Award interpretation is the process all Australian businesses need to undertake in order to determine the minimal legal pay rates and conditions for your workforce as determined by Fair Work Australia.
The purpose of Fair Work Australia’s modern award is to provide a safety net for employees based on age, industry and occupation.
The modern award encompasses a range of entitlements including Base wage: the legal minimum remuneration that employees receive for their work within ordinary hours.
Penalties and overtime: the higher rates of pay awarded to employees for working outside ordinary hours. This includes weekends, public holidays, or late nights.
Allowances: compensation to employees for costs incurred due to their job. This often includes a meal allowance, uniform allowance, accommodation allowance and more.
The challenge for most Australian business is that, Fair Work Australia has over 122 different awards covering a range of different industries.
If you’re in doubt as to which award your business falls under, RosterElf highly recommends using Fair Work Australia’s “Find My Award” tool below.
Whilst the Fair Work award system in Australia is complex, if you fail to comply or make a mistake, the penalties can be big. Fines of up to $51,000 from Fair Work Australia can apply plus also a huge backpay charge. So it is definitely worth spending the time to get awards in your business compliant.