The rate at which you must pay your employees is set out in your employee’s relevant Award.
But did you know that these rates of pay increase on a regular basis?
Award rates increase on a regular basis. You need to be aware of these increases so you can pay your employees correctly
As such, it is important that you regularly review your employees Award and keep up to date with any changes.
Particularly, be sure to check for an updated pay rate on 1 July each year.
Modern awards were introduced on 1 January 2010, with a five-year transition period granted by the Australian Industrial Relations Commission (AIRC) to help employers and employees adapt. During this time, pay rates and certain conditions were phased in gradually, with most arrangements concluding by 1 July 2014. However, the Fair Work Commission (FWC) has since made additional rulings, extending transitional provisions for some awards. Employers and employees should consult their specific modern award for details, as there may be state-based differences in these transitional arrangements.
See more on Modern Awards
Fair Work Office targets employers to ensure compliance
The Fair Work Office conducts targeted campaigns to ensure that employers are complying with their duties to their staff.
Employers who have been found to have underpaid staff will be ordered to back pay the amounts due, and may be made to pay hefty penalties. See this recent case.
The campaigns are sometimes targeted at industries known to employ young, or other vulnerable classes of workers, such as non-english speaking overseas workers.
The Fair Work Office will also conduct an audit of an employer in response to a complaint, or feedback received from an industry association, government minister or other source.
Tools and resources to help you pay employees
Ignorance is no defence when it comes to underpaying your staff.
The Fair Work website provides a host of online tools and resources aimed at helping Australian businesses comply with their responsibilities to staff.
Pay rates calculator – The calculator tool helps you to determine the base pay and penalty rate that applies to employees under a Modern Award.
See Other Fair Work Tools and Resources
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