Uniform, vehicle and travel entitlements
As an employer, it might be confusing to work out which allowances you are obligated to pay your employees. Fair Work recently provided information on uniform, vehicle and travel entitlements according to the different awards and agreements. We recommend you familiarise yourself with the appropriate allowances your employees are entitled to.
Depending on the award or agreement your employees are covered by, you may be required to pay uniform allowances or pay for employees’ special clothing. Special clothing includes uniforms and personal protective equipment (PPE).
Vehicle & Travel
The awards or agreements your employees are covered by, and the type of employees you have, will determine whether vehicle or travel allowances are required. When using their own vehicle for work purposes, some employees may be entitled to a vehicle allowance. Under certain conditions, employers may be required to pay for an employees taxi fare from work to home if they start or finish after a certain time, for example after 10pm. Shift workers may not be entitled to this same allowance, due to the nature of their work schedules. Travel expenses can include reasonable meal and accommodation costs and are also outlined in the award or agreement covering employees.
We recommend making yourself aware of the entitlements and conditions set out in the relevant awards or agreements covering employees. It is essential to follow the appropriate human resources policies and procedures when it comes to your employment contracts, to avoid the cost of back-paying employees.