid a $63,000 fine and maximise visa workers’ hours

13 January 2020

Awards & Rostering    |   

The Fair Work Commission has announced amendments to 22 modern awards that affect the employment of salaried staff members. The major changes introduced by these amendments include: a new requirement for employers to keep time and attendance records for salaried employees;  a new entitlement that employees be paid overtime and penalty rates in addition to their annualised salary in some circumstances; and a new requirement that employers conduct a 12 monthly reconciliation of the salary against what the employee would have been paid under the award.  This means that salaried staff who traditionally haven’t recorded their hours of work will now need to keep a record of their start and finish times, including breaks. Employers will now need to use those records to ensure the employee is paid more under the salary than they would have been paid under the award.  Tanda is working on creating a feature release that will help with compliance and eliminate possible additional admin that comes with the change. Subscribe here and we\'ll keep you updated. Tanda has developed the below process as a guide for complying with these new requirements.  Step 1 - Determine which award conditions will be covered by the annualised wage An annualised wage is typically paid in satisfaction of as many pay conditions as the award allows (e.g. minimum weekly wages, allowance, overtime penalty rates, weekend and other penalty rates, and annual leave loading). You should check your award to determine which pay conditions can be satisfied by the annualised wage. At this stage, the new clauses will allow annualised salaries only for full-time employees. Step 2 - Calculate the annualised wage The new award clauses require you to determine “the method by which the annualised wage has been calculated, including specification of each separate component of the annualised wage and any overtime or penalty assumptions used in the calculation”. This type of modelling is easy in Tanda. Just create a test roster for a month (or even a full year). It is better to slightly overestimate the overtime hours and penalty rate hours that might be worked. Don’t forget about allowances, or about penalty rates that might apply at irregular intervals (e.g. for work on public holidays). Some awards also require the annualised salary paid to non-managerial staff to be greater than a certain percentage of the minimum weekly award wage that would have been paid to the employee. If your award includes that requirement, you should also check your employee’s annual salary against that percentage. Step 3 - Set the “outer limits” for penalty and overtime hours The new award clauses will require you to set a limit on how many overtime and penalty rate hours that the annual salary covers in each pay or roster cycle. Any hours worked beyond the outer limit within the same cycle will need to be paid in addition to the annualised wage. The same awards that require the annualised wage be a set percentage greater than the minimum award wage will also have a maximum number of outer limit hours that may be covered by the annualised wage. However, most awards do not specify the maximum number of outer limit hours. We suggest employers regard the following guidance from the Fair Work Commission about how to set the outer limit hours:  The outer limit hours per pay cycle can be greater than the average number of overtime and penalty rate hours that the annualised wage is calculated to cover under Step 2. Example: if the annualised wage assumes the employee will work an average of 5 overtime hours per week over the year, the specified outer limit of overtime hours may be 10 per week. Although not expressly stated in the new clause, the FWC anticipates that the outer limits will allow only “reasonable” fluctuations in the amount of overtime or penalty hours per week. That is, you should be prepared to justify why the outer limit hours that you set are a reasonable “flex up” for the employee for that pay cycle. As above, the outer limits can be set so that the employee is paid less in that pay or roster cycle than they would have been paid under the award. The FWC has provisionally set the following maximum number of outer limit hours that may be worked for the awards mentioned above: where the annualised wage must be at least 25% greater than the minimum award wage, the maximum outer limit of ordinary-time penalty rate hours is an average of 16 per week, and the outer limit of overtime hours under is an average of 10 per week. where the required pay uplift is 40%, the respective maximum outer limits were provisionally set at 20 and 15 per week. Step 4 - Document the terms of the annualised salary You must keep a written record of: the amount of the annualised salary (see Step 2); which award conditions will be covered by the annualised wage (see Step 1); the method by which the annualised wage has been calculated, including specification of each separate component of the annualised wage and any overtime or penalty assumptions used in the calculation (see Step 2); the outer limit overtime and penalty rate hours (see Step 3). This record must be given to the employee. Some awards also require that the employee agree to being paid the annualised wage. Remember that you can store this record against the employee using files on the Tanda Platform™. Step 5 - Employee confirmation of their time and attendance The new award rules require you to keep a record of the employee’s starting and finishing times of work, and any unpaid breaks taken. This record must be signed by the employee, or acknowledged as correct in writing (including by electronic means) by the employee, each pay period or roster cycle. Tanda has a workflow to electronically manage this requirement, whether or not you require the employee to clock in and out using Tanda’s Time Clock. Workplaces who traditionally don’t use an attendance device can manage this by exception.  Step 6 - Checking the outer limits and other amounts not included in the annualised wage Each pay or roster cycle, you will need to check whether the employee has worked in excess of the outer limit overtime or penalty rate hours. You will also need to check whether the employee should be paid any other amount that is not covered by the annualised wage, e.g. if the annual salary does not cover all award pay rules.  You can easily check this in Tanda by comparing the Salaried amount against the equivalent Full-Time Classification. Tanda is also leading the charge in building automation into this process to allow businesses to manage by exception. You will need to pay an employee for the overtime and penalty rate hours that they work in excess of the outer limits. The additional payment will be due in the same pay or roster cycle that the hours were worked. Step 7 - Wage review  The new clause requires you to calculate the amount that the employee would have been paid under the award and compare this to the annualised wage actually paid to the employee. This comparison must be undertaken: each 12 months from the commencement of the annualised wage arrangement; or  upon the termination of employment of the employee.  You can easily do this in Tanda by comparing it to the equivalent full-time classification for the annual period. Ensure that the employee’s award entitlements are properly configured, including classification and allowances. Tanda can also provide an exportable report that details the breakdown of the gross wages by pay condition.  If the employee would have been paid more under the award than under the annualised wage, you must pay the employee the amount of the shortfall within 14 days of the review. Current developments At the time of writing, the Fair Work Ombudsman (FWO) has not issued any guidance about how the new annual salary requirements should be applied. Tanda has assembled a project team who are actively liaising with stakeholders, including employers and industry bodies, to create a staged feature release that is consistent with the requirements of the annualised salary changes taking effect in March 2020. The backbone of this release is a powerful reporting tool that aims to eliminate the additional admin burden brought by the changes. For updates on the project, enter your details below: Project Updates: Register your interest [pardot-form width=\"500\" height=\"180\" id=\"12721\" title=\"Annualised Wage Compliance EOI\"] List of awards affected by this decision Banking, Finance and Insurance Award 2010 Broadcasting, Recorded Entertainment and Cinemas Award 2010 Clerks - Private Sector Award 2010 Contract Call Centres Award 2010 Health Professionals and Support Services Award 2010 Horticulture Award 2010 Hospitality Industry (General) Award 2010 Hydrocarbons Industry (Upstream) Award 2010 Legal Services Award 2010 Local Government Industry Award 2010 Manufacturing and Associated Industries and Occupations Award 2010 Marine Towage Award 2010 Mining Industry Award 2010 Oil Refining and Manufacturing Award 2010 Pastoral Award 2010 Pharmacy Industry Award 2010 Rail Industry Award 2010 Restaurant Industry Award 2010  Salt Industry Award 2010 Telecommunications Services Award 2010 Water Industry Award 2010 Wool Storage, Sampling and Testing Award 2010 If you have questions about how Tanda can assist you with these new requirements, register on the link above. If you’re unsure about the legal effects of these changes to your business, call the Fair Work Infoline on 13 13 94.

Practical implications of the March 2020 Annualised Wage Arrangement changes

13 January 2020

Clients & Partners AU    |   

Jas Sidhu is a firm believer in franchise businesses. When he was looking to purchase one, Schnitz caught his attention. “I look at many franchise businesses, and I always keep coming back to Schnitz because I love the product. It’s all freshly made. It’s cooked to order. The chips are fantastic.” Today, Jas owns Schnitz in Balaclava.  Having a great product is one thing, but another equally important element of running a food business are the employees. “It’s about having the right people and hiring the right calibre of staff, and making sure that they are passionate and love what they do. They should have a passion for serving the customers with the same quality of food that they would want to be served themselves.” The right mix in managing shift changes, rostering, and payroll Schnitz Balaclava’s operations highly depend on people. Jas needed a way to schedule staff effectively and deal with last-minute shift changes when unplanned absences happen.  “That’s where Tanda makes it very easy. My staff can select ‘you can’t work this shift’ on the app, and I can then offer it to selected employees, or I can offer it to all staff as an open shift,” shared Jas.  Schnitz also streamlined scheduling, ensured each station is covered, and wage costs are always in check. “I log in to Tanda, and I can do a roster in about 5-10 minutes. Before, it would take me at least an hour or two to work the cost,” shared Jas. “[It] is convenient. It doesn’t cause me stress to do the rosters, trying to figure out who’s available, and working out wage costs.” Accuracy in pay and labour compliance are also benefits that Schnitz Balaclava gets from Tanda. “It takes me about 5 minutes to pay staff. I export all timesheets to Xero, and it’s done immediately. The calculation of timesheets and wages are all done for me. It safeguards my business because I can never have an issue with the Fair Work,” remarked Jas.  The secret to training staff and improving customer service Because rosters and payroll don’t take a long time to do, Jas now has more time to train his team and work on improving the business.  “We want to build this business and probably look at a second store. But basically, right now, we want to focus on this and make sure that Schnitz Balaclava is a success,” Jas said.  Just like Schnitz Balaclava, you can manage your workforce better. Give Tanda a try for free and see how it can help you take your business further. 

Schnitz Balaclava’s Perfect Ingredient in Rostering

9 January 2020

Awards & Rostering    |   

Creating a roster that maximises student visa hours while remaining below the 20-hour-a-week limit is a big challenge for businesses. With our customers employing anything from 15 to 2,000 student visa workers, this was a major pain point.  The maximum fine for breaching this condition is AU$63,000. For each breach. So giving as many hours as possible to student visa workers without breaching is in both the employee and the employer’s interests. It maximises productivity for businesses and provides suitable wages for staff. Introducing a suite of features that makes this important process — and managing staff qualifications in general — easier. To figure out the best approach to solve this problem, we conducted extensive research with a number of our customers across a range of industries.  Above: Tanda clients rated managing student visa workers as a major pain point In a nutshell, expiry dates and term dates are the hardest parts to keep track. Overall, Tanda users indicated that the overall student visa hours and qualification tracking process is very difficult. How to manage your student visa workers in Tanda This multi-faceted issue requires a multi-faceted solution. When set-up correctly, this combination of features and alerts work together to ensure visa worker hours get close to 20/week, but not over. It’s a foolproof way to avoid the long list of possible sanctions resulting from non-compliance. Key Alert for maximum hours. If an employee is at risk of going over their maximum hours, the manager will receive a Key Alert. Set effective dates. Identify a date range (i.e. term time) in which the hours restriction applies. Give student visa workers more hours during term breaks. Learn more Prevent publishing roster if hours exceeded. The roster cannot be published if at least one staff member would be working over the maximum hours, or a visa has expired. Employee self-service. Staff can update their qualifications and submit term dates, with managers being notified for approval. Staff need to have access to the desktop version of Tanda (my.tanda.co).  Notifications to the right people. Select which permission level receives notifications on qualification updates and upcoming expiry dates. Learn more Permissions for the right people. Change who can edit and approve all qualifications. Audit trail of qualifications. See a detailed audit trail of creation, updating, and approval of qualifications. Read the help article to learn how to set it up. How it helps with general qualifications While these features were created with managing student visas in mind, these can also make managing other qualifications easier. For example, it can work for fatigue management for drivers. Find out more.

Announcing Student Visa Management: How to avoid a $63,000 fine and maximise visa workers’ hours

13 January 2020

Awards & Rostering    |   

The Fair Work Commission has announced amendments to 22 modern awards that affect the employment of salaried staff members. The major changes introduced by these amendments include: a new requirement for employers to keep time and attendance records for salaried employees;  a new entitlement that employees be paid overtime and penalty rates in addition to their annualised salary in some circumstances; and a new requirement that employers conduct a 12 monthly reconciliation of the salary against what the employee would have been paid under the award.  This means that salaried staff who traditionally haven’t recorded their hours of work will now need to keep a record of their start and finish times, including breaks. Employers will now need to use those records to ensure the employee is paid more under the salary than they would have been paid under the award.  Tanda is working on creating a feature release that will help with compliance and eliminate possible additional admin that comes with the change. Subscribe here and we\'ll keep you updated. Tanda has developed the below process as a guide for complying with these new requirements.  Step 1 - Determine which award conditions will be covered by the annualised wage An annualised wage is typically paid in satisfaction of as many pay conditions as the award allows (e.g. minimum weekly wages, allowance, overtime penalty rates, weekend and other penalty rates, and annual leave loading). You should check your award to determine which pay conditions can be satisfied by the annualised wage. At this stage, the new clauses will allow annualised salaries only for full-time employees. Step 2 - Calculate the annualised wage The new award clauses require you to determine “the method by which the annualised wage has been calculated, including specification of each separate component of the annualised wage and any overtime or penalty assumptions used in the calculation”. This type of modelling is easy in Tanda. Just create a test roster for a month (or even a full year). It is better to slightly overestimate the overtime hours and penalty rate hours that might be worked. Don’t forget about allowances, or about penalty rates that might apply at irregular intervals (e.g. for work on public holidays). Some awards also require the annualised salary paid to non-managerial staff to be greater than a certain percentage of the minimum weekly award wage that would have been paid to the employee. If your award includes that requirement, you should also check your employee’s annual salary against that percentage. Step 3 - Set the “outer limits” for penalty and overtime hours The new award clauses will require you to set a limit on how many overtime and penalty rate hours that the annual salary covers in each pay or roster cycle. Any hours worked beyond the outer limit within the same cycle will need to be paid in addition to the annualised wage. The same awards that require the annualised wage be a set percentage greater than the minimum award wage will also have a maximum number of outer limit hours that may be covered by the annualised wage. However, most awards do not specify the maximum number of outer limit hours. We suggest employers regard the following guidance from the Fair Work Commission about how to set the outer limit hours:  The outer limit hours per pay cycle can be greater than the average number of overtime and penalty rate hours that the annualised wage is calculated to cover under Step 2. Example: if the annualised wage assumes the employee will work an average of 5 overtime hours per week over the year, the specified outer limit of overtime hours may be 10 per week. Although not expressly stated in the new clause, the FWC anticipates that the outer limits will allow only “reasonable” fluctuations in the amount of overtime or penalty hours per week. That is, you should be prepared to justify why the outer limit hours that you set are a reasonable “flex up” for the employee for that pay cycle. As above, the outer limits can be set so that the employee is paid less in that pay or roster cycle than they would have been paid under the award. The FWC has provisionally set the following maximum number of outer limit hours that may be worked for the awards mentioned above: where the annualised wage must be at least 25% greater than the minimum award wage, the maximum outer limit of ordinary-time penalty rate hours is an average of 16 per week, and the outer limit of overtime hours under is an average of 10 per week. where the required pay uplift is 40%, the respective maximum outer limits were provisionally set at 20 and 15 per week. Step 4 - Document the terms of the annualised salary You must keep a written record of: the amount of the annualised salary (see Step 2); which award conditions will be covered by the annualised wage (see Step 1); the method by which the annualised wage has been calculated, including specification of each separate component of the annualised wage and any overtime or penalty assumptions used in the calculation (see Step 2); the outer limit overtime and penalty rate hours (see Step 3). This record must be given to the employee. Some awards also require that the employee agree to being paid the annualised wage. Remember that you can store this record against the employee using files on the Tanda Platform™. Step 5 - Employee confirmation of their time and attendance The new award rules require you to keep a record of the employee’s starting and finishing times of work, and any unpaid breaks taken. This record must be signed by the employee, or acknowledged as correct in writing (including by electronic means) by the employee, each pay period or roster cycle. Tanda has a workflow to electronically manage this requirement, whether or not you require the employee to clock in and out using Tanda’s Time Clock. Workplaces who traditionally don’t use an attendance device can manage this by exception.  Step 6 - Checking the outer limits and other amounts not included in the annualised wage Each pay or roster cycle, you will need to check whether the employee has worked in excess of the outer limit overtime or penalty rate hours. You will also need to check whether the employee should be paid any other amount that is not covered by the annualised wage, e.g. if the annual salary does not cover all award pay rules.  You can easily check this in Tanda by comparing the Salaried amount against the equivalent Full-Time Classification. Tanda is also leading the charge in building automation into this process to allow businesses to manage by exception. You will need to pay an employee for the overtime and penalty rate hours that they work in excess of the outer limits. The additional payment will be due in the same pay or roster cycle that the hours were worked. Step 7 - Wage review  The new clause requires you to calculate the amount that the employee would have been paid under the award and compare this to the annualised wage actually paid to the employee. This comparison must be undertaken: each 12 months from the commencement of the annualised wage arrangement; or  upon the termination of employment of the employee.  You can easily do this in Tanda by comparing it to the equivalent full-time classification for the annual period. Ensure that the employee’s award entitlements are properly configured, including classification and allowances. Tanda can also provide an exportable report that details the breakdown of the gross wages by pay condition.  If the employee would have been paid more under the award than under the annualised wage, you must pay the employee the amount of the shortfall within 14 days of the review. Current developments At the time of writing, the Fair Work Ombudsman (FWO) has not issued any guidance about how the new annual salary requirements should be applied. Tanda has assembled a project team who are actively liaising with stakeholders, including employers and industry bodies, to create a staged feature release that is consistent with the requirements of the annualised salary changes taking effect in March 2020. The backbone of this release is a powerful reporting tool that aims to eliminate the additional admin burden brought by the changes. For updates on the project, enter your details below: Project Updates: Register your interest [pardot-form width=\"500\" height=\"180\" id=\"12721\" title=\"Annualised Wage Compliance EOI\"] List of awards affected by this decision Banking, Finance and Insurance Award 2010 Broadcasting, Recorded Entertainment and Cinemas Award 2010 Clerks - Private Sector Award 2010 Contract Call Centres Award 2010 Health Professionals and Support Services Award 2010 Horticulture Award 2010 Hospitality Industry (General) Award 2010 Hydrocarbons Industry (Upstream) Award 2010 Legal Services Award 2010 Local Government Industry Award 2010 Manufacturing and Associated Industries and Occupations Award 2010 Marine Towage Award 2010 Mining Industry Award 2010 Oil Refining and Manufacturing Award 2010 Pastoral Award 2010 Pharmacy Industry Award 2010 Rail Industry Award 2010 Restaurant Industry Award 2010  Salt Industry Award 2010 Telecommunications Services Award 2010 Water Industry Award 2010 Wool Storage, Sampling and Testing Award 2010 If you have questions about how Tanda can assist you with these new requirements, register on the link above. If you’re unsure about the legal effects of these changes to your business, call the Fair Work Infoline on 13 13 94.

Practical implications of the March 2020 Annualised Wage Arrangement changes

13 January 2020

Clients & Partners AU    |   

Jas Sidhu is a firm believer in franchise businesses. When he was looking to purchase one, Schnitz caught his attention. “I look at many franchise businesses, and I always keep coming back to Schnitz because I love the product. It’s all freshly made. It’s cooked to order. The chips are fantastic.” Today, Jas owns Schnitz in Balaclava.  Having a great product is one thing, but another equally important element of running a food business are the employees. “It’s about having the right people and hiring the right calibre of staff, and making sure that they are passionate and love what they do. They should have a passion for serving the customers with the same quality of food that they would want to be served themselves.” The right mix in managing shift changes, rostering, and payroll Schnitz Balaclava’s operations highly depend on people. Jas needed a way to schedule staff effectively and deal with last-minute shift changes when unplanned absences happen.  “That’s where Tanda makes it very easy. My staff can select ‘you can’t work this shift’ on the app, and I can then offer it to selected employees, or I can offer it to all staff as an open shift,” shared Jas.  Schnitz also streamlined scheduling, ensured each station is covered, and wage costs are always in check. “I log in to Tanda, and I can do a roster in about 5-10 minutes. Before, it would take me at least an hour or two to work the cost,” shared Jas. “[It] is convenient. It doesn’t cause me stress to do the rosters, trying to figure out who’s available, and working out wage costs.” Accuracy in pay and labour compliance are also benefits that Schnitz Balaclava gets from Tanda. “It takes me about 5 minutes to pay staff. I export all timesheets to Xero, and it’s done immediately. The calculation of timesheets and wages are all done for me. It safeguards my business because I can never have an issue with the Fair Work,” remarked Jas.  The secret to training staff and improving customer service Because rosters and payroll don’t take a long time to do, Jas now has more time to train his team and work on improving the business.  “We want to build this business and probably look at a second store. But basically, right now, we want to focus on this and make sure that Schnitz Balaclava is a success,” Jas said.  Just like Schnitz Balaclava, you can manage your workforce better. Give Tanda a try for free and see how it can help you take your business further. 

Schnitz Balaclava’s Perfect Ingredient in Rostering

9 January 2020

Most Popular

Awards & Rostering

What you need to know about the Casual Conversion Clause

On 1 October 2018, the Fair Work Commission announced that a new casual conversion clause will be included in 80+ modern awards across Australia. What does it mean? Casual conversion is a right given to regular casual staff to request for full-time or part-time employment status, given certain prerequisites. In the awards, a ‘regular casual employee’ is: “A casual employee who has, in the preceding period of 12 months, worked a pattern of hours on an ongoing basis which, without significant adjustment, the employee could continue to perform as a full-time employee or part-time employee under the provisions of this award.” Businesses whose awards fall under mandate are required to advise their casual employees of this clause. This does not require employers to offer conversion to their eligible employees; rather, the clause entitles all eligible employees the right to request for conversion. Who can apply? The clause allows casual workers to apply for conversion if: They have  been working for the business for twelve (12) months; and Their work pattern is an ongoing number of hours over the past year, which can be continued without adjustment upon conversion to full-time or part-time. Employers must provide casual employees with a copy of the casual conversion clause within their first year of initial engagement with the business. Casual employees who are eligible to apply should request their employers in writing. Can applications be rejected? Yes, applications can be rejected. Reasonable grounds include: A significant adjustment of work hours for the employee in order to accommodate their full-time or part-time employment status; The employee worked for short periods and/or irregular shifts or hours; and The position of the casual employee will cease to exist in the foreseeable future. Rejection of applications can be done, given that both employee and employer have discussed the decision. Should employers not convert a casual employee, a written refusal must be provided, indicating the reasonable grounds of rejection. Read more: What is the Contingent Workforce and how can you leverage it in your business? What awards are covered? The introduction of the clause covers 80+ modern awards, including: Hospitality Industry (General) Award 2010; Food, Beverage and Tobacco Manufacturing Award 2010; Manufacturing and Associated Industries and Occupations Award 2010; Building & Construction General On-site Award 2010; Concrete Products Award 2010; Electrical, Electronic & Communications Contracting Award 2010; Graphic Arts, Printing and Publishing Award 2010; Plumbing and Fire Sprinklers Award 2010; Textile, Clothing, Footwear and Associated Industries Award 2010; and Vehicle Manufacturing, Repair, Services and Retail Award 2010 To check if your business is included, click here. What should your business do next? It’s important to keep in mind that Fair Work’s decision does not require businesses to convert casual employees in all cases where a casual employee makes a request for conversion to their employer.  For this reason, it’s important to understand the criteria for casual conversion and understand what your obligations are when employees meet these requirements. If you or your business falls under the new clause, here are the steps you can take to stay compliant: Check your modern award or enterprise agreement. Awards with existing clauses for casual conversion may have different requirements. Check your award for the exact rules in your industry. Create a casual conversion letter. You can also download a copy here. Notify your employees. Make sure you give your casual staff (employed as of 1 October 2018) a copy of the final letter. Record the outcome of the casual conversion offer. Whether they accept or reject the offer, keep copies of their written responses for future reference. If you are unsure how the casual conversion clause affects your business, call the Fair Work Infoline on 13 13 94 or visit www.fairwork.gov.au To make sure you stay updated with the latest news on awards, employment, and compliance, subscribe to our newsletter today.

Product Updates

Domino’s and Tanda: Building the Workforces of the Future

Brisbane-based company Tanda has today announced a business partnership with Domino’s Pizza Enterprises Limited, to automate and optimise the company’s payroll process. The partnership will assist Domino’s in empowering its franchisees with the right technology and tools to efficiently manage rostering and payroll as a competitive edge. Tanda Director Tasmin Trezise said he is excited about the partnership. “Tanda is proud to be working collaboratively with Domino’s to build the future of workforce management, and this represents an exciting step towards using technology to shape enterprise workplaces,” said Mr Trezise. “Domino’s is an agile and forward-thinking company who are leading the way in terms of innovation, whether this is through their drone delivery services or re-imagining their labour supply chain management.” The partnership between the two companies will see a roll out of Tanda\'s software to over 700 stores across Australia and New Zealand. Domino’s Australia and New Zealand CEO Nick Knight said the Company was looking forward to making franchisee’s lives easier with the efficient time and attendance program. “We are always looking to use the latest innovative technology in everything that we do as a Company – this from delivery to customers and for systems and processes with franchisees,” said Mr Knight. “Rolling out Tanda in stores across Australia and New Zealand will allow our franchisees to efficiently roster and record team member’s attendance so we look forward to reaping the benefits of the innovative program.” Trezise explained that Domino’s franchisees would soon see incredible benefits after the working relationship with Tanda begins. “This partnership will empower Domino’s franchisees with a greater understanding and insight into their labour costs so they are able to make smarter and more informed business decisions whilst having comfort that their payroll complies with current awards and enterprise agreements. “The fact that Domino’s and other Australian businesses are using new technology like Tanda is a testament to Australia’s growing success as an innovative nation.” Domino’s partnership with Tanda began in the Company’s dedicated innovation space, the DLAB, which was designed to encourage out of the box thinking. From local corner cafes to global workforces, Tanda is revolutionising the world of rostering and payroll one shift at a time. About Tanda Tanda is a scalable workforce management SaaS, that is helping businesses to unlock efficiency and productivity gains through more effective labour force management. For more information, visit www.tanda.co About Domino’s Domino’s Pizza Enterprises Limited is the master franchisor for the Domino’s brand in Australia, New Zealand, Belgium, France, The Netherlands, Japan and Germany. Across these seven markets, DPE and its franchisees operate over 2,000 stores. For more information, please visit www.dominos.com.au For further information, media enquiries or images contact: Bridget Mahon Marketing Communications Officer Email: bridget@tanda.co

Editor's Picks

Industry Insights    |   

How this retailer increased profit by $8.9m from rostering more hours

There has been a lot of speculation on why we are losing retailers so fast. An interesting research piece from the US presented an alternative hypothesis that generalises the issue down to rostering for profit rather than rostering to control costs. For context – If you were given the choice of increasing revenue by 5% or reducing costs by 5% in order to create the most profitable outcome, what would choose? A “back of the hand” calculation would show that reducing costs increases profit more than the equivalent uptick in revenue. Accordingly, most retailers choose option two. This makes sense if you assume the two scenarios are independent of each other, but what if the cost was your employees? This is where the problems arise. For industries like retail, where staff have a direct impact on sales, it’s not as simple of a question as cutting costs to increase profit. In a study led by Professor Marshall Fisher from Wharton, he and his research team constructed a conceptual model from historical data to identify stores within a US-based retail chain that had the highest potential to benefit from increased labour spend. Importantly, the strategy was actually implemented at 168 retail sites over a 26-week period to validate the model, with the retailer electing to implement the strategy further. The result: A near $8.9 million increase in profit of the stores included. The labour cost challenge The challenge in allocating labour budgets lies in the tradeoff between the known immediate payroll cost and the less certain increase in sales that could be achieved with more staff on hand. The researchers point out that retail managers have a tendency to overweigh the decision to reduce the known payroll cost than the less certain increase in sales which could be achieved by allocating additional labour spend. The labour budget death spiral The study highlights the limitation of the most common retail strategy — setting labour budgets as a portion of sales. Fisher points out that this approach creates a circular problem by failing to take into account how store labour spend can positively impact sales, with the worst case leading to a spiraling effect of reduced sales forecasts reducing labour spend which reduces sales further and so on. Quantifying the impact of labour spend on revenue Creating labour budgets that are designed to maximise profit requires retailers to know on a store-by-store basis the correlation between labour-spend and sales. One way to do this is by looking at times when staffing levels deviate from the original schedule. If ten staff were scheduled on a particular day, but on that day only eight turned up, did sales also decrease by the same portion? If not, by how much? If the answer to the above is that sales didn’t decrease at all, the store is likely overstaffed. If there is a measurable impact, the inverse scenario is likely true and the store may be losing sales by being understaffed. This is the same approach used in the study, which found the relationship between random staffing deviations and impacts on sales was statistically significant. Results showed an increase in labour spend pointed to increased sales at varying degrees, depending on known store attributes. Implementing the strategy for profit The study identified stores in a US retail chain which had the highest market potential, making them good candidates for an increased labour spend. The market potential factored in attributes like average basket value and proximity to competitors, which would create scenarios that allow workers to have the highest impact on converting sales. In the study, 168 stores were selected this way, then allocated a 10% increased labour budget over a 26-week period, of which 75% of the increase was actually consumed in practice by the stores. The outcome was a 4.5% increase in revenue at the impacted stores and resulting in a near $8.9 million profit increase. Learning from the strategy The study shows empirically why the common practice of setting labour budgets as a fixed proportion of forecasted revenue is often self-defeating when applied in a retail setting. An opportunity exists to all retailers to leverage this same profit-centric model for defining labour budgets. The data required is available to all retailers however, it may just be a matter of leveraging that information with the right systems. An integrated forecasting strategy that integrates foot traffic, sales, and employee scheduling data is a practical opportunity afforded to retailers of any size to optimise their labour resource allocations. The interesting part is, Fisher’s research is readily available to all retailers who are looking to drift away from the traditional method of fixing labour budget rosters. The next step is to get this method of labour resource allocation battle-tested in the Australian markets. Stay tuned. Up next: What is the Contingent Workforce and how can you leverage it in your business?

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Industry Insights    |   

How this retailer increased profit by $8.9m from rostering more hours

There has been a lot of speculation on why we are losing retailers so fast. An interesting research piece from the US presented an alternative hypothesis that generalises the issue down to rostering for profit rather than rostering to control costs. For context – If you were given the choice of increasing revenue by 5% or reducing costs by 5% in order to create the most profitable outcome, what would choose? A “back of the hand” calculation would show that reducing costs increases profit more than the equivalent uptick in revenue. Accordingly, most retailers choose option two. This makes sense if you assume the two scenarios are independent of each other, but what if the cost was your employees? This is where the problems arise. For industries like retail, where staff have a direct impact on sales, it’s not as simple of a question as cutting costs to increase profit. In a study led by Professor Marshall Fisher from Wharton, he and his research team constructed a conceptual model from historical data to identify stores within a US-based retail chain that had the highest potential to benefit from increased labour spend. Importantly, the strategy was actually implemented at 168 retail sites over a 26-week period to validate the model, with the retailer electing to implement the strategy further. The result: A near $8.9 million increase in profit of the stores included. The labour cost challenge The challenge in allocating labour budgets lies in the tradeoff between the known immediate payroll cost and the less certain increase in sales that could be achieved with more staff on hand. The researchers point out that retail managers have a tendency to overweigh the decision to reduce the known payroll cost than the less certain increase in sales which could be achieved by allocating additional labour spend. The labour budget death spiral The study highlights the limitation of the most common retail strategy — setting labour budgets as a portion of sales. Fisher points out that this approach creates a circular problem by failing to take into account how store labour spend can positively impact sales, with the worst case leading to a spiraling effect of reduced sales forecasts reducing labour spend which reduces sales further and so on. Quantifying the impact of labour spend on revenue Creating labour budgets that are designed to maximise profit requires retailers to know on a store-by-store basis the correlation between labour-spend and sales. One way to do this is by looking at times when staffing levels deviate from the original schedule. If ten staff were scheduled on a particular day, but on that day only eight turned up, did sales also decrease by the same portion? If not, by how much? If the answer to the above is that sales didn’t decrease at all, the store is likely overstaffed. If there is a measurable impact, the inverse scenario is likely true and the store may be losing sales by being understaffed. This is the same approach used in the study, which found the relationship between random staffing deviations and impacts on sales was statistically significant. Results showed an increase in labour spend pointed to increased sales at varying degrees, depending on known store attributes. Implementing the strategy for profit The study identified stores in a US retail chain which had the highest market potential, making them good candidates for an increased labour spend. The market potential factored in attributes like average basket value and proximity to competitors, which would create scenarios that allow workers to have the highest impact on converting sales. In the study, 168 stores were selected this way, then allocated a 10% increased labour budget over a 26-week period, of which 75% of the increase was actually consumed in practice by the stores. The outcome was a 4.5% increase in revenue at the impacted stores and resulting in a near $8.9 million profit increase. Learning from the strategy The study shows empirically why the common practice of setting labour budgets as a fixed proportion of forecasted revenue is often self-defeating when applied in a retail setting. An opportunity exists to all retailers to leverage this same profit-centric model for defining labour budgets. The data required is available to all retailers however, it may just be a matter of leveraging that information with the right systems. An integrated forecasting strategy that integrates foot traffic, sales, and employee scheduling data is a practical opportunity afforded to retailers of any size to optimise their labour resource allocations. The interesting part is, Fisher’s research is readily available to all retailers who are looking to drift away from the traditional method of fixing labour budget rosters. The next step is to get this method of labour resource allocation battle-tested in the Australian markets. Stay tuned. Up next: What is the Contingent Workforce and how can you leverage it in your business?

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