The Fair Work Commission has recently introduced significant changes to the Nurses Award that will directly affect aged care employees, including nursing assistants, registered nurses, and enrolled nurses. These changes, part of the broader Work Value Case – Nurses and Midwives, are set to take effect at various times in 2025. Employers must be aware of these updates to ensure they remain compliant and avoid potential legal or financial risks.
Effective Dates of Changes
The changes for aged care support workers will come into effect from the first full pay period on or after 1 January 2025. These workers will no longer be covered under the Nurses Award if they provide personal care services to older individuals in residential or home care settings. Instead, they will now fall under the Aged Care Award or the Social, Community, Home Care and Disability Services Award.
For registered and enrolled nurses, the changes will take effect from the first full pay period on or after 1 March 2025. These adjustments will impact how nurses are classified and paid within the sector.
Adjustments to Minimum Pay Rates and Classification
The classification structure for registered nurses has undergone significant modification. One notable change is the removal of annual pay progression for Levels 1, 2, and 3. Additionally, the grades for Levels 4 and 5 have been eliminated, meaning that increments will only apply to Registered Nurse – Aged Care Levels 1 and 2. Another change is that newly qualified registered nurses working in aged care will now start at a single pay rate, rather than differing rates based on their qualifications.
Enrolled nurses working in aged care will also see changes, as they will now be paid a single, higher minimum rate, with previous pay points removed. Furthermore, some enrolled nurses may be required to supervise other direct care employees, which is a shift from their previous responsibilities.
Transition Arrangements
A new Schedule F – Transition Arrangement will be implemented from 1 March 2025 to guide employees through the shift to the updated classifications. Employees who were earning a higher pay rate as of 28 February 2025 will retain that rate. For example, a Registered Nurse Level 2 at Pay Point 3, like Mark, will be classified as a Registered Nurse Level 2 (First 3 years of employment at this level) moving forward. On the other hand, a Registered Nurse Level 4, like Lisa, will retain her classification but continue to receive the previous higher pay rate. Enrolled nurses, like David, will move to the new single pay rate but will also take on supervisory responsibilities for personal care workers.
What Employers Need to Do
Employers need to take a proactive approach to these changes by reviewing the revised classification structures and ensuring they are prepared for the upcoming adjustments. It is essential to use the Fair Work Commission’s Pay and Conditions Tool to verify the updated pay rates, which will come into effect from 1 March 2025, and download the Nurses Award Pay Guide for reference.
To comply with the new regulations, employers must also update their payroll systems to reflect the new minimum pay rates and adjust employee contracts accordingly, ensuring that the affected employees are notified of their changes in classification and pay.
Additionally, since some enrolled nurses will now be required to supervise other direct care employees, it is important that employers provide adequate training and support for those who will take on supervisory roles. This ensures that employees are well-prepared for their new responsibilities and are fully compliant with the updated award.
Stay Informed and Seek Legal Advice
As these changes come into effect, it is crucial for employers to stay informed about any further updates from the Fair Work Commission. If employers are unsure about how these changes affect their organisation or need assistance interpreting the award, they should seek legal advice from experts in the field.
Stay Compliant with NB Employment Law
Understanding these award modifications and ensuring compliance is essential for employers in the aged care sector. At NB Employment Law, we specialise in providing employment law solutions that protect businesses and ensure they stay compliant.
Our team can assist with award interpretation, payroll audits, and tailored legal advice to ensure your organisation is fully prepared for the upcoming changes. If you need help navigating these changes, contact us today for expert guidance on employment law and award compliance.