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Changing employee classifications and back pay

Do you understand changing employee classifications and back pay obligations? We were recently asked the following question.

 

QUESTION

An employee has taking on some higher-level tasks. Because of this I am in the process of changing them from a level 2 classification to a level 3. Am I required to back pay them or it is reasonable to start from now?

ANSWER
It really depends on the quantum of the situation. For example, how long has the employee been completing these tasks and the proportion of their workload?

It’s important to talk with your staff member. Explain to them that you’ve made an enquiry about their classification and moving forward, you will be paying them at a level 3.

If after reviewing the specific details, you determine it is reasonable to back pay the employee for a specific period, don’t forget to also calculate superannuation for normal time earnings.

If you are unsure whether or not it is reasonable to back pay the employee then talk with a HR expert. It’s important to discuss the specifics and if required, liaise with the Fair Work Ombudsman.

Are you unsure whether or not you are paying your staff correctly or need more help navigating employee classifications and back pay? Get in touch with our team.