IN early August WestVic Dairy welcomed Industrial Relations Lawyer Jennie Corkhill to the region, for her long awaited HR update sessions.

Over two sessions Jennie, supported by Consultant Chris Hibburt, Migration Agent Fadi Malek and Accountant Mark Robson, covered a range of workforce topics. 

The first event, held in Warrnambool, was tailored more for dairy industry service providers, although farmers were most welcome. Jennie went over a range of relevant changes to be aware of, including changes to casual employment, paying salaries and record keeping.

After Jennie had presented, Chris Hibburt ran a session going through the succession resources that Dairy Australia has developed. Chris also discussed a range of options for attracting and retaining young people in our industry.

The second day, held in Camperdown, kicked off with Jennie again covering relevant changes, as well as discussing the importance of having sexual harassment policies in place and getting on farm accommodation right. She also covered the pitfalls of engaging people as independent contractors when they should be employees.

A major focus of Jennie’s presentation was always having paperwork in place; she had many examples of when things go wrong, and the common theme with each one is a lack of paperwork.

Fadi Malek then took attendees through the options and process for employing overseas workers. With over 20 years’ experience in the migration industry, Fadi was a wealth of knowledge which farmers took advantage of, asking many questions.

One of the key changes he discussed was a reduction in the necessary skill level of applicants when using the Dairy Industry Labour Agreement, which has made the process much easier. He also drew attention to the one off pathway to permanent residency the Government has offered to some classes of temporary VISA holders who were in the country for at least 12 months over COVID, being February 2020 to December 2021.

Mark Robson, Accountant and HR Director at Sinclair Wilson Accountants, rounded off the day with an update of changes in the payroll and accounting space, including Super and reporting changes, and a discussion around the ‘Backpacker Tax’.

Some of the key Workplace changes and pitfalls Jennie, Fadi and Mark discussed are noted below.

Casual Employment

Who is, or should be, a casual employee has long been a point of contention. For years the concern for employers employing casuals has been that if a casual employee is working a consistent roster there is the potential for that employee to collect the 25% casual loading, and later make a case for back payment of annual leave. In effect, double dipping.

The Fair Work Act has now been amended to define a casual employee based solely on what the offer of employment included, rather than the nature of that employment as was previously relevant.  

Therefore the risk of having ‘long term casuals’ has been reduced; as long as the paperwork is in place! It is now more important than ever to have written contracts even for your casual staff, as this clearly sets out the employment is intended to be on a casual basis. The payslip should also note the payment as including the 25% casual loading.

Superannuation changes

The superannuation guarantee rate has increased to 10.5%, which is payable on ordinary time worked, as well as leave loading. However, it is not payable on overtime, provided that overtime is easily distinguished.

If the Individual Flexibility Agreement template from the People in Dairy website is used, this ensures the overtime is distinguished and you then only need to pay super on the first 38 hours per week. 

New super stapling legislation has also come into play. Essentially, if an employee does not nominate a fund for their super to be paid in to, an employer must use a new website to search for an active fund for the employee before they use their default fund.

Working holiday makers

The legality of the ‘backpacker tax’ rate of 15% has long been in contention. After making it to the high court, the latest finding is that the tax rate is discriminatory.

However, the best advice for farmers is to still deduct the 15% as legally required, however come tax time the backpacker in submitting their tax return will receive a refund based on either the flat 15% or the usual tax rates for citizens, depending on which worked out in their favour. 

Changes to the Dairy Industry Labour Agreement

After much negotiation on the part of Dairy Australia and ADF, some very favourable changes to the Dairy Industry Labour Agreement have been made. Basically, we can now access employees with lower skill levels than before, with the equivalent of FLH3 employees eligible. Previously applicants needed the equivalent of 5 years of experience, that can now be as low as 1 year. This really opens the scope of options available for employees on Working Holiday VISA’s to transfer across and have the option of permanent residency.