Many Victorian businesses not already covered by Federal awards face increased labour costs and compliance requirements in the New Year, says VECCI.

"This has come about as a result of changes initiated by the State Government in 2003 that have resulted in industrial relations powers being transferred to the Federal jurisdiction", says VECCI General Manager - Workplace Relations, Mr David Gregory.

"These changes have created the ability for comprehensive Federal award coverage to be applied to those businesses not previously covered by Federal awards.

"This means that the following employment conditions will be mandated for affected businesses:

• the 17.5% annual leave loading;
• weekend penalty rates of time and a half and double time for normal rostered work;
• mandatory overtime rates;
• new redundancy benefits and other leave conditions; and
• a comprehensive range of additional employment benefits.

"These entitlements will override existing workplace arrangements to the extent that they do not match the new award conditions. They can begin to take effect from 1 January next year.

"The new entitlements have the potential to add real cost increases to the wages bill of Victorian employers, particularly those trading outside the traditional Monday to Friday, 9 - 5 period, as so many now are.

"Employers in the retail, entertainment, hospitality, restaurant, accommodation and tourist sectors will be particularly affected by the new wage costs.

"To assist business owners and managers in preparing for new compliance and employment arrangements, VECCI will be running a series of briefings which are open to all businesses", says Mr Gregory.

For all media enquiries, please contact:
VECCI Strategic Communications
Ph:      (03) 8662 5226
email: media@vecci.org.au