{"id":5021,"date":"2017-06-28T09:30:58","date_gmt":"2017-06-27T23:30:58","guid":{"rendered":"https:\/\/roubler.com\/au\/?p=5021"},"modified":"2022-03-04T14:39:40","modified_gmt":"2022-03-04T03:39:40","slug":"modern-award-interpretations","status":"publish","type":"post","link":"https:\/\/roubler.com\/au\/resources\/blog\/modern-award-interpretations\/","title":{"rendered":"How to Interpret Modern Award Interpretations"},"content":{"rendered":"

The phrase \u2018award interpretations\u2019 perplexes many, and is enough to send a shiver down the spine of many hard-working professionals. Australia has a complex awards system<\/a>, which can wreak havoc on even the most experienced businesses. The fact of the matter is that ensuring every employee within your company is being paid in compliance<\/a> with current awards is very difficult \u2013 especially considering how fast-changing and multi-facetted Australia\u2019s awards structure is. As confusing as they can be to get your head around, having a solid understanding of awards and their repercussions is essential for the well-being of your business.<\/p>\n

What are \u2018modern awards\u2019?<\/h3>\n

Modern Awards are defined by the Fair Work Ombudsmen as the \u201clegal documents that outline the minimum pay rates and conditions of employment\u201d as updated in 2009. Modern awards operate on an industry and occupation level in order to provide a kind of safety net for employees. In Australia, there are 122 different awards across various industries. Companies must either comply with the relevant award, or a registered enterprise agreement. For example, if you work in a store, you\u2019re probably covered by the General Retail Industry Award 2010<\/em>, and if you work at a food chain your award is the Hospitality Industry (General)<\/em> Award 2010<\/em>.<\/p>\n

How do I interpret them correctly?<\/h3>\n

To \u2018interpret\u2019 a modern award correctly<\/a>, you essentially must comply with all the requirements of the relevant industry award as set by Fair Work. On average, there are around 30 separate clauses to each award, with additional schedules. As previously explained, the specific details of each of the 122 separate awards vary, but there are some basic requirements of each.<\/p>\n

Each award is divided into five parts. They are application and operation, consultation and dispute resolution, types of employment and termination of employment, classification and minimum wage rates, and hours of work and related matters.<\/p>\n

Employees\u2019 remuneration will change based on their age, status as casual, part-time or full-time, and depending on if they are a trainee or apprentice. Then there are changes based on time of day (evening work is often remunerated higher), penalty rates for weekends and public holidays, as well as overtime. Tax deductions and superannuation must be factored in too. Rostering<\/a> is another factor, with certain requirements for minimum and maximum shifts, gaps between shifts, and notice of shifts. Accrued, sick, annual and carer leave are also features of most awards, as are accident pay and various allowances (uniform, travel).<\/p>\n

There is a lot to cover, and often you will be dealing with a complicated mix of employees \u2013 some casual, part-time, or full-time working different hours and requiring different leave, overtime, and penalty rates. Hence, making a mistake in terms of compliance is very easy. And mistakes are happening all the time \u2013 according to the Australian Payroll Association\u2019s 2017 Payroll Benchmarking Report, Australia’s top employers make payroll errors exceeding $4.4 million each year.<\/p>\n

Costs associated with incorrect interpretations<\/h3>\n