Recently, the Fair Work Commission introduced changes to 18 modern awards. These award changes came into effect on 1 March 2020, so it is important to be proactive about instigating these changes. As a result, there are new obligations for employers when paying salaries under these provisions.
Being aware with the changes and updates to the awards your business uses is paramount to making sure you are compliant when it comes to the staff in your workplace.
Key Things to Note About the Changes
The biggest, and most notable, change is that it will be compulsory for employers to keep a record of the starting and finishing times of work. Furthermore, it is a requirement to record unpaid breaks. It should also be noted, salaried staff under these awards who earn up to $148,700 are covered.
Moreover, Employees must receive documentation outlining the maximum number of overtime or penalty hours they are allowed to work included within the annual salary in each pay period.
In addition to this, employers must pay the employee for any hours worked over the maximum allowed within a pay period.
Also, all employers must perform an annual reconciliation. When doing so, the employer calculates the amount an employee would have received if they were paid on an hourly basis in accordance with the award. Afterwards, employers have 14 days to pay any deficit.
Who is Affected?
Only full time employees, paid an annual wage under one of the above awards, are affected by these changes. However, not included in this are casual and part time employees. This is because they are unable to have annual wage agreements under these awards.
The updated awards are:
- Banking, Finance and Insurance Award
- Broadcasting Award
- Clerks Award
- Contract Call Centres Award
- Horticulture Award
- Hydrocarbons Industry (Upstream) Award
- Legal Award
- Local Government Award
- Manufacturing Award
- Mining Award
- Oil Refining and Manufacturing Award
- Pastoral Award
- Pharmacy Award
- Rail Award
- Salt Award
- Telecommunications Award
- Water Award
- Wool Award
Further to this, the Fair Work Commission has also announced its intention to update further awards in the future but have yet to confirm any dates.