Resources: E-updates

June 2018 Special E-update

E-updates
|

Annual Wage Review Decision 2018

National minimum wage increase (award/agreement-free employees), Minimum wages in modern awards, What does the annual wage review decision mean for employers?

Each financial year, the Fair Work Commission (FWC)’s Expert Panel is required to conduct and complete a review of the national minimum wage (NMW) and minimum wages in modern awards as part of the Annual Wage Review (AWR).

On 1 June 2018 the Expert Panel announced the outcome of the AWR and below is a summary of the outcome.

National minimum wage increase (award/agreement-free employees)
From the first full pay period on or after 1 July 2018, the NMW will increase by 3.5% (an increase of $24.30 per week).

Accordingly, from the first full pay period on or after 1 July 2018, the NMW will be $719.20 per week or $18.93 per hour.

Consistent with previous AWR decisions, the Expert Panel confirmed that for the special NMW for award/agreement-free junior employees, the junior wage percentage scale in the Miscellaneous Award 2010 (Miscellaneous Award) would be used.

Similarly, for award/agreement-free apprentices and trainees and employees to whom a training arrangement applies, the Expert Panel decided that the special NMW will be set as per the Miscellaneous Award.

For employees with a disability, the Expert Panel held that there should be two special NMWs. For employees with disability whose productivity is not affected, wages will be as per an assessment under the supported wage system.

The Expert Panel confirmed that the casual loading of 25% will continue to apply for award/agreement-free employees.

Minimum wages in modern awards
The Expert Panel also determined to increase the minimum wages in modern awards.

From the first full pay period on or after 1 July 2018, the minimum wages in modern awards will increase by 3.5%, with weekly wages to be rounded to the nearest 10 cents.

The increase will also apply to junior employees, apprentices and trainees and award-covered piece work employees.

What does the annual wage review decision mean for employers?
Employers are required to ensure that employees are at least being paid the minimum wages or rates of pay set by the AWR decision come the first full pay period after 1 July 2018.

Under the FW Act, employers must not contravene a term of the NMW Order or penalties could apply.

Employers should now take the time to review how the wage increases handed down by the Expert Panel will impact the rates paid to employees under the industrial instruments and contracts of employment applicable in their workplace, and prepare for the changes to come into effect from 1 July 2018.

Employers who engage employees under enterprise agreements must ensure that those employees are at least receiving the base rate of pay prescribed by the applicable classification in the relevant modern award – regardless of the rate in the enterprise agreement itself.

To ensure compliance, all employers with enterprise agreements should now compare the new increased rate in the applicable modern award against the enterprise agreement rates.

Employers should also conduct regular reviews of their employees’ wages and any obligations in an applicable industrial instrument or contract to ensure that employees are being adequately compensated.

Need a laugh...

Q:   What did the pencil sharpener say to the pencil?
A:   Stop going in circles and get to the point.

My roommate gets angry when I steal the kitchen utensils.
But it's a whisk I'm willing to take.

Should you require any further information or assistance, please contact our Managing Director Athena Koelmeyer on (02) 9256 7500 or via email on sydney@workplacelaw.com.au.

Information provided in this update is not legal advice and should not be relied upon as such. Workplace Law does not accept liability for any loss or damage arising from reliance on the content of this update, or from links on this website to any external website.  Where applicable, liability is limited by a scheme approved under Professional Standards Legislation.

 

 

No items found.

Similar articles

No items found.

No items found.

Key Takeaways from our Webinar

Managing Workplace Behaviour: "You Get What You Tolerate"

In our August webinar, our Managing Director and Principal, Athena Koelmeyer, discussed the challenges faced by modern employers when managing workplace behaviour. In that webinar, Athena examined a number of recent unfair dismissal decisions of the Fair Work Commission which provide some good guidance for employers.

Read more...

Workplace Relations Review

Cases and Legislation August 2020

‍NEWS ALERT - Paid Pandemic Leave introduced into Health Sector Awards Over the course of 2020, the Full Bench of the Fair Work Commission (the Full Bench) has heard and determined applications to vary modern awards to deal with the COVID-19 pandemic.

Read more...

Workplace Relations Review

Cases and Legislation July 2020

Adverse action – the workplace right to make a complaint about employment, the reverse onus on the employer, Unfair dismissal – the minimum employment period, summary dismissal and other factors to be considered

Read more...

Let's talk

please contact our directors to discuss how ouR expertise can help your business.

We're here to help

Contact Us
Let Workplace Law become your partner in Workplace Relations.

Signup to receive the latest industry updates with commentary from the Workplace Law team direct to you inbox.