INDUSTRIAL UPDATE – Payslips Need to Clearly Identify Allowances Separately

Following on from the audit program conducted by the Fair Work Ombudsman (FWO) into the Horse Racing Industry in 2013, subsequent individual States follow up campaigns have highlighted the need to ensure that pay slips issued to employees comply with the Fair Work Act 2009 (the Act), the Fair Work Regulations 2009 (the Regulations) and the Horse and Greyhound Training Award 2010 (the Award).

Section 535 of the Act requires that time and wages must be kept for seven years and they must have prescribed information. Regulation 3.33 (3) require that records must contain details of allowances paid and separately identifiable entitlements.

Racecourse Attendance Allowance must be identified in accordance with the Award provisions to comply with the Regulation 3.33 (3) and they must be separately identifiable.

Racecourse attendance allowance, Meal allowance and hours worked on course
The consolidation of several entitlements payable to an employee for a racecourse attendance under one allowance paid is a practice that is contrary to requirements under the Regulations.

Racecourse attendance fees paid to employees often include a racecourse attendance allowance, a meal allowance and also the hours of work on course. Recording a consolidated total of related entitlements under a Racecourse attendance allowance does not comply with the Regulation 3.33 (3) mentioned above.

Allowances under the Horse & Greyhound Training Award 2010 are provided under clause 14.  The following represents sub-clauses for racecourse attendance allowances referred to above.

14.1      Racecourse attendance allowance
Every employee who is required to attend a race meeting must be paid a racecourse attendance allowance calculated as follows:

(a)  Where the racecourse is situated within 75 kilometres of the employee’s place of employment $23.70;

(b)  Where the racecourse is more than 75 kilometres from the employee’s place of employment, the allowance in clause 14.1(a) plus $5.58 for each additional 50 kilometres or part thereof that the racecourse is situated from the place of employment.

14.3      Meal allowances
(a)  When required to attend a race meeting an employee must be paid an allowance of $10.77 for each meal unless the employer supplies the meal.

Separately identify RACECOURSE ATTENDANCE allowances
Each racecourse attendance allowance entitlement should be separately identifiable on the employees pay slips to comply with the Regulations as explained in the following example:

In this example a consolidation of entitlements relating to a racecourse attendance arrives at a fee of $100 that is payable to an employee for attending a race meeting within 125 kilometers of the employee’s place of employment. The consolidated amount of $100 should be itemised on the employee’s payslip as follows:

Racecourse attendance allowance - $29.28
Meal allowance (where a meal is not supplied by employee) - $10.77
Racecourse hours - $59.95 (remember that hours worked on course should be added to hours worked in stables to determine whether the hours on course are ordinary time or overtime hours.)

For information required to be on pay slips click here.
(Source of information: Fair Work Ombudsman)

The ATA’s Industrial Relations Manager is contactable on (03) 9372 1688 should Members require further assistance.