Federal minimum wage clause varied

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Federal minimum wage clause varied

The Federal Commission has agreed to vary the Federal Minimum Wage Clause following a joint employer/union application to remedy the original Clause’s unintended potential to substantially increase the rates of pay for adult apprentices, trainees, and employees working on supported wages.

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The Federal Commission has agreed to vary the Federal Minimum Wage Clause following a joint employer/union application to remedy the original Clause’s unintended potential to substantially increase the rates of pay for adult apprentices, trainees, and employees working on supported wages.

The background to this matter was discussed in HR Link, Issue 063/97, 14 May 1997.

The following is the new form of the clause agreed to by a Full Bench of the Commission (Victorian Employers’ Chamber of Commerce and Industry v Textile, Clothing and Footwear Union of Australia re Textile Industry Award 1994, Print P1741):

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"Federal Minimum Wage

"1. The Federal Minimum Wage

"No employee shall be paid less than the federal minimum wage.

"2. Amount of Federal Adult Minimum Wage

"(a) The federal minimum wage for full-time adult employees not covered by subclause (4) [special categories clause], is $359.40 per week.

"(b) Adults employed under a supported wage clause shall continue to be entitled to receive the wage rate determined under that clause. Provided that such employees shall not be paid less than the amount determined by applying the percentage in the supported wage clause applicable to the employee concerned to the amount of the minimum wage specified in subclause 2(a).

"(c) Adults employed as part-time or casual employees shall continue to be entitled to receive the wage rate determined under the casual and part-time clauses of the award. Provided that such employees shall not be paid less than pro rata the minimum wage specified in subclause 2(a) according to the number of hours worked.

"3. How the Federal Minimum Wage Applies to Juniors

"(a) The wage rates provided for juniors by this award continue to apply unless the amount determined under subclause 3(b) is greater.

"(b) The federal minimum wage for an employee to whom a junior rate of pay applies is determined by applying the percentage in the junior wage rates clause applicable to the employee concerned to the relevant amount in subclause (2).

"4. Application of Minimum Wage to Special Categories of Employee

"(a) Due to the existing applicable award wage rates being greater than the relevant proportionate federal minimum wage, this clause has no application to employees undertaking a National Training Wage Traineeship, an Australian Traineeship, a Career Start Traineeship, a Jobskills placement or an apprenticeship.

"[(b) Leave reserved for other special categories]

"[NOTE: Where the award does not provide for one of the categories of employment in this subclause, the provisions relating to the category will need to be deleted.]

"5. Application of Federal Minimum Wage to Award Rates Calculation

"The federal minimum wage:

"(a) applies to all work in ordinary hours;

"(b) applies to the calculation of overtime and all other penalty rates, superannuation, payments during sick leave, long service leave and annual leave, and for all other purposes of this award;

"(c) is inclusive of the $10 per week arbitrated safety net adjustment provided by the Safety Net Review - Wages April 1997 decision and all previous safety net and national wage adjustments.

"Operative date: the date a Federal Minimum Wage clause in inserted into the Award."

 

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