IT Systems May Fail New WorkChoices Legislation
Latest news from Software Choice
18-Sep-2006
Sydney, 30 April 2006 – Businesses may need to review their existing software’s ability to handle new demands resulting from the Federal WorkChoices legislation according to Software Choice, an independent management advisory service that helps organisations identify and select software solutions according to their needs and budget. Specifically, the legislation which came into effect last month and is applicable to all private sector employees in Victoria, the ACT and NT, and all “constitutional corporations”, has rules for annual leave, award interpretation and timekeeping which may impact on installed software and its ability to handle mountains of new individual calculations. Software Choice advises that the way by which annual leave is calculated and credited to employees is different to current practice for many employers, and IT systems may need to be evaluated to ensure that they calculate leave in accordance with the new guidelines. In particular, the definition of “shift worker” for annual leave purposes may be difficult to apply for some employers, particularly where employees regularly change their working patterns throughout the year. According to Software Choice, if IT systems cannot identify workers with these patterns, organisations may have to implement a manual process to ensure that they receive the correct entitlement. In addition, the legislation says that employees may, under certain circumstances, “cash in” up to two weeks’ leave per annum. Meredith Thompson, Managing Director, Software Choice, says, “Companies will need to ensure that their system has a mechanism for identifying who is eligible, and for updating leave and payroll records when leave is cashed in. “In addition, personal leave is cumulative. However, no more than 10 days of carers’ leave can be taken in a single year. Companies will also need to be able to differentiate between sick and carers’ leave taken within the personal leave entitlement to ensure that this limit is not exceeded.” Software Choice also advises that with the WorkChoices legislation, an organisation’s award interpretation engine may have to be upgraded to handle transitional arrangements in addition to the new WorkChoices agreements. The most common agreements will most likely be Australian Workplace Agreements (AWAs) which apply to an individual employee, and Employee Collective Agreements, which apply to groups of employees and a single employer. With the emphasis being on AWAs, IT departments may need to ensure that their system can potentially handle the worst case scenario of a different agreement for each employee. Finally, one of the more controversial issues with WorkChoices is the requirement to maintain records to ensure that employees are only working 38 hours per week, plus “reasonable overtime”. This means that for all employees who earn less than $55,000 per annum, or who receive payments for working overtime, the individual must record their working hours every day. In many industries, there is currently no mechanism for recording hours of salaried employees. Departments may need to implement either a manual or electronic system to handle this requirement. In response, Software Choice advises organisations to safeguard their businesses by understanding the level of potential opportunity for mis-calculations, conducting regular audits of the software calculations, implementing mechanisms to monitor and audit the legislation enforcements, and configuring and deploying software to ensure it mitigates any potential risks. ENDS About Software Choice Software Choice’s independent management advisory services help organisations to choose the right software to suit their requirements and budget. The company’s services include consulting and support in the provision of options reports, training workshops, business requirements definition, request for information processes, shortlist selection, detailed product evaluation, contract negotiation, and sourcing and implementation support. Further Information www.softwarechoice.com.au For further information, please contact: David Bass
LEWIS PR
02 9901 4235
davidb@lewispr.com