16 May Aged Care Award 2010 – Transitional Arrangements & Wage Schedules
Aged Care Award 2010 – Transitional Arrangements & Wage Schedules
Important notice to employers regarding casual loadings and weekend work.
AGED CARE AWARD 2010 – TRANSITIONAL ARRANGEMENTS & WAGES SCHEDULES
A Wages Schedule was provided to employers in July 2010 that contained:
1. Increases arising from the Fair Work Australia (FWA) Annual Wage Review of July 2010, providing for an increase of $26.00 per week, and
2. Changes relating to the phasing-in of wage rates, loadings and penalties as a result of the Transitional Arrangements under the Aged Care Award 2010.
The Fair Work Ombudsman (FWO) published, on 23 March 2011, an interpretative guide for employers setting out its opinion as to how the transitional arrangements under the Aged Care Award 2010 should be applied.
Schedule A – Transitional Provisions of the Aged Care Award 2010 cover the following entitlements:
- Minimum wage rates;
- Casual loadings;
- Saturday, Sunday, public holiday, evening or other penalties; and
- Shift allowances/penalties.
As a result of the 2010 Wage Review, and the commencement of the Transitional Arrangements on 1 July 2010, CEA Human Resources & Consulting sought legal support relating to the phasing-in and the quantum of penalties and loadings. The loadings and penalties contained in the July 2010 Wages Schedule reflected that legal support.
It is important to note that the Transitional Arrangements are subject to various considerations. There is no legally binding decision from Fair Work Australia or a court which sets out definitive rules about how to calculate specific Award entitlements under the Transitional Arrangements.
FAIR WORK OMBUDSMAN (FWO) INTERPRETATIVE GUIDE
One of the matters addressed by the FWO’s interpretative guide published in March 2011 is how the Transitional Arrangements affect casual loadings for weekend work.
While the Aged Care Award 2010 states that a casual loading is not payable for Saturday and Sunday work, the FWO’s opinion is that this change did not take effect immediately on 1 July 2010. Rather, the FWO considers that both the casual loading and weekend penalties remain payable for weekend work, but that the casual loading should be phased out over 5 years under the Transitional Arrangements.
The FWO’s opinion is different to the support CEA Human Resources & Consulting received last year.
2010 WAGE SCHEDULE
As explained above, the FWO’s opinion is not legally binding and the Transitional Provisions are subject to various considerations.
However, to maintain a consistency in application and minimise confusion, CEA Human Resources & Consulting has decided to withdraw its 2010 Wages Schedule, issued July 2010, and to issue a further Wages
Schedule dated May 2011 (copy attached), which varies weekend penalties for casual employees, in line with the FWO’s considerations.
ACTION BY EMPLOYERS
It is recommended that employers review their current arrangements, in line with the FWO’s interpretative guide.
Employers, who have an Enterprise Agreement that covers employees under the Aged Care Award 2010, and in which loadings and penalties are contained, must continue to apply the provisions contained in the Enterprise Agreement.
Any queries relating to this matter can be directed to Ted Davis
PDF Document click here