Employment and Work Futures (Topic 3) PDF

Topic 3 - Employment and Work Futures The Workplace Students: compare the types of work and work arrangements, including full-time, part-time, casual, at-home, paid, unpaid, voluntary, apprenticeships, and traineeships (textbook chapters 3.4.1, 3.4.2, 3.4.3 and 3.4.4) Chapter 3.4 - Types of Work Arrangements: Type of working Features of this type of Advantages (write two-three Disadvantages (write arrangement working arrangement dot points) two-three dot points) Full time Continuing, ongoing Get additional pay Spend more hours employment for working more (longer hours) at Number of hours per week than their allocated work is 38 or more hours. Not having extra A range of entitlements received Higher-income and time for leisure hourly rates activities are entitled to various non-wage beneﬁts, e.g., paid holiday and long service leave. Job security Part-time Ongoing employment entitled to receive a smaller Number of hours per week three-ﬁfths of the weekly pay due to is fewer than 38 non-wage beneﬁts fewer hours. Number of hours may be available to full-time reduced entitlements ﬁxed or variable employees. compared to Entitlements received on a Job security full-time employees. pro-rata basis do not receive the loading paid Casual Employed on an hourly, or paid a loading (extra do not receive a ‘as needed’, basis pay, on top of the range of No permanent weekly normal full-time entitlements roster rate) (non-wage beneﬁts), Hours vary from week to Flexibility to agree or e.g long service/sick week; for instance, 10 hours refuse to work at a leave one week and 3 hours the particular time. lack of job security. next May work for more than one employer. No access to entitlements but a loading received to compensate Self-employed An individual who works freedom and no guaranteed for himself or herself ﬂexibility to work income each week where and when lack of ﬁnancial you want to. security. tax advantages have to pay for all being in control of their entitlements the business’s success. Working from home the practice of ﬂexibility of work struggle with working at or from Allow to work from motivation one's home or different countries another space Able to take care of rather than from an office. family and have the freedom Voluntary work Works for no income a nice way to give They receive no work for voluntary back to the people ﬁnancial payment agencies such as the satisfaction and rural ﬁre services pleasure of assisting and surf lifesavers others Traineeship A traineeship is Able to go to school being harassed or on-the-job training while working and discriminated with an employer, get paid against while you study and Provided with new get paid - with a focus on hands-on opportunities practical learning allows you to over academic continue working theory. while you You’ll spend one to learn/study, so you three years, don’t have to depending on your sacrifice your industry and income stream for qualification, learning study. a vocation in areas such as agriculture information technology hospitality Apprenticeship You'll spend three to Gaining knowledge get paid slightly less four years learning Able to have an Balancing work and a traditional trade education while study commitments such as building and working Offers fewer construction automotive cooking You receive a wage opportunities An apprenticeship is throughout your also a practical apprenticeship, qualification where ensuring financial you learn on the job stability while you earn a wage. This increases over the apprenticeship as you master new skills. Difference between apprenticeships and traineeships: Apprenticeships are mainly in trades. This includes building, construction, hairdressing, cooking, manufacturing and engineering. Traineeships are in many industries including information technology, hospitality, retail and agriculture. examine various sources of income, including wages and salaries, commissions, profits and dividends (textbook chapter 3.4.5) Chapter 3.4 - Sources of income from working: Wages: Wages are what an employee receives in exchange for their labour or services. Normally, a wage is a ﬁxed regular payment, paid in increments. If working casually, a wage will be paid per hour; if working part- or full-time, it will be paid per week, fortnight or month as part of a salary. Salaries: A salary is the total package of remuneration paid to an employee. Salaries tend to include your base pay, as well as superannuation, leave allowances and any other elements of ﬁnance such as bonuses. Commission: A commission is another form of payment for a job or service. However, commissions mostly are percentages or ‘cuts’ of a bigger sale and are an incentive for that sale. Commissions are largely used in sales; for example, when reaching targets that boost business income, the business then shares a portion back with the employee who made the sales. Proﬁts: People who operate their own business are self-employed. They make their income from the proﬁt of the business. Proﬁt is calculated by subtracting the expenses of a business from its revenue. This is given by the below equation: Proﬁt = Revenue − Expenses Dividends: A dividend is a sum of money paid regularly by a company to its shareholders out of its proﬁts (or reserves). Some people use dividends as their main form of income and live off their investment dividend payments. Rights and responsibilities in the workplace Students: investigate the roles of various participants in the workplace, including employers, employees, contractors, industrial organisations/unions, state/territory and Commonwealth governments (textbook chapter 3.3) Workplace participants: Role of employees in the workplace: Definition - An employee is someone who works for another person or entity in return for financial compensation. Function/role played - This work may vary in a number of ways including the nature of the work completed, the level of responsibility and the time spent completing the work. Real-world examples - Whether you work as a server at the drive-through at McDonald’s or as the company’s chief executive officer (CEO), you are an employee of McDonald’s. Although their roles and responsibilities differ greatly, both the server and the CEO undertake specific jobs and are paid for their time and effort. Statistical information - As of February 2019, more than 12.7 million Australians were working as employees. Casual, seasonal, part-time and full-time employment are all included in this calculation. It is estimated that just under 31% of Australia’s workforce is employed on a casual or contract basis. Role of contractor in the workplace: Definition - a contractor is a third parties (either individuals or businesses) that provides services to businesses and households. Function/role played - Contractors provide solutions to households and businesses and are typically self-employed. - Businesses use contractors when they wish to use specialists or people with expertise lacking in a business. - Also, contractors do not have to be paid annual leave, superannuation or sick leave and are therefore cheaper for businesses to use. Real-world examples - A large number of contractors work in-home services such as cleaning, building, plumbing, electrical and garden maintenance. - Target stores need visual merchandisers to design window displays at peak periods such as Christmas. Each Target store, therefore, contracts the work of the visual merchandiser to complete the required window display, and then pays them for their contracted time, rather than employing them as full-time employees Statistical information - As of August 2022, there were 1.1 million independent contractors (8.3% of employed) in Australia. Role of employers in the workplace: Definition - an employer provides people with an employment contract to complete set tasks and responsibilities in return for providing people with an income in the form of a wage, salary or commission. Function/role played - All Australian employers are required to offer a safe workplace, adequate financial compensation, necessary training, contribute to superannuation and give workers rights such as break times. - Many government organisations hold employers to these responsibilities. The most influential of these is the Fair Work Commission (FWC). This organisation Real-world examples - Woolworths is the second largest employer with almost 200,000 people working for the company across its range of brands Statistical information - As of June 2018, there were more than 875,000 employing businesses in Australia. Role of trade unions in the workplace: Definition - a trade union is an organisation that serves to advance the interests of its members which are employees working across various industry sectors in the Australian economy. Function/role played - By joining together, workers were able to approach employers and bargain with more strength for improved pay and conditions. - They fundamentally try to improve the rights and working conditions for workers including representing workers in wage negotiations such as the annual minimum wage process which is reviewed annually in June. - Undertake campaigns to work up support for wage increases through running advertising on TV, at sporting events and online. Real-world examples - The Australian Council of Trade Unions is the peak body for 42 affiliated unions that represent almost 2 million Australian workers and their families. - Transport workers’ union - Independent education union Statistical Information: 1920s: Paid sick leave was introduced. Before this, workers went to work sick or stayed home without pay. 1947: Penalty rates (extra money for working outside of normal hours) were established after unions raised the issue with the Arbitration Commission. Role of government in the workplace: Definition - the government is a legislator (law creator) and a body that oversees disputes between employers and employees and hands down minimum wage decisions for roughly 2.5 million people each year. Function/role played - Governments create laws around paid leave entitlements for workers - Governments adjust superannuation entitlements Real-world examples of government businesses - Australia Post - Sydney Water - Defence Housing Australia Real-world examples of government organisations influencing the workplace - Fair Work Commission - Australian Human Rights Commission - Safe Work NSW Statistical information - - Governments (federal, state and local) employed 2,160,000 Australian workers as at the end of June 2022. discuss employer responsibilities to workers and the government, for example, superannuation, paid parental leave, pay-as-you-go (PAYG) withholding, income tax, company tax or the Goods and Services Tax (GST) (textbook chapters 3.8 and 3.9) Laws related to the workplace - Employment contracts Definition of employment contract - This is a legally binding, formal agreement between an employee and an employer. Three important elements to an employment contract - Every employer and employee is bound by a contract of employment. The three elements of an employment contract are offer, acceptance and consideration Common law employment contracts - key features: Definition: a common law contract applies to people when their job is not covered by an award or enterprise agreement. In this situation, an employer and employee negotiate on wages and working conditions. Key features: 1. common law contracts can be fairly short and concise in detail but must offer workers above the minimum wage and provide at least the ten minimum standards of working conditions set by Fair Work Australia 2. Common law contracts usually apply to high-income employees. A high-income employee is an employee who: - has accepted a written guarantee of annual earnings - is guaranteed to earn an annual amount that is more than the high-income threshold. The high-income threshold changes each year. From 1 July 2024, it is $175,000. 3. Many managers and professionals have not traditionally been covered by awards. This includes accountants and finance, marketing, legal, human resources, public relations and information technology specialists. Benefits of a common law contract: - right to sue for compensation if the employment conditions are not met - flexibility to suit the varied needs of individuals - individual effort rewarded. Disadvantages of a common law contract: - offering less protection than other agreements to employees - possible exploitation of employees due to unfair bargaining positions - expense of any court case if either party sues for compensation Award employment contracts - key features: What is a modern award employment contract - Modern awards refer to the legally enforceable minimum terms and conditions that apply to a business or industry. Which groups of workers are covered by modern award employment contracts - They cover employees across Australia who work in the same industries and occupations and apply in most workplaces. They also cover a large proportion of employees in lower-skilled occupational groups in the hospitality, retailing and community services sectors. What information is contained in the modern award employment contract - wages, including penalty and overtime rates - hours of work and rest breaks, including flexible work arrangements - allowances for uniforms or tools - leave, including sick, holiday, long service, study, - family and maternity leave - superannuation - redundancy entitlements Who decides on modern award employment contracts - Modern awards are adjusted for wage increases given in National Wage Cases heard by the Fair Work Commission (FWC), the independent national workplace relations tribunal. Penalty rates - employees get paid a higher rate when working: late night shifts, early morning shifts, weekends, public holidays, and overtime. Allowances - these are extra payments made to employees who: do certain tasks, have a particular skill, use their own tools at work, and work in unpleasant or dangerous conditions. Examples of common allowances include: uniforms and special clothing, tools and equipment, travel and fares, car and phone, first-aid, leading hand/supervisor, and industry of employment (for example, building and construction). Benefits of a modern award employment contract - Some employers will provide above-award payments, especially if they wish to attract more workers to their business or if they want to hold on to their existing staff. - Set a minimum pay and minimum set of working conditions - cover all employees performing a similar job - Protect employees from exploitation Disadvantages of a modern award employment contract - Inflexible – may not suit all employees - Prevent recognition of individual initiative as all employees are paid the same wage rate under an award employment contract - Do not provide workers with an income that matches the average income earned by Australians (e.g. the average income for an Australian worker was about $65,000 before tax as of 2022. As of June 2023, the annual wage for a person earning the minimum wage is about $42,000) Enterprise agreement employment contracts - key features: What is an enterprise agreement employment contract - An enterprise agreement is a negotiated agreement about pay and conditions made at a workplace/enterprise level between an employer and a group of employees or a union. It offers broader terms and conditions than a modern award, and can either replace a modern award or act as an ‘add-on agreement’. Which groups of workers are covered by enterprise agreement employment contracts - This agreement is popular in industries such as education, health care, finance, government/public sector, transport and information technology. Key features of an enterprise agreement employment contract - may cover rates of pay, overtime, hours of work, allowances and leave - must be in writing and approved by all parties - must be approved by the Fair Work Commission (FWC), which must be satisfied that the agreement: a. passes a ‘better off overall test’ (BOOT) compared to the modern award b. does not include any unlawful conditions c. has an expiry date d. outlines how disputes are to be settled e. includes a flexibility clause allowing for variations if required. Rights and obligations of employees and employers: National Employment Standards: 1. Maximum weekly hours of work — 38 hours per week 2. Request for ﬂexible working arrangements — for parents or carers of children under 18 3. Parental leave and related entitlements — up to 12 months unpaid leave 4. Annual leave — four weeks of paid leave per year 5. Personal/carer’s leave and compassionate leave — 10 days paid leave, two days unpaid carer’s leave 6. Community service leave — unpaid leave for voluntary emergency activities and up to 10 days paid jury service 7. Long service leave — after a period of continuous employment 8. Public holidays — a paid day off on a public holiday 9. Notice of termination and redundancy pay — up to 4 weeks’ notice of termination and up to 16 weeks’ redundancy pay, both based on length of service. 10. Provision of a Fair Work Information Statement — a statement for all new employees about their rights and entitlements. Employer responsibilities to employees and government - taxation: What is taxation - the part of our income taken by the government to pay for collective goods and services Why do Australians have to pay tax - To supply sufficient quantities of collective wants (i.e. schools, hospitals, defence forces and social welfare payments) the government needs to raise money, which it does through taxes. Taxes are the main source of government revenue to fund the provision of collective wants in society. Types of taxes charged by the Australian government 1. Pay as you go (PAYG) also known as income tax - The most common method of paying personal income tax is through the Pay As You Go (PAYG) system. It generally applies to wage and salary earners. Your employer deducts tax from each pay and sends this to the Australian Taxation Office (ATO). The PAYG system is a progressive tax system meaning the more that people earn, the more that they get taxed. 2. Goods and services tax (GST) - the GST is levied on most goods and services sold for domestic consumption. GST is paid by consumers but is remitted to the government by the businesses selling the goods and services. The current GST rate is 10%. GST revenue gets passed onto the state and territory governments by the federal government. The GST is a regressive tax system meaning that low income earners pay a larger proportion of GST out of their annual income than higher-income earners. 3. Company taxes - paid by businesses out of their profits 4. Customs duty - a tax on some imported goods 5. Capital gains tax - a tax on profits made on the sale of assets such as property and shares. Employer responsibilities to employees and government - taxation: Income tax return - Australia’s tax system works on self-assessment. This means that you must show your assessable income and claim only the deductions and offsets (formerly called rebates) to which you are entitled. An income tax return has to be completed and returned to the ATO at the end of the financial year. The ATO will then check your return to determine whether you have paid enough tax. If you have not, you will have to pay more tax. If you have paid too much tax, the ATO will give you a refund. Personal income tax collection: When people work, they pay tax based on their income Paid parental leave: What is paid parental leave - Paid parental leave enables workers to receive some pay while they are off work with their newborn baby. When did it start - The government-funded paid parental leave scheme commenced in 2011 Features of paid parental leave - females receive payment for 18 weeks within the first year after the birth of the child. The amount paid is based on the weekly value of the national minimum wage. How much families can get for a child born or adopted after 1 July 2023 - The current payment for Parental Leave Pay is $183.16 a day before tax, or $915.80 per 5-day week. This is based on the weekly rate of the national minimum wage. Partner paid leave - the federal government decided in 2012 that fathers and partners were also entitled to two weeks of paid parental leave. Dad and Partner Pay is currently $812.45 per week before tax. Paid parental schemes around the world - the USA offers no paid parental leave while Norway offers a generous 46 weeks of leave at 100% of wage. Superannuation: What is superannuation - it is a compulsory savings scheme whereby your employer contributes part of your wage or salary (10.5 per cent as of 1 July 2022) into a special type of investment account known as a superannuation fund. These funds are then invested to increase their value before they are paid to you when you retire. Total pool of superannuation funds under management - as of the end of December 2021, the total value of Australian superannuation assets was $3.5 trillion. In 1996, the pool of accumulated superannuation savings was $238 billion. Personal contributions are tax-deductible - the government encourages employees to make personal contributions by allowing some contributions to be tax deductible. For example, you can make after-tax voluntary contributions into your super fund up to the value of $27,500 and claim a tax deduction from your taxable income. Supporting low and middle-income earners - through super co-contribution scheme, low- and middle-income earners receive a payment of up to $500 from the government if they voluntarily contribute to their superannuation up to the value of $500. examine laws related to the workplace, including: (textbook chapters 3.10, 3.11) – Work Health and Safety (WHS) legislation – Equal Employment Opportunity and anti-discrimination laws – penalty rates and the role of the Fair Work Commission Laws related to the workplace: Work Health and Safety Laws (WHS) Details on the law - On 1 January 2012, the Work Health and Safety (WHS) Act 2011 came into effect meaning Australian businesses must abide by its stipulations. Definition - The WHS Act aims to ensure the safety and protection of employees and outlines the legal requirements for employers and employees. Under the WHS act, employers must ensure - - their workplace is safe - machinery is regularly inspected and maintained - protective clothing and adequate training are provided - committees have been set up to enforce the WH&S - they have a written WHS policy. - Under the WHS act, employees must - - comply with safety instructions - report any situation they think may be dangerous - cooperate in the investigation of accidents to prevent them from happening again. Anti-discrimination laws Definition - Discrimination occurs when a person is treated less favourably because of factors such as gender, age, ethnicity, religion or disability. The main legislation in this area includes - 1. Racial Discrimination Act 1975 (Cwlth) - This Act ensures that employers cannot specify particular racial or cultural characteristics when advertising a position. 2. Sex Discrimination Act 1984 (Cwlth) - This Act makes it unlawful to discriminate on the basis of sex, pregnancy or potential pregnancy, or marital status, with respect to dismissals, family responsibilities. It also prohibits sexual harassment. 3. Disability Discrimination Act 1992 (Cwlth) - This Act ensures that, within reason, all people with a disability have equal access to employment. 4. Age Discrimination Act 2004 (Cwlth) - This Act ensures that people are not discriminated against on the basis of age. 5. Affirmative Action Act 1986 (Cwlth) - This Act requires businesses to promote equal employment opportunities (EEO) for those people previously discriminated against. Unfair dismissal: Unfair dismissal - this occurs when an employee is dismissed by their employer and they believe the action is harsh, unjust or unreasonable. How businesses can avoid unfair dismissal - To avoid misunderstandings, written warnings and/or notice is preferable. Written confirmation of resignation is also preferable to verbal statements. Employees must be given proper notice and employers must comply with procedures established in law, including the unfair dismissal laws in the Fair Work Act 2009. Small business fair dismissal code - Small business employees cannot claim unfair dismissal in the first 12 months following their engagement. Small businesses are employers with fewer than 15 employees. What are penalty rates? Penalty rates are higher pay rates that employees need to be paid for working particular hours or days. Employees may be entitled to a penalty rate when working: weekends public holidays overtime late night shifts or early morning shifts.

Employment and Work Futures (Topic 3) PDF

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