Did your employee awards change 1 January?
See below if your award is one of them
On January 1, 2025, Australia’s employment landscape underwent a transformative shift! And yes, it will cost more for businesses.
These updates, championed by the Fair Work Commission (FWC), are designed to improve workplace standards.
Here’s the scoop on what’s now here:
What Changed?
Limited Duration for Introductory Classifications: Introductory classifications will now apply only for a short period, typically no longer than six months. This phase is designed to cover initial induction, training, or the acquisition of basic skills required for the role.
Guaranteed Minimum Pay Rates: Beyond the introductory period, all classifications will receive at least the National Minimum Wage, ensuring fair compensation for employees as they progress in their roles.
Effective Dates
These changes kick in for most awards on January 1, 2025, with the Horticulture Award and Pastoral Award set to follow on April 1, 2025.
Which Awards Are Affected?
The updates impact a wide range of industries. Here are some notable examples:
Airline Ground Staff Award
Amusement Award
Animal and Veterinary Services Award
Australian Government Award
Dry Cleaning and Laundry Award
Fitness Award
Food and Beverage Manufacturing Award
Funeral Award
Graphic Arts and Printing Award
Joinery Award
Live Performance Award
Manufacturing Award
Marine Tourism and Charter Vessels Award
Meat Award
Pest Control Award
Port Authorities Award
Textile, Clothing, Footwear and Associated Industries Award
Timber Award
Travelling Shows Award
Vehicle Award
For the full list, visit the Fair Work Ombudsman’s official announcement.
Aged Care Sector Overhaul
In response to the Aged Care Work Value Case, several awards in the aged care sector are receiving a much-needed update. Changes will impact the:
Aged Care Award
Social, Community, Home Care and Disability Services (SCHADS) Award
Nurses Award
What’s New?
Updated Classification Structures: New definitions and classifications better reflect the roles and responsibilities of direct care employees.
Increased Minimum Pay Rates: Employees in eligible classifications will see higher pay rates, varying depending on their specific roles.
Revised Award Coverage: Nursing assistants in aged care settings, previously covered under the Nurses Award, will now fall under either the Aged Care Award or the SCHADS Award, depending on their duties and employer industry.
These changes will take effect from the first full pay period on or after January 1, 2025.
Why Does This Matter?
Businesses must review their payroll systems and employment contracts to ensure compliance with the new rates and classifications.
Budgets need to be revised for the increased costs from these changes
Enterprise agreements must align with the updated standards to avoid discrepancies.
Looking Ahead: Higher Education Changes
The FWC is also reviewing fixed-term contract provisions in higher education awards. Universities and related entities should keep an eye on these developments as they unfold in 2025.
Stay Informed
The Fair Work Ombudsman’s website is your go-to source for the latest updates on these changes. Subscribe to their newsletter or consult with employment law experts to stay ahead of the curve.
Conclusion
Modern award changes are a pivotal step in promoting fairness and transparency across Australia’s workforce. As January 2025 approaches, employers should take proactive steps to understand and adapt to these updates.
Relevant External URLs
FAQ
Which industries are most affected by these changes?
Sectors like aged care, food manufacturing, fitness, and textiles will see significant adjustments to pay and job classifications.
What’s the purpose of these changes?
How can Australian businesses prepare?
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