Award compliance - fact & fiction

Some facts
Did you know that there are more than 100 awards and the chances are the employees in your organisation are covered by one or more of them?
Specific award coverage is dependent upon the industry that your business falls within and the types of occupations within your business. There are industry and occupation awards. Some businesses have multiple awards that apply to them and it's not always that easy figuring out which ones they are!

Along with the National Employment Standards (NES), awards are legal documents that must be complied with. Awards outline minimum pay rates and conditions of employment. Some of what's covered in the awards includes pay rates, hours of work, overtime & penalty rates, allowances, leave & public holidays, consultation requirements, classification levels, types of employment, flexibility arrangements, breaks and superannuation.

Fiction
Many employers think that if they are paying above-award rates or an annual salary that awards do not apply. In most cases they still do. It is important to note that awards don't only cover pay rates, you need to ensure compliance with conditions of employment like breaks, consultation requirements and leave. You also have to have a detailed understanding of all the overtime, penalty and allowance requirements applicable to your employees to ensure that the above-award or annual salary being paid covers all the entitlements. Some awards also have annualised wage arrangements with very specific requirements. Are you able to provide evidence that your above-award rate or annual salary covers all entitlements due to your employees?

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*This blog contains general information and should not be relied on as advice.