Tag: employees

Fewer employers now qualify for Small Business Fair Dismissal Code

With all the focus on the new Paid Parental Leave scheme that came into effect at the start of the year, many smaller businesses may have failed to note the important change to the definition of “small business” that occurred at the same time.

If you own or manage a “small business”, the new rules could very well affect you.

As of 1 January 2011, only businesses that employ fewer than 15 employees – by simple headcount – qualify as a small business when an employee makes an unfair dismissal claim.

Before the change, a small business was one that employed fewer than 15 full-time equivalent employees.

This is a very important distinction, especially if you employ a number of part-time staff, encourage job sharing and provide flexible working arrangements. Your employees may do the work of fewer than 15 full-time equivalent staff, but in themselves add up to more than 15 people.If this situation applies to your business, you will find that you’re no longer eligible for the special unfair dismissal arrangements that apply to small businesses.

These special arrangements include a minimum employment period of 12 months before employees can make an unfair dismissal claim, and a simple Fair Dismissal Code to help employers ensure dismissals are not unfair.

Paid Parental Leave Scheme starts

The Paid Parental Leave Scheme started on 1 January 2011 and provides 18 weeks of government-funded pay to eligible employees. The rate of pay is equivalent to the national minimum wage. Full-time, part-time, casual, seasonal, contract and self-employed workers may be eligible.

Parents can lodge a claim up to three months in advance. The Family Assistance Office may contact you if one of your employees is eligible.

From 1 July 2011, employers will be required to provide parental leave pay to their eligible employees (funds will be provided to the employer in advance). However, this part of the scheme can start earlier if both the employer and employee agree.

Businesses can register now at www.centrelink.gov.au .

Tax-free lump sum super for those terminally ill

The Assistant Treasurer has announced that the Government will amend the law exempt people with a terminal illness who access their superannuation under the age of 60 from the tax on their lump sum benefit. Amendments to the legislation will have effect for payments received after 11 September 2007.

The Government has decided to change this area of tax legislation because we believe we need to remove as many of the stresses as possible for people in this terrible situation.

I have been able to look closely at the case of a young woman named Christina Fiddimore in particular, and the awful circumstances she and her family are experiencing.

In this particular case, the Government will provide the support Christina and her family needs, Mr Dutton said.

Until the legislation passes into law, Mr Dutton said the Government has asked the Commissioner of Taxation to consider changing the rate at which superannuation funds are required to withhold from payments to people in these situations.

Further details will be determined in consultation with the superannuation industry, the medical profession and support groups.