Home News Latest News
Latest Articles
2010 Annual Wage Review Decision Handed Down

Fair Work Australia has announced the decision in relation to the 2010 Annual Wage Review.

The decision increases the federal minimum wage by $26.00 per week or $0.68 cents per hour for permanent employees. The Decision also adds a similar amount to each of the wage scales contained in Modern Awards. The decision adds $0.85 per hour to most adult casual rates of pay.

The Decision has effect from the first full pay period on or after 1 July 2010.

This is the first decision under the Fair Work Act 2009 and is definitely at the higher end of expectations . The Decision must be considered in conjunction with the transitional or phasing in provisions that also commence in relation to Modern Awards for the first time on 1 July 2010.

The transitional arrangements between the old and the Modern Award system are extremely complex and the Guidance Note issued  two days ago by the Fair Work Ombudsman is already subject to a number of applications to Fair Work Australia to clarify certain elements. This means that it is likely that businesses will not know with any certainty what the arrangements are when they commence on 1 July 2010.

Whilst this is a very undesirable situation to be in, it has been the case for many employers since the new laws commenced because Fair Work Australia has been finding its way as it goes along since July 2009 when the Fair Work Act 2009 commenced.

The decision flows on the increase proportionally to junior employees and also employees not covered by awards. However, some differences apply to the casual loading for non-award employees because this has been phased in in accordance with the phasing provisions in the Modern Awards.

 

 

Each business that is operating under the award system needs to review their circumstances on an individual basis because, the phasing rules will have a different effect depending on which award they are covered by and what their current remuneration arrangements are. There is no one size fits all outcome under these new rules.


For businesses that are operating under existing approved Enterprise Agreements, you need to review your Agreement to ensure that the minimum wages in your agreement are at least at the level provided for in the Modern Award.

 

 

 

 
 
Fair Work Information Statement – Out Now

From 1 January 2010, all employers covered by the national workplace relations system have an obligation to give each new employee a Fair Work Information Statement (Information Statement) before, or as soon as possible after, the employee commences employment.


The right for new employees to receive the Fair Work Information Statement is one (1) of ten (10) minimum standards in the National Employment Standards (NES) that apply to employment of employees from 1 January 2010.

 

Together with modern awards, the NES provides a new safety net for employees covered by the national workplace relations system.

 

Any employer who does not give the Information Statement to a new employee is contravening the terms of the NES for which significant penalties apply.

 
 
Unfair Dismissal PDF Print E-mail

Businesses of all sizes are now subject to unfair dismissal laws.  Previously, businesses with less that 100 staff were exempt, however this is no longer the case.  There are two streams of unfair dismissal rules and which one covers an employers business will depend on the staffing levels at the business.
Read More
 
Fair Pay Commission Declines to Increase Minimum Wage PDF Print E-mail

The Fair Pay Commission has not increased the Federal Minimum Wage in its most recent decision.  This means that the current Federal Minimum Wage and all the Pay Scales covering most employees remain at their current levels.   The decision, which will be the Fair Pay Commission’s last before it is replaced by Fair Work Australia on 1 January 2010, provides some relief for employers in a difficult period.

Under the Fair Work Act 2009, the annual wage decision will now take effect from 1 July each year.
 
New Superannuation Ruling PDF Print E-mail

The Australian Taxation Office has issued a new ruling that explains how superannuation entitlements are to be calculated. The ruling has provided some relief for employers because in a draft ruling that was issued several months ago, regular overtime was to be included in the earnings base for the purpose of calculating superannuation.
Read more...