Imagine this: An employee leaves your company unexpectedly, triggering a cascade of complex calculations for unpaid leave, redundancy pay, and other employee entitlements. Mistakes happen, and before you know it, you’re facing a legal dispute, hefty fines and reputational damage. That can be avoided with GTB Services.
The Fair Work Ombudsman (FWO) recovered over $1 billion in unpaid entitlements in the last two years alone—an average of $1.4 million every day!
Worker Entitlement Funds (WEFs) can be your shield against these compliance nightmares. They provide a structured, compliant way to manage employee entitlements, offering peace of mind for both you and your workforce.
What Are Worker Entitlement Funds and Why Do You Need Them?
WEFs act as a safety net, ensuring your employees receive their rightful entitlements when they leave your company, regardless of the reason for their departure. They work by having you, the employer, make regular contributions into a fund. These funds are then used to pay out entitlements like long service leave, sick leave, or redundancy pay when an employee’s employment ends.
This not only protects your employees but also safeguards your business from potential financial strain, legal complications, and operational inefficiencies arising from non-compliance. Employee disputes can drain your time and resources and damage your company’s reputation.
Failing to meet your obligations can lead to low morale, decreased productivity, and difficulty attracting and retaining top talent.
Are Your WEF Contributions A Ticking Time Bomb?
WEF legislation is complex and ever-evolving. The recent Protecting Worker Entitlements Act 2023 has brought significant changes, making compliance even more challenging. This includes:
- Increased flexibility for unpaid parental leave – Are your policies up to date?
- Stronger protections for migrant workers – Are you confident your practices are compliant?
- Clearer rules on employee-authorised deductions – Are your payroll processes watertight?
- The right to superannuation enshrined in the NES – Are you meeting your superannuation obligations?
Here are some key questions to ask yourself:
Is your chosen WEF ATO-approved?
Only approved funds are eligible for tax concessions. Don’t risk missing out on these benefits due to an oversight.
Are your contributions accurate and up-to-date?
Underpayment of entitlements can result in significant back pay, interest, and penalties. Ensure you’re contributing the correct amounts based on the latest awards and agreements.
Can you guarantee timely payouts?
Delays in paying out entitlements can lead to disputes, damage your reputation and even land you in court. A well-managed WEF ensures a smooth and efficient payout process.
Are your reporting practices airtight?
Strict reporting requirements demand meticulous record-keeping. Avoid the headache of audits and investigations by maintaining accurate and transparent records.
If you’re unsure about any of these, it’s time to seek expert guidance.
GTB Services: Your Partner in WEF Compliance and Peace of Mind
At Gauld Tulloch Bove, we specialise in helping businesses establish and manage compliant WEF arrangements. Our team will:
- Assess your unique needs: We’ll take the time to understand your industry, workforce, and existing agreements to tailor a WEF solution that fits your business like a glove.
- Implement a compliant solution: We’ll guide you through the setup process, ensuring you meet all legislative requirements and avoid costly missteps.
- Provide ongoing support: We’ll keep you informed about any changes in legislation and provide ongoing support to ensure your WEF remains compliant.
Client Quote: “The introduction of WEFs raised concerns about compliance. GTB provided clarity on the new legislation and helped us implement necessary changes.”
Ready to turn employee entitlements from a burden into a business advantage? Discover how our WEF services can bring peace of mind to your business. GTB’s acquisitions teams have commenced registering companies that are eligible for the 2024 financial year.
Get your FREE consult! Reach out to GTB’s WEF compliance team to discuss a potential 2024 WEF assessment before 30 April 2025.
