Document 6519933

“Maximising Organisational Performance”
Why Do An HR Audit?
May 2012
Why Conduct An HR Audit?
Penalties totalling almost $1.5 million!
Since July 2010,
125 penalty matters finalised.
• There has been a 20% rise in the level of fines issued by the Fair Work Ombudsman (FWO) for breaches of the Fair Work Act over the past 18 months.
• The FWO now regularly imposes penalties in the high $100,000 and mid‐
$200,000 range. A fine for a single breach of the Act is currently $3,000.
• Court penalties are intended to serve as a warning to others to ensure they understand and comply with national workplace relations laws.
• It is essential that companies ensure they are not in breach of the Award.
The highest‐ever was $288,000 against a small Adelaide cleaning company ‐ underpaid two vulnerable workers less than $4,000!!
May 2012
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Example Fines Recently Imposed
Month
Company
Fine
Grenpro Pty Ltd and sole director and part‐
07/10 owner Aaron Michael Grennan
07/10
07/10
08/10
08/10
8/10
10/10
11/10
May 2012
$11,550 for failing to provide employment records for an employee who claimed he had been underpaid
Shrek Pty Ltd and sole owner‐director Peter $184,250 for underpaying 18 Court
employees
No. 1 Riverside Quay Pty Ltd
$25,000 for failing to follow correct procedures when it lodged Australian Workplace Agreements
Compumark Pty Ltd, owner‐operator Giuseppe $120,800 for underpaying two employees
De Simone and former manager Alan Evers‐
Buckland
Stewarts Transport & Logistics Pty Ltd and $60,200 for underpaying one owners Rodney Stewart and Pamela Stewart
employee, failing to keep proper records and not issuing payslips
D.Z. Import & Export Trading Co. Pty Ltd and $178,200 for underpaying two director Zheng Ming Zhu
employees
Gisela Bottcher, owner‐operator of GB Studio $18,480 for underpaying 11 employees and dismissing an Enterprises, and Wolfgang Bottcher, owner‐
apprentice who queried his pay
operator of Cardock Pty Ltd
Contracting Plus Pty Ltd and manager‐sole $214,500 for sham contracting and director Randall David Rowe
underpaying 116 employees
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What Is An HR Audit?
DEFINITION
The HR Audit is an objective study and analysis of your organisation’s current HR
programs, policies, practices and procedures, aimed at ensuring compliance with the Fair
Work Act, as well as benchmarking existing HR practices with acceptable HR ‘best
practice’.
It takes approximately 1 – 1½ days to complete, depending on the size and complexity of
the organisation, with a follow up report delivered within 5 days after the audit.
WHEN IS AN HR AUDIT NEEDED?
9 If you are concerned about compliance issues with regards to existing legislative
requirements.
9 If you have never conducted one before, in order to gain a clear perspective of the HR
aspects of your business.
9 Prior to doing any planning and budgeting.
9 If you are considering making changes or revisions to your HR programs and practices.
9 If there is an indication of internal HR or organisational problems.
9 If you are considering selling your business, or prior to buying a business.
May 2012
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How Will The Audit Be Conducted?
WC will require access to a Conference or Meeting Room and a designated part-time Project Coordinator for
the duration of the Audit.
WC will also require access to all relevant documentation pertaining to the company structure and HR
systems including but not necessarily limited to the following:
ƒ Business plan
ƒ Company vision, mission and values
ƒ Organisational charts
ƒ Job structures and job descriptions
ƒ
Employee records/files relating to letters of offer, terminations and administrative warnings
ƒ Recruitment and induction procedures
ƒ Employee Handbook, Policies and Procedures Manual or copies of individual policies if no manuals exist
ƒ HR Management systems such as Performance Management documentation, career development and
management development
ƒ HR IT systems, including a brief overview of their operation
ƒ Training and Development records and procedures
ƒ Internal communications publications
ƒ Employee Relations documents including relevant awards, agreements and other industrial instruments
ƒ Pay records and related documentation
May 2012
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Benefits Of This Approach
The benefits of undertaking such an audit are that it is:
9 conducted by an independent external company experienced in HR;
9 summarizes your key programs, policies, practices and procedures;
9 evaluates your practices according to commonly accepted standards,
international benchmarks and key national requirements;
9 identifies problems and inefficiencies;
9 summarises the major HR strengths and weaknesses of your business;
9 recommends areas for improvement and refinement;
9 outlines actions for modifying programs, policies, practices and
procedures; and
9 indicates the priorities and degree of urgency of any new or revised
requirements.
May 2012
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Contact Details
Further information is available from:
Wal Beattie
Principal
Ask HR Pty Ltd
ABN: 341 010 842 08
PO Box 6131
Linden Park, SA 5065
AUSTRALIA
Phone: 0412 158 893
Email: [email protected]
www.askhr.com.au
May 2012
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