When transitioning to modern awards is not an issue

Q&A

When transitioning to modern awards is not an issue

The 2010 Annual Wage Review (effective from the beginning of July) was accompanied by the first stage of the transitional process — moving all relevant industrial instruments to full modern award coverage by 2014. In some cases, there is no need to go through this transitional process because the modern award rates have come into effect by force of the 2010 wage review.

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The 2010 Annual Wage Review (effective from the beginning of July) was accompanied by the first stage of the transitional process — moving all relevant industrial instruments to full modern award coverage by 2014. In some cases, there is no need to go through this transitional process because the modern award rates have come into effect by force of the 2010 wage review.
 
This question was recently received by WorkplaceInfo.
 
We are currently auditing the wage rates of our employees with the introduction of the modern award wage rates from 1 July 2010 and, in most instances, the wage rates under the NAPSA are higher than the relevant modern award rate.
 
We have managed to calculate the relevant transitional amount for each employee as required under the transitional provisions clause of the award.
 
However, we are unsure about the application of the recent Annual Wage Review (AWR) increase of $26.00 per week on the modern award rates of pay.
 
The majority of the transitional amounts are less than the AWR increase.
 
Are we required to pass on both the transitional amount and the AWR increase or is there some other calculation involved?
 
If an employee’s old rate is higher than the modern award rate and the transitional amount is $26.00 or less, then the transitional amount can be fully absorbed.
 
The employee’s minimum from the first pay period commencing on or after 1 July 2010 is the modern award rate for his/her classification.
 
The employee’s classification rate is now fully phased into the modern award and the transitional provisions will no longer apply to those employees whose transitional amount is $26 or less.
 
There may still be questions relating to transitioning casual loadings if casual employees are is issue.
 
Source: Paul Munro, IR Consultant.
 
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