Are you aware of the changes to 'pay in lieu of notice' and the changes to an employer's ability to deduct monies from an employee's pay?

Pay in Lieu of Notice

With the introduction of the National Employment Standards, payments in lieu of notice must include all of the remuneration an employee would have received had they actually worked the notice period. This would include overtime, allowances and penalty rates, and also payment in lieu of entitlements such as access to private use of a company car or superannuation. In the past some of these entitlements weren't incorporated into payment in lieu of notice clauses, so it’s an area to be aware of.

Deducting Monies from Final Pay 

Employers need to beware that if they grant employees leave in advance there's a risk they won't be able to deduct it from the employee's final pay. It is now a requirement of the Fair Work Act that a deduction is not permitted to be made from an employee's wages unless the employee provides written consent for the exact amount before it can be deducted. In the past it has been common practice for an employer to deduct money owing for leave taken in advance from an employee's final pay. This right has traditionally been built-in to employment contracts but the Fair Work Act now overrides this. It is important for businesses to ensure that if they do have a clause in the employment contract allowing the employer to make a deduction from the wages, that it's compliant with the legislation.