Minimum Pay Rates To Increase By 1.75%
THE FAIR WORK COMMISSION (FWC) HAS HANDED DOWN ITS DECISION ON MINIMUM PAY, PROVIDING AN INCREASE OF 1.75% TO THE NATIONAL MINIMUM WAGE AND MINIMUM AWARD RATES. THE INCREASE TAKES EFFECT ON DIFFERENT DATES FOR DIFFERENT AWARDS.
FOR EMPLOYERS ADOPTING ABOVE-AWARD PAYMENT STRUCTURES (ANNUALISED SALARY OR WAGE ARRANGEMENTS), DURING THE LAST FEW MONTHS, A NUMBER OF MODERN AWARDS HAVE BEEN UPDATED BY THE FWC TO INCLUDE NEW ANNUALISED WAGE ARRANGEMENTS. IN WORKPAC PTY LTD V ROSSATO [2020] FCAFC 84, THE FULL FEDERAL COURT HAS EXAMINED THE ISSUE OF SET OFF IN RELATION TO CASUAL EMPLOYMENT WHICH IS ALSO RELEVANT IN RELATION TO ANNUALISED SALARY ARRANGEMENTS OPERATING OUTSIDE OF THE ANNUALISED WAGE CLAUSES IN A MODERN AWARD.
ISSUE
The FWC has granted a 1.75% increase to the national minimum wage and the minimum pay rates under modern awards. The weekly minimum wage will be $753.80 per week, or $19.84 per hour. The national minimum wage will apply to any employee who is not covered by a modern award. Given the current economic environment, the increase will take effect on different dates for different awards.
MINIMUM INCREASE IMPLEMENTATION DATES
- 1 July 2020 – National minimum wage and Group 1 Awards. This group includes:
- Frontline health care workers and social assistance workers;
- Teachers and child care workers; and
- Other essential services.
- 1 November 2020 – Group 2 Awards. This group includes:
- Construction;
- Manufacturing; and
- A range of other industries.
- 1 February 2021 – Group 3 Awards. This group includes:
- Accommodation and food services;
- Arts and recreation services;
- Aviation;
- Retail trade; and
- Tourism.
GROUP 1 AWARDS
The FWC states that the modern awards in Group 1 “cover industries which have been less affected by the pandemic than those covered in Groups 2 and 3, and includes modern awards applying to ‘frontline’ health workers, teachers and childcare workers and employees engaged in other essential services, who have continued working throughout the pandemic, to keep the community safe; to protect the vulnerable and those at risk; and to keep the economy functioning. The variation determinations in respect of these awards will come into operation on 1 July 2020”.
The Group 1 Awards includes the following:
- Aboriginal Community Controlled Health Services Award 2020; • Aged Care Award 2010; • Ambulance and Patient Transport Industry Award 2020; • Banking, Finance and Insurance Award 2020; • Cemetery Industry Award 2020; • Children’s Services Award 2010; • Cleaning Services Award 2020; • Corrections and Detention (Private Sector) Award 2020; • Educational Services (Schools) General Staff Award 2020; • Educational Services (Teachers) Award 2010; • Electrical Power Industry Award 2020; • Fire Fighting Industry Award 2020; • Funeral Industry Award 2010; • Gas Industry Award 2020; • Health Professionals and Support Services Award 2020; • Medical Practitioners Award 2020; • Nurses Award 2010; • Pharmacy Industry Award 2020; • Social, Community, Home Care and Disability Services Industry Award 2010; • State Government Agencies Award 2020; and • Water Industry Award 2020.
GROUP 2 AWARDS
The FWC states that the modern awards in Group 2 “cover industry sectors adversely impacted by the pandemic, but not to the same extent as the sectors covered by the Group 3 awards…We are satisfied that there are exceptional circumstances justifying the variation determinations in respect of these modern awards coming into operation on 1 November 2020.”
The Group 2 Awards includes the following:
- Aluminium Industry Award 2020; • Animal Care and Veterinary Services Award 2020; • Aquaculture Industry Award 2020; • Architects Award 2020; • Asphalt Industry Award 2020; • Australian Government Industry Award 2016; • Black Coal Mining Industry Award 2010; • Book Industry Award 2020; • Broadcasting, Recorded Entertainment and Cinemas Award 2010;145 • Building and Construction General On-site Award 2010; • Business Equipment Award 2020; • Car Parking Award 2020; • Cement, Lime and Quarrying Award 2020; • Clerks—Private Sector Award 2020; • Coal Export Terminals Award 2020; • Concrete Products Award 2020; • Contract Call Centres Award 2020; • Cotton Ginning Award 2020; • Dredging Industry Award 2020; • Educational Services (Post-Secondary Education) Award 2020; • Electrical, Electronic and Communications Contracting Award 2010; • Food, Beverage and Tobacco Manufacturing Award 2010; • Gardening and Landscaping Services Award 2020; • Graphic Arts, Printing and Publishing Award 2010; • Higher Education Industry-Academic Staff-Award 2020; • Higher Education Industry-General Staff-Award 2020; • Horticulture Award 2010; • Hydrocarbons Field Geologists Award 2020; • Hydrocarbons Industry (Upstream) Award 2020; • Joinery and Building Trades Award 2010; • Journalists Published Media Award 2020; • Labour Market Assistance Industry Award 2020; • Legal Services Award 2020; • Local Government Industry Award 2020; • Manufacturing and Associated Industries and Occupations Award 2020; • Marine Towage Award 2020; • Maritime Offshore Oil and Gas Award 2020; • Market and Social Research Award 2020; • Meat Industry Award 2020; • Mining Industry Award 2020; • Miscellaneous Award 2020; • Mobile Crane Hiring Award 2010; • Oil Refining and Manufacturing Award 2020; • Passenger Vehicle Transportation Award 2020; • Pastoral Award 2010; • Pest Control Industry Award 2020; • Pharmaceutical Industry Award 2010; • Plumbing and Fire Sprinklers Award 2010; • Port Authorities Award 2020; • Ports, Harbours and Enclosed Water Vessels Award 2020; • Poultry Processing Award 2020; • Premixed Concrete Award 2020; • Professional Diving Industry (Industrial) Award 2020; • Professional Employees Award 2020; • Rail Industry Award 2020; • Real Estate Industry Award 2020; • Road Transport (Long Distance Operations) Award 2020; • Road Transport and Distribution Award 2020; • Salt Industry Award 2010; • Seafood Processing Award 2020; • Seagoing Industry Award 2020; • Security Services Industry Award 2020; • Silviculture Award 2020; • Stevedoring Industry Award 2020; • Storage Services and Wholesale Award 2020; • Sugar Industry Award 2020; • Supported Employment Services Award 2020; • Surveying Award 2020; • Telecommunications Services Award 2010; • Textile, Clothing, Footwear and Associated Industries Award 2010; • Timber Industry Award 2010; • Transport (Cash in Transit) Award 2020; • Waste Management Award 2020; and • Wool Storage, Sampling and Testing Award 2010.
GROUP 3 AWARDS
The FWC states that modern awards in Group 3 “cover the industry sectors which have been most adversely affected by the pandemic…We are satisfied that there are exceptional circumstances justifying the variation determinations in respect of these modern awards coming into operation on 1 February 2021”.
The Group 3 Awards includes the following:
- Air Pilots Award 2020; • Aircraft Cabin Crew Award 2020; • Airline Operations-Ground Staff award 2020; • Airport Employees Award 2020; • Alpine Resorts Award 2020; • Amusement, Events and Recreation Award 2020; • Commercial Sales Award 2020; • Dry Cleaning and Laundry Industry Award 2020; • Fast Food Industry Award 2010; • Fitness Industry Award 2010; • General Retail Industry Award 2010; • Hair and Beauty Industry Award 2010; • Horse and Greyhound Training Award 2020; • Hospitality Industry (General) Award 2020; • Live Performance Award 2010; • Mannequins and Models Award 2020 • Marine Tourism and Charter Vessels Award 2020; • Nursery Award 2020; • Professional Diving Industry (Recreational) Award 2020; • Racing Clubs Events Award 2010; • Racing Industry Ground Maintenance Award 2020; • Registered and Licensed Clubs Award 2010; • Restaurant Industry Award 2020; • Sporting Organisations Award 2020; • Travelling Shows Award 2020; and • Vehicle Repair, Services and Retail Award 2020; and Wine Industry Award 2010.
ANNUALISED SALARY AND SET OFF ARRANGEMENTS
Although the recent Full Federal Court decision in WorkPac Pty Ltd v Rossato [2020] FCAFC 84 examined the central issue of casual employment, the Court has shone a bright light on employers’ rights to rely upon set off clauses in employment contracts to discharge their obligations to employees under a modern award. Employers should ensure that set off clauses in employment contracts are sufficiently connected to the award obligations which the contractual payment is intended to be applied against. It is clear that “close regard must be had to the character of the payment on which the employer relies for the claimed set off and the purpose”. There must be a sufficient correlation and “requisite closeness” between the purpose of the payments on the one hand and the entitlements on the other.
CONTACT
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