What are award wages?
When you hear about award wages it refers to the minimum wage entitlements and conditions for certain types of employment as set out by the Fair Work Commission. Modern awards came into affect in 2010 and there are more than 100 industry or occupation awards, encompassing a wide range of employment types relating to work in Australia.
What kind of things do they set out?
Not only do award wages outline the minimum pay rates for any applicable industry and job type, but it also sets out things such as hours of work, leave entitlements, allowances, shift work and overtime etc.
How do you know what award you need?
The Fair Work website contains all the information you need to easily find out what award applies to you or your employee. For example, a full time landscaper who classified as a level 4 and working on private residences would be covered under the Gardening and Landscaping Services Award (MA000101). With no applicable allowances they would be entitled to a minimum hourly pay rate of $24.76 (as of publishing date). This would of course change if for example, the landscaper advanced and should now be classified as level 5, had an applicable tool allowance or was an apprentice etc.
It is very important to check the award rate carefully to avoid underpayment and to remember that the minimum conditions in modern awards are legal requirements. To help keep you updated, Fair Work allows you to subscribe to email updates to notify you of changes to pay and awards.
Other considerations
It is important to routinely review your award wages to make sure that they are accurate and correct. An employee who has moved up a level in regards to their award level may require changes to their wage rate and by identifying this in a timely fashion you minimise risk of underpayment and ensures your employee feels appreciated.
Even employees who are paid above award wages should have their employment details formalised in writing, particularly if they are being paid above award rates in lieu of of entitlements such as overtime.
If an employee is not covered by an award or agreement then they should be deemed as award or agreement free. In such cases, these employees might have an employment contract, however they are still entitled to at least the national minimum wage and national employment standards.
Need help understanding award wages? Feel free to contact us today.
Disclaimer
This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided having regard to your objectives, financial situation and needs.
