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The war for talent and salary inflation

18/11/2022 minute read Nick Gallimore

Recently, the Australian government announced changes to the overtime and penalty rate laws for the IT and engineering industries. This change has major implications for businesses in these sectors, as they must now ensure they are accurately tracking and calculating employee hours to avoid non-compliance penalties. 

Fortunately, Advanced has a solution: our time and attendance software, which can help businesses accurately track employee hours, simplify the process of calculating overtime and penalty rates, and maintain compliance with the new legislation. Our employee time and attendance software can integrate with your existing payroll to help boost efficiency, reduce labour costs and ensure your employees are paid the actual hours they work. 

What's Changed in the Legislation? 

Under the new legislation, IT and engineering companies are required to pay overtime rates to employees who work more than 38 hours per week or 7.6 hours per day. Additionally, penalty rates have been increased for employees who work on Sundays or public holidays. The new rates are: 

  • Time and a half for the first two hours, double time for all additional hours worked on Sundays 
  • Double time and a half for all hours worked on public holidays 

These changes can be challenging for businesses, especially those who are using manual time and attendance processes. However, Advanced's time and attendance software can help businesses easily comply with the new laws with their easy-to-use cloud-based solutions.  

According to the Fair Work Ombudsman, fines for non-compliance when paying employees can range from $16,500 per contravention up to $825,000 per contravention depending on the nature and severity. These fines are issued on top of the cost of reimbursing the employees with their missed wages.  

How Advanced's Time and Attendance Software Can Help 

Our time and attendance software provides businesses in industries including IT and engineering with an accurate and efficient way to track employee hours, simplifying the process of calculating overtime and penalty rates. We combine next generation access control and time & attendance on a single platform. We offer a versatile, scalable system that supports multi-site management and remote access.  

Below are some key features that can help businesses maintain compliance: 

Automated Time Tracking: Advanced's time and attendance software allows employees to clock in and out electronically, eliminating the need for manual time tracking. This makes it easy for managers to track employee hours accurately, ensuring compliance with the new legislation. 

Accurate Overtime Calculations: Our software automatically calculates overtime rates for employees who work more than 38 hours per week or 7.6 hours per day. This makes it simple for managers to ensure they are paying the correct rates and avoiding non-compliance penalties. 

Customised Penalty Rates: Our software can be configured to accommodate the new penalty rates, ensuring that employees who work on Sundays or public holidays are paid the correct rates. 

Streamlined Reporting: Advanced's time and attendance software provides businesses with detailed reports, making it easy to track employee hours, overtime, and penalty rates. This can help businesses identify compliance issues early and take corrective action to avoid penalties. 

Conclusion 

The new legislation has made it more important than ever for IT and engineering businesses to accurately track employee hours, calculate overtime and penalty rates, and maintain compliance. Advanced's time and attendance software provides a comprehensive solution that can help businesses meet these requirements with ease. 

By automating time tracking, accurately calculating overtime and penalty rates, and providing detailed reporting, our software helps businesses reduce compliance risks and avoid penalties. If you're looking for a reliable and efficient way to manage employee hours and comply with the new legislation, Advanced's time and attendance software is the answer.