Please change this image The Pay Date Change Objectives • Provide the context for the proposal for the change to the pay date • Outline the University’s proposal, including assistance for staff • Set out the process for consultation and implementation • Provide you with the opportunity to ask questions, identify issues and/or make suggestions Introduction The ACU Staff Enterprise Agreement 2013-2017 makes provision for the fortnightly pay cycle to be changed. Consultations with staff are being conducted before a final decision is made about how the change to the fortnightly pay cycle will be implemented. A proposal has been developed for staff comment by 14 July 2014. Why change the pay cycle? • ACU staff are currently paid on the Wednesday before the end of the fortnight to which a pay period applies i.e. three days in advance. • The Payroll cut-off for processing is 12noon on the first Thursday of the fortnightly pay period i.e. the sixth day of the fourteen day pay period. • The pay date is being changed to improve the efficiency of the administration and accuracy of each pay. • The current arrangements originated at a time when: – ACU was smaller (now nearly four times larger), – remuneration and employment arrangements were simpler, and – the regulatory and compliance environment were simpler. Why change the pay cycle? (cont.) • The current pay cycle arrangements do not allow sufficient time for processing and querying of changes affecting salaries within a pay period. • Over or underpayments are more likely to be made – consequences include: – inconvenience and frustration for staff - repayment of overpayments or delay in payment – time consuming and administratively cumbersome to correct for University Payroll staff – undermining of the integrity of legal requirements for statutory payments, and internal and external reporting. Why change the pay cycle? (cont.) • Proposed arrangements provide University Payroll staff with more time to process and query changes that occur within the pay period. • Outcome: Improved: – accuracy, – communication with ACU staff and third parties (e.g. UniSuper, Centrelink, Child Support Agency, etc), – data and reporting integrity, and – compliance. The Proposal • The change to the fortnightly pay cycle will be achieved by moving the pay date back by one week in November 2014 as a one off occurrence. • Normal pay on 22 October 2014. • Next pay is three weeks later on 12 November 2014 (instead of 5 November) for work completed: – up to Fri 7 November for continuing, fixed-term and sessional staff – before Payroll cut-off of noon Thurs 6 November 2014 for casual staff. • Every pay after 12 November 2014 continues to be fortnightly. Next pay day - 26 November 2014 for work completed up to 21 November 2014 (20 November for casual staff). Assistance for staff • Annual leave loading: for all staff entitled to it, annual leave loading paid will be paid early, on 5 November 2014. Normally paid in December. • Cash out of annual leave and long service leave: eligible staff may apply to cash out leave, with payments being made on 5 November 2014. • Confidential helpline: facilitate individual arrangements to avoid financial difficulty or hardship. Cash out of leave arrangements Eligible staff can apply to cash out annual leave and/or long service leave under the following circumstances: • Annual leave: a staff member with an annual leave entitlement in excess of forty (40) days may cash out up to twenty (20) days of annual leave (pro-rata for part-time) - guaranteed approval of cashed out annual leave paid on 5 November 2014 • Long service leave: staff eligible for long service leave may cash out long service leave provided they: – retain a minimum balance of nine (9) weeks - guaranteed approval of cashed out long service leave paid on 5 November 2014 – take a period of long service leave equivalent to the period of long service leave cashed out. Subject to associated period of long service leave being approved. The Proposal Diagram Continuing, Fixed-term and Sessional Staff October Mon Tues 6 13 20 7 14 21 27 28 November Mon Tues 3 4 10 11 17 24 18 25 Wed 1 8 15 22 Thur 2 9 16 23 Fri 3 10 17 24 29 30 31 Wed Thur 5 12 6 19 26 Fri Sat 4 11 18 25 Sun 5 12 19 26 7 Sat 1 8 Sun 2 9 13 14 15 16 20 27 21 28 22 29 23 30 Fortnightly pay period under existing arrangements Annual leave loading paid Cash out of annual or long service leave paid Fortnightly pay period aligned to changed pay day (three weeks between pay days) Fortnightly pay periods after change to the pay day Pay days – colour aligns with the colour of the pay period Date of payment for strategies to mitigate financial difficulty or hardship The Proposal Diagram Casual Staff October Mon Tues 6 13 20 7 14 21 27 28 November Mon Tues 3 10 4 11 17 24 18 25 Wed 1 8 15 22 Thur 2 9 16 23 29 30 Wed Thur 5 12 19 26 Fri 3 10 17 24 Sat 4 11 18 25 Sun 5 12 19 26 Sun 2 9 16 23 30 31 Fri 6 13 7 14 Sat 1 8 15 20 27 21 28 22 29 Payroll processing cut-off dates – colour aligns with colour of pay day Pay days – colour aligns with the colour of the Payroll processing cut-off date Existing arrangements apply to Payroll processing cut-off date and pay days in these colours Changed dates for Payroll processing cut-off and pay day in this colour (three weeks between pay days). Next Payroll processing cut-off and pay day after the change in this colour Next steps • Consultation process concludes 14 July • A final decision on how and when the pay cycle will change will be made by early August. There will be a change to the fortnightly pay cycle during the life of the ACU Staff Enterprise Agreement 2013-2017 • Staff will be informed of approved arrangements initially via an all staff email (a comprehensive communication strategy will be implemented) • Staff should start to think about the financial arrangements that could be impacted e.g. regular direct debits or payments (Checklist is being developed to assist staff with this) Proposed Process – Consultation and Implementation June/July Staff consultation Review feedback on the Pay Date Change Proposal August/September October Final decision in relation to changing the Pay Date by early Aug Reminders to staff Communication with staff (including website providing FAQs, Preparation Checklist, etc) Last pay under current pay cycle arrangements on 22 Oct Cashed out leave forms to be lodged during October (details TBA) November Annual leave loading & cashed out leave paid on 5 Nov to eligible staff 12 Nov – new pay date Return to fortnightly pay dates – next pay due on 26 Nov How to participate in the consultation process? Ask questions, identify issues and/or make suggestions: • at an Information Session (notes are being taken); and/or • by sending an email to [email protected] by 14 July 2014.