Dec 9th, 2024
The Fair Work Commission has announced key changes to introductory classifications and minimum pay rates for adult employees in certain modern awards. These updates, effective from 1 January 2025 for most awards, aim to establish a fair and relevant minimum safety net for employees by addressing the initial compensation and classification structure for new entrants to the workforce.
Introductory or entry-level classifications in modern awards are designed to allow new employees to gain the necessary skills and experience to progress within a defined timeframe. These classifications can pay below the National Minimum Wage of $24.10 per hour, and typically cover:
- Induction periods,
- Time spent undergoing training, and
- Time needed to develop basic skills and experience for the role.
Under the new rules, employees in introductory classifications will have a maximum period to remain at these levels, after which they must progress. The maximum duration will vary across affected awards, but is capped at six months.
Additionally, progression may still occur sooner if the employee demonstrates sufficient competence before the maximum period ends.
For employers, these changes necessitate a review of current practices to ensure compliance by the time changes come into effect. Employers are encouraged to familiarise themselves with the classifications within their applicable awards to ensure they manage any necessary transitions smoothly.
These changes represent a significant step towards strengthening the protection and progression of employees in the workforce, ensuring that more employees receive the safety net of the national minimum wage.
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