Employing People

This information is provided as guidance online and Australian Sailing recommend you seek your own specific legal advice

What to consider when employing and engaging workers in Australia

There are different ways to engage or employ workers. The following information provides some guidance on what needs to be considered when employing or engaging workers in Australia.
There are a number of different ways to engage or employ workers. The following provide some guidance

1. What types of employment or payment categories are there and what does each mean?

Permanent Employee	The role requires ongoing provision of Accrues leave Covered by the Fairwork Act and generally an Award Workcover applies Superannuation and Tax paid by Employer
Casual	Is paid a 25% loading in lieu of leave Covered by the Fair Work Act and an Award Workcover applies Superannuation and tax paid by employer
Fixed Term employee	Accrues Leave Covered by the Fair work Act and an Award Workcover applies Has a fixed end date of employment, typically linked to a project or funding Superannuation and tax paid by employer
Contractor	Independent Contractor responsible for their own insurances, leave, superannuation and tax. GST may apply Paid an hourly rate or fee for services Supplies own tools and equipment
Volunteer	Provides services on a regular or as needed basis without payment Expenses may be reimbursed May get a discount on fees Not generally covered by workers compensation insurance
Hobby	‘Furtherance of an activity done as a private recreational pursuit or hobby’ A coach or referee may be paid a nominal amount per hour or per undertaking The amount is not taxed. See links below for further information Tax is not paid or claimed on hobby payments
Honorarium	An honorary reward for voluntary services OR A fee for professional services voluntarily performed Used rarely and usually in return for one off services

Difference between a business and a hobby | business.gov.au
Statement by a supplier not quoting an ABN | Australian Taxation Office (ato.gov.au)
Honorariums | Australian Taxation Office (ato.gov.au)

2. Decision tool Permanent / Casual / Fixed Term / Contractor / Hobby / Honorarium

>> INSERT DECISION TOOL <<

3. What award covers our employees?

Most workers in Australia are covered by a Modern Award. The Fair Work descriptions can be found here

Awards will apply to an organisation rather than an organisation choosing which award it wants to apply to its workers. More than one award may apply to an organisation and it’s workers.
An organisation may have more than one award which covers its employees.

After careful consideration the following information is supplied for the purpose of determining which Award may apply to Australian Sailing and it’s members:

a. The Sporting Organisations Award 2020

This award will not apply to Clubs and Associations.

It may apply to employees of Australian Sailing itself. It covers ‘State or Territory sporting organisation means the governing body for a sport at a State or Territory level or the organisation conducting an elite level State or Territory competition for a sport or,in the case of a sport where governing bodies are split between metropolitan and non-metropolitan areas,the governing body for the non-metropolitan areas (e.g. country).’

Whilst this award has classifications for Coaches by definition these rates will only be applicable for coaches/roles employed at a State or National level.

b. The Registered and Licensed Club Award 2020

This award may apply where there is a registered or licensed club that is operated in conjunction with the organisation.

This award has prescriptive classifications for General Managers, Administrative Staff, Bar and gaming staff, Kitchen staff and Workers employed in and around the club.

Definition of clubs industry: ‘For the purposes of clause 4 club industry means the performance of all or any work in or in connection with or for clubs.’

‘Club means any club which is registered and licensed under the provisions of relevant State or Commonwealth Statutes (Liquor and/or Gaming Acts, Associations’Incorporation Acts or Corporations Acts) and which is established and operates on a not-for-profit basis for the benefit of members and the community’.

c. Clerks Private Sector Award 2010

This award covers employers in the private sector throughout Australia with respect to their employees engaged wholly or principally in clerical work, including administrative duties of a clerical nature, and to those employees.

This award may cover administrative, finance employees engaged by a club.

d. Miscellaneous Award 2020

This award may apply where no other Award applies.

The rates/classifications included in this Award may apply to Coaches and Instructors who are employees.

4. What should we pay our workers?

Awards provide guidance and minimum pay rates for employees. It is also relevant to consider the current market conditions at the time of hiring or designing a position including supply of and demand for labour or the type of role that is designed. Some of the ways to determine market value:

- Review similar roles on Job sites like Seek, Sportspeople etc
- Access salary guides from agencies like Hayes Recruitment or Mercer
- Speaking with other clubs or associations
- Engaging a HR or Business Consultant to evaluate the role and provide advice and guidance on remuneration

5. How are coaches/instructors engaged?

Determining how to engage and/or pay Coaches and Instructors depends largely on what the Organisation/Club can afford and the way the Coach or Instructor operates.

The Sporting Organisations Award includes definitions and pay rates that are applicable for coaches. However the Sporting Organisations Award only covers organisations or bodies that are operating at a State or National level. Click here to view the coverage definition Sporting Organisations Award [MA000082] - Fair Work Ombudsman. There are no other Modern awards that contain pay classifications for clear guidelines for coaches at a Club level.

Typically Coaches and Instructors at Association and Club level are engaged on an ad hoc basis and paid a hobby payment.

If the Coach or Instructor is engaged to do more than just coach or train eg, to develop the training program, plan, coordinate and administer events and competitions etc, then they may be employed as a permanent employee on a full or part time basis.

The level of pay applicable for the coach will be determined by the nature of the work to be undertaken. As an employee the Coach/Instructor will accrue leave and be paid at least the National minimum wage or a higher amount that the organisation or Club can afford.

Coach or Instructor Examples	How does the engagement work?
Max has been sailing with our club since he was a junior. Now an accomplished sailor, Max is attending university, works part time at the local hotel and provides instruction to our junior sailors every Saturday and Sunday for a few hours.	Option 1. Max volunteers his services and any out of pocket expenses he incurs are reimbursed by the club each fortnight. Option 2. Max is paid a nominal amount per hour in recognition of his contribution to Sailing. The payment is considered a Hobby payment and is not taxed.
A couple of years on, Max has now finished his Sports Management degree at university and the club engages him on a regular basis during the week for about 25 hours to develop a more structured coaching and instructing program and assessment process. He still occasionally directly provides instruction to the juniors on the weekend but mostly provides guidance and checks in with the other Weekend Instructors.	Option 1: Max is employed under a Permanent Part time contract for 25 hours per week. He is paid an hourly rate in accordance with the Miscellaneous Award Level 2. His Weekend hours are considered to be undertaken as a volunteer. Option 2. Max is employed as a Permanent Part time with a salaried contract that is inclusive of all hours worked during the week and the weekend. He is paid a salary that is significantly higher than the Miscellaneous Award Level 2. His Weekend hours are considered to be incorporated into his salary.
After another 12 months Max has implemented the Coaching and Instructing program and it is hugely successful. The Club’s membership has almost tripled. Max is now working Full time for the Club and he manages a pool of Instructors and Coaches.	Option 1. Max is employed as a Permanent Full time employee under a salaried contract that is inclusive of all hours worked. His salary is significantly higher than the rate for a Level 4 of the Miscellaneous award. The pool of instructors and Coaches are engaged as either; volunteers, paid as a hobby or casuals of the Club depending on their experience, competence and the amount of hours they contribute.
After another 12 months Max is being asked to speak at networking events and act as an advisor to other Clubs particularly around his Coaching and Instructor program and assessment tool. Max and the original Club now contract out his services to other Clubs.	Option 1. Because Max is now on the road more than he is working for the Club they have reached an agreement where the old contract has terminated and now Max subcontracts to the Club. The Club markets and onsells Max’s services to other clubs and each party receives a percentage of the fee.