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Modern Awards |
So far, 93 Modern Awards have been produced by the AIRC. The job is to be finished by 1 January 2010. This means you will have simpler Awards and they will be easier to access. |
I am concerned that your employees will discover breaches of Modern Awards, and even worse, breaches of the old awards. As claims can go back 6 years, your expenses and balance sheet could take a big hit, especially if word spreads among your staff and there is a backlog of award breaches. |
The other risk is that directors, CEOs, CFO's and HR Managers are in the firing line as well. I was at a recent workplace law seminar where the head of their legal department warned that their policy is to prosecute individual directors and officers, as well as employer companies. With penalties up to $6,600 for an individuals and $33,000 for companies, all directors, CEOs, CFOs and HR manager should cover this personal risk. |
What you need to do |
- Complete a Compliance Review with Modern Award conditions before:
January 2010 - for Non-monetary conditions
July 2010 - for Monetary conditions.
- Work out the applicable Modern Award.
- Compare rates in the Modern Award with current award conditions - adjust Non-monetary conditions by 1 January 2010, Monetary conditions by 1 July 2010.
- Plan for any staged increases over the next 5 years.
- Get payroll ready for the changes.
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| Peter McNamara can help you navigate the new Modern Award system and reduce your risk of claims by employees and prosecution by FWA for breach of the new Modern Awards. |
How do you find the right Modern Award? |
The AIRC has a list of the new modern awards at: http://www.airc.gov.au/awardmod/fullbench/industries/allstages.cfm |
First look for your industry. If you cannot find an industry that covers your staff, look for an occupation. |
| However, in some industries you will need to look at more than one award. For example, manufacturers will need to look beyond the Manufacturing Associated Industries and Occupations Award to the separate occupational awards for clerical, driving and warehouse staff. |
Transitional Arrangements |
The new Awards start on 1 January 2010. However, transitional provisions smooth out the winners and losers, so rates will go up over the next 5 years. |
Although the Modern Awards start on 1 January 2010, there is a 6 month delay before minimum pay changes start on 1 July 2010. After 1 July 2010 pay increases are staged in 20% increments. On 1 July 2010, there will be a 20% increase in any monetary increase or decrease, with 20% increments annually so that 100% of pay increases are effective by 1 July 2014. |
The new minimum rates do not affect above award employee entitlements. |
Employees whose entitlements reduce on 1 January 2010 can apply to Fair Work Australia for a "take home pay order". This will maintain their pay rates up until the modern award rate catches up with their current pay rate. |
