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Changes to modern award laws

Every four years the Fair Work Commission reviews Australia’s modern awards. The Fair Work Commission has now confirmed that, as a result of its most recent review, it’s making significant changes to many of the modern awards. The Fair Work Ombudsman has published information about these changes. Modern awards that have been varied can be identified by the year 2020 in their title.

From 4 February 2020, the first changes apply to 31 modern awards. And, from 1 March 2020, new annualised salary arrangements will be included in some modern award categories. These changes (three different types of clauses have been drafted) will be added to or replace existing annualised salary clauses in the three modern award categories. Not every modern award has a specific annual salary arrangement, so they won’t all be affected. From 1 March 2020, employers who currently pay annualised salaries to employees that are covered by the relevant modern awards will need to comply with new notification, record-keeping reconciliation processes. At this stage, these clauses will only apply to full-time employees.

Not-for-profits should be aware of these changes as failure to comply may have legal, financial and reputational consequences.

To view the modern awards that have been amended, click here.

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