Once you’ve identified the correct base rate to pay your employees, you’ll also need to ensure that any penalty rates are applied, and relevant allowances are paid. These are often areas where businesses make mistakes that lead to them underpaying their employees, so it is crucial for businesses to understand what they need to pay their employees and when they need to pay them each rate.
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What is the Annual Wage Review?
The Annual Wage Review is a process carried out by the Fair Work Commission in which a review is provided on the national minimum wage as well as the pay rates under modern awards. After the review is completed, adjustments are then made to reflect the findings of the Review.
One of the most common errors we’ve identified that leads to underpayments are businesses incorrectly classifying employees, whether that be choosing the wrong award, or employee classification within it. Ensuring that your employees are being paid under the correct award is the first step to being payroll compliant. Failing to be compliant at these first steps means all other payroll compliance measures in place within your business will be redundant.
A number of security companies have recently contacted ER Strategies asking us to assist them in tailoring an enterprise agreement to meet the needs of their business.
From 1 May 2021, Junior rates for classifications level 4 to level 8 under the General Retail Industry Award 2020 will no longer apply, although junior rates continue to apply to junior employees classified in levels 1 to 3. Junior employees under the Award classified as level 4 and above under the award must now be paid at least the adult rate of pay for their relevant classification.
Back in February 2020, the Fair Work Commission (FWC) decided to insert detailed annualised wage arrangement provisions into 16 modern Awards (e.g. Banking Finance, Clerks, Pharmacy etc).
The Fair Work Commission (FWC) Full Bench has decided to remove the higher-level junior rates of pay under the General Retail Industry Award 2020 (GRIA). This will mean that the adult rate will apply to all juniors at levels 4 to 8 inclusive.
The Annual Wage Review 2019-20 listed 3 operative dates in which the 1.75% wage increase would take effect, with the operative dates categorised by industries who were least affected to most affected by the pandemic.
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