From 1 January 2025, significant updates to modern awards will take effect, impacting businesses across various industries. These changes, introduced by the Fair Work Commission (FWC), aim to ensure fair treatment of employees at the lowest classification levels. As an employer, it’s crucial to stay informed and ensure compliance to avoid any disruptions.
What’s Changing?
The changes fall into three main categories:
- Time Limits in Lowest Classification
- For some awards, new rules will limit how long employees can remain at the lowest classification level.
- Pay Rate Increases
- Pay rates for employees at the lowest classification levels will rise under several awards.
- Combination of New Rules and Pay Adjustments
- Some awards include both new time limits and increased pay rates.
These updates reflect the FWC’s commitment to fair pay and career progression, ensuring employees can transition through classification levels within a reasonable timeframe.
Affected Modern Awards
This decision impacts a wide range of industries. Below is a snapshot of some of the affected awards:
- Cement, Lime and Quarrying Award
- Horticulture Award
- Textile, Clothing, Footwear and Associated Industries Award
- Animal and Veterinary Services Award
- Electrical, Electronic and Communications Contracting Award
- Fitness Award
- Joinery Award
- (Full list available on the Fair Work Commission website.)
What Should Employers Do?
To prepare for these changes, we recommend the following:
- Review the applicable awards: Determine if any of the listed awards apply to your business.
- Update payroll systems: Ensure any required pay adjustments are reflected accurately.
- Evaluate job classifications: Assess whether current employees at the lowest classification levels are due for reclassification.
- Communicate with employees: Proactively inform your team about the updates and how they might be affected.
Stay Ahead of Compliance
Navigating award changes can feel overwhelming, but staying informed and proactive is key to avoiding compliance issues. For tailored advice or assistance with understanding how these changes apply to your business, don’t hesitate to get in touch with us.
For a detailed breakdown of these changes, visit the Fair Work Commission’s official page: Changes to entry-level classifications in awards.
Let Us Help You Navigate These Changes
Don’t leave compliance to chance. Reach out to us for expert guidance on how these award changes will impact your business. Our team is ready to provide tailored advice and help you implement the necessary updates.
Contact us today to ensure your business is prepared for 2025.
