On 19 June 2020 the Fair Work Commission (FWC) released its 2020 wage decision. The decision increased all Modern Awards by 1.75%, however for the first time, the implementation of the decision was staggered over 3 implementation dates.
The final group of Modern Awards were varied to include the increase of 1.75% to all pay rates from 1 February 2021. This means that now all Modern Awards have been varied to incorporate the increase.
As a reminder, the first group of Modern Award that were varied from 1 July 2020, were those primarily representing frontline healthcare, social assistance workers, teachers and childcare workers as well as other essential services. This was followed on 1 November 2020, by the Modern Awards which could be described as primarily those in the construction, manufacturing and other industries.
The final group of Modern Awards to be varied from 1 February were those that were identified as covering employees in industries most negatively impacted by Covid 19, being Modern Awards covering accommodation/food services, arts/recreation, aviation, retail and tourism.
It’s imperative that all employers ensure they are paying their employees at the correct rates and that they have incorporated the above Modern Award increases into their employee wages as appropriate. If an employer has inadvertently missed one of the above increases it is imperative that this be rectified as soon as possible to minimise any obligation for back payment to employees.
If you require assistance or want to check you are paying the correct rates, please contact our HR Consulting division via the form below or 07 3218 3919.
Author: Cheryl-Anne Laird
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