What are Employment Agreements
The advantage of employment agreements is that they combine rule sets, leave allowance templates and pay rate templates. Also, pay increases will happen automatically on employee birthdays and/or anniversary dates if you assign an employee to an agreement.
Where should I begin
It is recommended that employment agreements are set up if you want automatic pay increases to happen in the following scenarios:
- Juniors’ rates increasing on their birthday.
- Apprentices moving to the next year of their apprenticeship.
- Award rates reviewed on their anniversary.
- Employees being paid for higher duties.
Things I Should Consider
If you require an employment agreement to be created, the required configuration is:
Hlepful Tip: This is the name of the agreement and is a required field.
Helpful Tip: If there are different classification levels (i.e. higher duties), you can rank each agreement. The Rank field is optional and does not need completing in order to create an Employment Agreement.
- Employment type.
Helpful Tip: The available employment types are Full time, Part time or Casual. In order to create an Employment Agreement you need to complete this field.
- Pay Conditions.
Important: Pay conditions can either be based on the award rule set, or a customised rule set. In order to create an Employment Agreement you need to complete this field.
- Leave allowances templates.
Helpful Tip: You can add more than one template to cater for different state leave entitlements or different leave entitlements. In order to create an Employment Agreement you need to complete this field.
- Pay Rate Templates based on.
Helfpul Tip: You can create age based pay rate templates; templates that progress according to anniversary or a combination of both. In order to create an Employment Agreement you need to complete this field.
The System bases automatic progression to the next pay rate on:
- Date of birth.
- Anniversary date (in years).
- Anniversary date (in months).
- Date of birth and anniversary date (in months).
If you are using one of the available pre-built awards, the employment agreements for the award will have been created per the award’s classification levels.