FARMERS have been warned to plan their casual employment carefully since new rules about seasonal workers’ pay took effect.
Seasonal workers, such as those who are taken on for farms’ harvest seasons, could become entitled to overtime pay and night loadings for the first time from July 1, due to decisions by the Fair Work Commission.
It was one of the biggest changes for Australian farmers in some time, regional advisory firm Crowe Horwath said.
“With 80 per cent of farms needing the support of casual staff, the effect is set to be widespread,” it said.
The changes meant businesses would need to carefully plan their casual employment to make sure they were compliant with award conditions, partner Tony Hickey said.
“Ignoring these changes will potentially disadvantage both business owners and their employees,” Mr Hickey said.
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“Preparing for these changes should be a top priority for any horticultural business that uses significant casual labour resources.”
The changes might speed the take-up of technology on farms.
But requiring overtime payments for seasonal farm workers is still being considered, according to the federal government.
A spokesman for Workplace Minister Craig Laundy said Fair Work was still considering applying overtime arrangements for casuals.
“It has not yet made a final decision or determination on this matter,” the spokesperson said.
”From 1 July this year, under the horticultural award, the minimum wage rates increased by 3.5 per cent.
“Some allowances, such as meal allowance, may have also been adjusted accordingly.”
The director of agricultural technology firm SproutX, Andrew Lai, said while labour costs may have increased, it does provide further incentive for agribusinesses to adopt new technologies to increase efficiency.
“Australia is already a world leader in ag innovation and this change will help to drive a further adoption of on-farm technology,” Mr Lai said.
Ignoring these changes will potentially disadvantage both business owners and their employees.
- Tony Hickey
Many farmers will also need to be mindful of a 3.5pc increase to the minimum wage, to $719.20 per week, from July 1.
The increase was significantly ahead of the inflation rate.
Consumer price index inflation for the year to March was 2pc in Hobart and 1.9pc nationally.
The commission said it took into account matters including:
- Promoting social inclusion through increased workforce participation;
- the relative living standards and the needs of the low paid; and
- various economic considerations.
The Australian Industry Group had argued for a below-inflation 1.8 per cent minimum wage increase, while unions wanted a 7.2 per cent increase.
- This story first appeared on The Examiner.
