HRHenry
20-06-2013, 12:41 PM
Good afternoon, I work for a recruitment company that supplies numerous staff to company X. My predecessor set up the deal with them and we have been supplying them staff for many years at level y.
Recently we've been made aware that because of certain duties our staff perform at company X, our staff should be paid at level Y.2. I can't find any documentation from Company X that directs us to pay at level Y, it's just been that way for many years. Company X is certainly aware that we pay level Y, as we put that on our invoices.
To complicate matters further, the casual hourly rate that we currently pay (level Y) represents an above award payment, in line with Company X's current Enterprise Agreement. As we're not party to that agreement I initially thought that we would have no obligation to backpay our staff - as the hourly rate of Y is well above the award rate for either level Y or level Y.2. However, there is a clause in Company X's EA which states that employees of labour hire agencies are to be paid at the same rate as if they'd been a direct employee of company X.
So, are we obligated to backpay our existing and past staff who worked there?
Thanks
Henry
Recently we've been made aware that because of certain duties our staff perform at company X, our staff should be paid at level Y.2. I can't find any documentation from Company X that directs us to pay at level Y, it's just been that way for many years. Company X is certainly aware that we pay level Y, as we put that on our invoices.
To complicate matters further, the casual hourly rate that we currently pay (level Y) represents an above award payment, in line with Company X's current Enterprise Agreement. As we're not party to that agreement I initially thought that we would have no obligation to backpay our staff - as the hourly rate of Y is well above the award rate for either level Y or level Y.2. However, there is a clause in Company X's EA which states that employees of labour hire agencies are to be paid at the same rate as if they'd been a direct employee of company X.
So, are we obligated to backpay our existing and past staff who worked there?
Thanks
Henry