Biggest Pitfalls in the Fitness Industry
The fitness industry is a thriving sector of the Australian economy, employing hundreds of thousands of people across the country. In order to ensure that workers in this industry are fairly compensated for their work, the Fair Work Commission has created a modern award specifically for fitness workers.
This award covers employees such as gym instructors, personal trainers, and group fitness instructors. The award sets out minimum wages and conditions for these workers, including entitlements to annual leave and personal/carer’s leave. It also includes provisions for overtime rates and penalties, and allowances for shiftwork.
However, while you can review the Fitness Industry Award on the Fair Work website, the document is often filled with complicated legal jargon, making it challenging to understand whether or not your fitness business is meeting all the compliance requirements.
For example, did you know that an employee is entitled to a minimum 10-hour break between shifts?
Where an employee works overtime and their next rostered working day is less than 10 hours after they finish working the overtime, then the employer must either:
- delay the start time of their next rostered working day to allow a 10 hours break;
- or pay the employee 200% of the minimum hourly rate until the employee has a break of at least 10 hours.
If you don’t adhere to this condition, you could face several penalties.
Another big pitfall for employers in the fitness industry is the award allowances.
In the Fitness Award, employees are eligible for specific allowances based on their skills or tasks. The allowances also apply when employees use their own tools or work in unpleasant or dangerous conditions.
For example, if an employee is required to supervise or is placed in charge of other employees, they must be paid an allowance, irrespective of their classification under the relevant award.
It is common for employers to think that they can add a chunk of money to their employees’ salaries. But that’s not how it works. You have to pay them according to each and every allowance relevant to their line of work. And if you don’t, you could face some pretty hefty penalties.
Unfortunately, there’s not much guidance from the Fair Work Commission regarding staying compliant with all its regulations.
So, what is the solution? Cloud payroll software and automated time and attendance software.
There are over 100 modern awards that cover a wide range of industries and occupations. complying with these awards can be a complex and time-consuming task for businesses. Fortunately, cloud payroll systems can help to streamline the award compliance process.
By automating the calculation of award rates and entitlements, cloud payroll systems can take the guesswork out of compliance. In addition, cloud payroll systems can provide real-time visibility of an employee’s entitlements, making it easier to manage staff across different awards.
As a result, cloud payroll systems offer a simple and effective solution for modern award compliance