The Fair Work Commission (FWC) has made final decisions which will affect employees classified at the lowest classification level in several modern awards.

For the vast majority of the impacted awards, the changes will take effect on 1 January 2025. It's essential employers are across their obligations.

The affected awards fall into three categories:

Group 1: New rules about how long employees can stay at the introductory level

The first group of awards is where there will be new rules about introductory levels. This will operate so that employees can only stay at the lowest classification level in the award for a maximum period of time.

This will vary from award to award, but the maximum period that an employee will be able to remain at the introductory level under any affected award will be 6 months. After this, the employee must progress to the next classification level.

For example, under the Manufacturing and Associated Industries and Occupations Award 2020 (‘Manufacturing Award’) the lowest classification is currently the “C14 – Engineering/Manufacturing Employee—Level 1” classification.

Wording will be inserted into the Manufacturing Award to say that an employee will only be able to work in this classification for a maximum of 3 months. After that they will need to be classified at the next level up, ie the “C13 – Engineering/Manufacturing Employee—Level 2” classification.

One of the consequences of these changes will mean that where an employer currently has employees who have been employed under the lowest classification level for longer than the new maximum period, they will need to be automatically re-classified at the next level up (and receive the appropriate pay rise) from 1 January 2025.

For example, if someone under the Manufacturing Award has already been at C14/Level 1 for at least 3 months as of 1 January 2025, they will need to move to C13/Level 2 on this date.

It’s therefore crucial that any employer covered by any of the awards affected by this decision understands the new maximum period that employees can be classified at the lowest classification level under their award.

Awards changing on 1 January 2025

• Airline Ground Staff Award

• Amusement Award

• Animal and Veterinary Services Award

• Australian Government Award

• Dry Cleaning and Laundry Award

• Fitness Award

• Food and Beverage Manufacturing Award

• Funeral Award

• Graphic Arts and Printing Award

• Joinery Award

• Live Performance Award

• Manufacturing Award

• Marine Tourism and Charter Vessels Award

• Meat Award

• Pest Control Award

• Port Authorities Award

• Textile, Clothing, Footwear and Associated Industries Award

• Timber Award

• Travelling Shows Award

• Vehicle Award

Awards changing on 1 April 2025

• Horticulture Award

Group 2: New rates of pay for employees at some of the lowest classification levels

The second group of awards will see an increased rate of pay for employees at some of the lowest classification levels.

For example, under the Children’s Services Award 2010, the Level 1.1 classification currently has a minimum rate of pay of $910.90 per week or $23.97 per hour.

As of the first full pay period on or after 1 January 2025, this rate will increase to $915.90 per week or $24.10 per hour.

Awards changing on 1 January 2025

• Architects Award

• Children’s Services Award

• Business Equipment Award

• Electrical, Electronic and Communications Contracting Award

Group 3: Awards with new rules about how long an employee can stay at the introductory level AND pay increases

The third group of awards contain new rules about the maximum period of time an employee can stay at the introductory level, plus pay rate increases for some of the lowest classifications.

All of these changes take effect on 1 January 2025, except for the Pastoral Award which is being amended from 1 April 2025. A list of all of the impacted awards is set out below (together with a link to the FWO’s updated pay guides).

Awards changing on 1 January 2025

• Air Pilots Award

• Aquaculture Industry Award

• Cement, Lime and Quarrying Award

• Concrete Products Award

• Cotton Ginning Award

• Rail Industry Award

• Seafood Processing Award

• Seagoing Industry Award

• Sugar Industry Award

• Wine Industry Award

• Wool Storage, Sampling and Testing Award

Awards changing on 1 April 2025

• Pastoral Award

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