‘Paymaster’ concept a nightmare for retailers

Written on the 1 December 2010

RETAILERS could have a ‘consuming administrative nightmare’ on their hands if legislation proposing companies act as ‘paymasters’ for Federal Government-funded parental leave payments is passed.

The Australian Retailers Association (ARA) submitted a paper rejecting the motion at a Senate hearing last month, which intended to implement the new structure from January next year.

ARA executive director Russell Zimmerman, says the industry welcomes the 18 week government-funded paid parental leave scheme, but sees no sense in retailers acting as the conduit to transfer money between Centrelink and the employee.

“Under the current proposed paid parental leave initiative, government agencies will make payments direct to eligible employees for the first six months of the scheme before employers take over the role of ‘paymaster’,” says Zimmerman.

“For a small retailer, administering government parental leave payments means upgrading payroll systems, seeking professional advice from accountants and employment relations specialists, managing wages without normal benefits likes superannuation and work cover.

“All these operational changes create more red tape for retailers who are already dealing with major industrial relations changes.”

Zimmerman says retailers are welcoming the paid parental scheme, but it shouldn’t come at a cost to employers.


Latest News

STAFF CHURN BLAMED FOR MCGRATH EARNINGS DOWNGRADE

MCGRATH will fail to meet earnings forecasts after some of its star real estate agents defected to growing Perth firm...

MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

LAURA McBain (pictured) has resigned as a director of Bellamy's Organic (ASX: BAL) today, effective immediatel...

REDBUBBLE TO MISS IPO FORECASTS

REDBUBBLE, the online marketplace for independent artists, will miss a series of forecasts set out in its IPO in its ...

BLUESCOPE CONTINUES STRONG RUN WITH GUIDANCE UPGRADE

BLUESCOPE Steel (ASX: BSL) is trading up 7.51 per cent at $11.16 per share after upgrading its half-year guidance thi...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter