Making sure you get paid, and paid on time is always a priority. Your employer is responsible for ensuring they meet these requirements under fair work laws. If they do not follow these requirements, there can be legal consequences. In order to avoid these situations, it is best to know how these laws apply. It is best practice for employers and employees to familiarise themselves with these standards. It is no secret that in a diverse professional landscape, how each business runs its affairs can vary widely. Accordingly, each employer pay cycle will be different.
Fortunately, the general rules pertaining to pay cycles are pretty straight forward. Australian fair work laws set out a number of generally recognised and expected legal obligations. However, if your circumstances differ from the norm, this article may be useful. In addition to fair work laws, some other factors dictate the frequency of payment, and we have explored these for you below.
General standard
The standard rule under Australian fair work laws is that employers pay their staff at least once per month. This minimum requirement is also accompanied by some other employee entitlements. The Australian Fair Work Ombudsman website lists these entitlements:
- payment must be made in the following ways: cash, cheque, money order or postal order, or electronic funds transfer
- These payments must be accompanied by a payslip
- They cannot be paid-in-kind (i.e. with food or gifts)
- The pay cycle must adhere to any additional loading, overtime, and super contribution requirements
Other factors
The following factors may also have some bearing on the frequency of pay:
- Employee’s age
- The state they are in
- The industry
- Employee qualifications
- Work duties and responsibilities
- Award type
- Type of employment
- Employment agreement
Employment agreement
So long as the main employment entitlements are satisfied under fair work laws, the employment agreement will dictate any additional conditions for employees. As each situation or business structure is different, it is important to assess these needs on a case by case basis. Some employment agreements might offer up greater allowances for the pay cycle than the usual standard frameworks. You might prefer certain arrangements over others and opt for those in the agreement. For example, if your employment agreement stipulates weekly payments over monthly payments. Therefore, it is important to ensure that all parties are aware of what is stipulated in the agreement. It might be worth consulting with a contract lawyer throughout this process.
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What about missed payments?
Sometimes, mistakes can occur. Alternatively, businesses can face financial trouble. In any event, if your employer is not paying you at the frequency with which is legally acceptable, it is important to rectify the problem. The first step is to address the issue with your employer. Make sure you bring it to their attention. Sometimes, in a busy fast-paced company, an employer may be genuinely unaware of your situation. Keeping an open dialogue is key to avoiding problems from recurring. If the problem persists, it can eventually go before the Fair Work Commission. However, it is recommended that you try to resolve this before it escalates. These tribunals and laws are in place to protect your interests. They can nevertheless induce a great deal of stress, and it is much better to avert these issues from the outset.
Staying on top of your finances keeps stress at bay. Ensuring that you are paid the proper amount, and at the appropriate times, is an important step in maintaining your finances well. If you are unsure about your rights in respect of wages and payment, it may be worth consulting with an employment lawyer for advice.
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