27 October 2020
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Following the Fair Work Commission’s (FWC) Annual Wage Review decision on Friday 19 June 2020 (see our earlier article here), the modern award minimum wages for Group 2 modern awards will increase by 1.75 per cent from 1 November 2020.
A list of the Group 2 modern awards is set out at the end of this article.
The FWC determinations varying the rates of pay under the modern awards in Groups 1 to 3 can be accessed here.
The increased modern award minimum wage will also have a flow-on effect to all loadings, penalties, allowances and overtime payments under the modern awards that are calculated by reference to the modern award minimum wage.
Steps for employers to take now
Employers covered by a Group 2 modern award should review their current pay arrangements to ensure that, from the first full pay period on or after 1 November 2020, any employees covered by a Group 2 modern award are paid in accordance with the new minimum rates of pay in respect of the employee’s classification under the modern award. This also includes casual loading and other loadings, penalties, allowances or overtime which are calculated by reference to the modern award minimum rates of pay.
Employers should also review any ‘all-inclusive’ pay arrangements for employees covered by a Group 2 modern award. If an employee receives an all-inclusive salary, the increase to the minimum rate may affect the lawfulness of that all-inclusive salary if it is no longer adequate to compensate relevant employees for their award entitlements by reference to their actual hours of work.
Group 2 modern awards
Authors: Louise Rumble & Natasha Jones
Disclaimer
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.
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