The Federal Court judgment regarding historical entitlements of salaried staff under the General Retail Industry Award (GRIA) will be far-reaching and add further red tape, retailers and business groups warn.
The decision will result in higher costs, an increased compliance burden and reduced productivity, the Australian Retailers Association (ARA), National Retail Association (NRA), Australian Chamber of Commerce and Industry (ACCI), Business Council of Australia (BCA), and Australian Industry Group (Ai Group) said in a joint statement.
“The decision makes it clear how difficult it is for employers to provide employees with flexibility, whilst meeting the burdens of time and wage recording and award conditions.
“It also highlights the onerous nature of requirements to keep detailed records of hours worked and award entitlements, even in circumstances where an employee may be paid an annual salary that significantly exceeds the value of entitlements,” the statement reads.
As per the judgment, salaries, including at senior levels, cannot be used to offset award entitlements on an annual basis, as has been a longstanding practice across most industries.
Where an employer pays a senior employee on a salary basis which exceeds their monthly entitlement under the relevant award, the employer is required to keep a separate record of each penalty, allowance or overtime amount due.
Additionally, the relevant span of ordinary hours needs to be assessed on a day-by-day and store-by-store basis for every retailer nationwide.
The peak bodies are calling for sensible steps to simplify the workplace relations system, including addressing the complex system of awards and unrealistic record-keeping requirements.
ARA CEO Chris Rodwell said the case will deeply impact the retail industry and plainly demonstrates the challenges businesses face in complying with the GRIA.
“This once again highlights how compelling the case for award simplification is. Both employees and employers should be better able to understand the award to avoid compliance issues.
“With 994 different pay rates across almost 100 pages, the GRIA is incredibly difficult for employers to understand… If it requires teams of lawyers and HR experts to interpret the GRIA, it’s clear the system is broken, and it is setting up businesses to fail,” he continued.
The matter is not just about retailers, Rodwell said, adding that employees also need clarity and have the right to understand their pay and conditions clearly and simply.
