A franchisor now gets fined when one of their franchisees underpays staff, even when the franchisor had nothing to do with it. Payday Super kicks in 1 July and means super contributions must clear within 7 days of every pay run, not quarterly.

The salary buffer rule that most employers rely on to stay compliant has changed, and one overtime-heavy week can now trigger an underpayment claim that costs hundreds of dollars per employee.

In this interview, Damian Gooden from ER Strategies (an FCA Platinum Partner) walks through the industrial relations changes that will hit franchisors and franchisees over the next 12 months.

You will hear exactly what the Vulnerable Workers Act requires every franchisor to have in place, broken into four specific elements.

You will hear how the junior wages ruling phases in between December 2026 and July 2029, and what that does to business models built on lower-cost 18 to 20 year olds.

You will hear the salary offset case study with real dollar figures, showing how a $55,000 salary that was compliant under the old rule can now leave an employer $404 short in a single pay cycle.

Damien's number one takeaway for every franchise network: time sheets. For every employee, without exception, including salaried staff.

That is the evidence that protects you when Fair Work comes knocking.

If you run a franchise or employ staff under an Australian award, this is the compliance update you need before the next quarter starts.

Need help? Contact https://erstrategies.com.au/ or https://hrcentral.com.au/

Timestamps
00:00 - Introducing Damien Gooden from ER Strategies
01:49 - Payday Super: what changes on 1 July
03:42 - Fines for non-compliance and who is most at risk
04:28 - Junior wages: pay rates for 18 to 20 year olds are changing
06:09 - The Vulnerable Workers Act explained
07:22 - The four things franchisors must have in place
10:14 - What a 20 to 40 franchisee network should actually be doing
13:30 - What individual franchisees need to do to stay compliant
15:02 - Timesheets: why every employer needs them, no exceptions
16:15 - The salary offset case study: how the overtime buffer rule changed
20:12 - The real risk of underpaying salaried staff per pay cycle
24:46 - Record keeping as your core compliance strategy
25:22 - What to do if Fair Work comes knocking
26:21 - How ER Strategies works with Jim's Bookkeeping

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