'Paymaster' concept a nightmare for retailers

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.

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

ASIC secures its first court win for greenwashing against US giant Vanguard

ASIC secures its first court win for greenwashing against US giant Vanguard

The Australian corporate watchdog has caught out one of the world&r...

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Australian-founded medicinal cannabis company Althea Group (ASX: AG...

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Listed funds manager 360 Capital Group (ASX: TGP) has offloaded its...

The party’s over: Splendour in the Grass festival cancelled for 2024

The party’s over: Splendour in the Grass festival cancelled for 2024

Splendour in the Grass, Australia’s largest winter music fest...