Your Awards & Agreements are set up to your requirements with foundU during your implementation. This is the brain behind the platform which helps automate your payroll.
Once it is set up, you can add new Awards or update your Awards and associated settings as needed.
If you're looking to add a new position to an existing Award, see our helpful guide here.
Setting up an Award is a 5-step process:
- Rate Labels & Settings
- Positions & Pay Rules
- Pay Item & Allowances
- Position Groups (optional)
Locate your Awards and settings by navigating to the hamburger icon to open the full menu and select Awards & Agreements.
To add a new Award select the New Award button, enter the Title and Short Title and Save.
Select 'No Pay' for example for a volunteer or contractor, this would result in not having these costed or processed in payroll.
Please note: It is very important to test any changes you make to your awards to make sure your payroll is accurate. It is your responsibility to accurately interpret and understand the awards and agreements your employees are employed under. foundU does not provide any advice in this regard.
The next step after entering pay settings is to add rate labels. Rate labels must be preset for use when you are adding positions and pay rules.
To add in rate labels:
- Select the hamburger icon to open the full menu and navigate to Awards & Agreements > select your desired award and from the drop-down menu select Rate Labels & Settings.
- To add a new Rate Label click Add Rate Label. A rate label needs to be added for each rate available under the award (including the normal rate). Complete the rate details and click Save. Repeat for all applicable rates under the award/agreement.
- Also ensure that you're happy with your settings which can be located by scrolling down when in the Rate Labels screen. If you update any settings, click Save at the bottom. Repeat for all applicable rates under the Award & Agreements.
- Casual Loading (%): The default is set to 25% (change if required).
- Leave Loading (%): Enter a value (if applicable). This will applies loading to all employees in this Award, for more information on leave loading click here.
- Should entitlement hours count towards hours worked for calculating overtime? This setting allows you to choose whether paid leave hours are included when calculating overtime.
- When should daily ordinary hours reset? This setting defines when a shift will reset the count for the maximum hours in a day.
- How should shift allowance quantities be calculated? Determine whether or not a shift allowance is paid on the exact quantity of hours worked or rounded up so the employee will receive the whole allowance for every part of an hour worked.
- Penalty Rate Loading Rule: choose the applicable rule for calculating penalty rates. Consult the award or agreement if you are unsure.
- At what point in the shift should an unpaid break be applied? Select where you would like the unpaid break to be taken from.
- Allow an override of maximum hours when approving timesheets?
- This only applies to platforms using Jobs and Timesheets (older part of foundU platform).
- If your platform does use Jobs and Timesheets, by selecting yes to this will allow you to update the rules associated with maximum ordinary hours of work per day upon timesheet acceptance.
- Should maximum ordinary hours worked be averaged over a fortnight? Where an employee is paid fortnightly, determines whether over time should be calculated over the week or per fortnight.
- Should an employee's overtime reset if the shift goes into ordinary hours? Where an employee works overtime hours before ordinary hours on a shift and then goes back into overtime hours, determines if the overtime count should reset for the second batch of overtime.
Classifications can be entered after Rate Labels & Settings are set up.
- From the hamburger menu, Click on Awards & Agreements - then select an award by clicking it. From the options now listed, select Classifications.
- This will display any existing classifications which can be edited by clicking the Edit icon.
- Click the Add New tab, fill in settings and click Save.
- Name - e.g., Support Worker - Level 1.1.
- Short Name - e.g. L1 (yr1) e.g., Support L1.1. You can enter the full name in this field if you wish.
- Rate without Casual Loading - enter the standard OTE rate without casual loading. The casual rate will be calculated automatically using the loading amount you specified in Settings.
You need to specify pay rules for each position you add under the award or agreement (Awards & Agreements > View Awards & Agreements > Positions & Pay Rules). Click on the position then click Edit to begin.Add Time Frames
Time Frames determine how Employees should be paid for ordinary hours (OTE).
Ordinary hours are "The amount of money an employee would get for the hours worked. This does not include any additional overtime payment" (Fairwork, 2021)
Ordinary hours also attract leave accruals for Permanent (FT or Part time employees) as well as superannuation. For more information on Ordinary hours see the helpful Fairwork website.
Add a Time Frame for each position in the following sections: Weekday, Saturday, Sunday and Holiday.
- Click + add Time Frame.
- Hours Worked Between - select the span of ordinary hours. Enter 12am-12am if the award/agreement does not provide one.
- Shift Label - enter a label (if applicable). This is usually only necessary where shift allowances apply.
- Click + add Ordinary Hours and select a pay rate - the rate will usually be Normal (Ordinary) on a weekday.
- Minimum Hours - enter the minimum shift length.
Overtime rates will be applied to all hours outside of the Time Frames you enter.Add Overtime rules
- Select an overtime rate (beneath After).
- Click + add Overtime if the overtime rate changes - e.g. if time and a half applies for the first two hours of overtime then double time thereafter you should enter:
- Up to hour - 10 (if the maximum daily ordinary hours are 8)
- Rate - Time and a Half
- After - Double
You will also need to enter overtime rules for hours worked outside the maximum ordinary hours per week.
The system automatically diverts to overtime rates after the maximum daily (or weekly) ordinary hours are exceeded so you do not need to enter these limits again.Add Meal Allowances
Mandatory meal allowances can be entered as pay rules in each applicable section.
- Hours - enter the number of hours required for the allowance to apply.
- Type - specify whether these hours are in 'Total' or 'Overtime' hours only. Selecting 'Total' is recommended because selecting 'Overtime' will count all overtime hours, even those that are under the maximum daily limit.
- Pay - enter the amount paid to the Employee.
- Charge - enter the amount the Client/Location will be charged for the allowance (if applicable).
- Click + add Meal Allowance to add another meal allowance rule and save.
Pay rules can be copied and pasted to other positions if they apply consistently under the award/agreement.
- Copying a position
- Adding new position to position groups
- Adding new position to operation rates books
See our helpful guide here.
See our helpful guide here.
See our helpful guide on Award tests here.
As part of your payroll checks you're now able to run an Awards test per employee either from:
- The Pay Page > Draft payslip > View breakdown or
- From Pay > Award test to view a full colour coded break down of the interpretation including:
- Ordinary hours
- Overtime hours
- Unpaid break times
Please note this Screen Navigation has no sound, please watch, and follow along for helpful tips on the Award test feature.
If you would like to see every person that worked in a particular week (similar to the Award test) check out the Labour Management Report.
- Tip: When using the Labour Management Report (located in financial reports) ensure to group by Operation, position and employee and ensure to click the view Shift breakdown checkbox to see information such as overtime, time in a half etc.