Every year, the Fair Work Commission reviews the National Minimum Wage and minimum rates of pay in Modern Awards to decide if they should be increased. This is the Annual Wage Review (AWR).
The AWR usually happens between March and June, with . Any changes generally come into effect on the first full period from 1 July.
The Annual Wage Review is an activity that takes place at the same time each year, yet it often catches employers off guard. So let’s get ahead of the game and get prepared for The Annual Wage Review today!
There are three actions you can take today to prepare for the outcome of The Annual Wage Review.
1- Review Employment Contracts
It is anticipated that The Commission will look to increase wages from the 1st of July. This provides a good opportunity to review existing employment contracts to ensure they are compliant and appropriate for the current work arrangements. Things to consider;- Is the employee covered by a Modern Award?
- The employment status of the employee (casual, part time or full time)?
- Are you paying above Award rates and if so, do you have a relevant set-off clause?
2- Review Wage Arrangements
Most employees are covered by a Modern Award. It’s important to understand which Modern Award applies to your employees and the conditions associated with that Award (keeping in mind that your employees may fall under different Awards).- Which classification level on the Award is your employee covered by?
- Is your employee paid an hourly rate or an annualised wage arrangement (previously known as an annualised salary)?
