New Year Changes to Entry-Level Classifications in Modern Awards: What Employers Need to Know
On 19 November 2024, an expert panel from the Fair Work Commission issued its decision [2024] FWCFB 438, resulting in significant changes to most modern awards containing introductory or entry-level job classifications. These classifications, sometimes referred to as ‘C14’, ‘introductory’, or ‘Level 1’, are typically temporary but often lacked a clear maximum time limit. This has now changed, and employers need to be aware of the new rules.
Changes to Introductory Classifications
From 1 January 2025, most modern awards will limit the duration of introductory classifications. These classifications apply during the initial stages of a job, such as:
- The induction period
- Time spent undertaking training
- The necessary period to gain basic skills and experience required for the job.
The maximum duration for these introductory classifications will vary depending on the award but will never exceed six months.
Employers must ensure that all employees who are not classified as introductory are paid at least the National Minimum Wage or the relevant award rate, whichever is higher.
Important Dates for Affected Awards
The changes to 45 of the awards will come into effect on 1 January 2025, with the following awards affected:
- 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
Additionally, the Horticulture Award 2020 and Pastoral Award 2020 will take effect from 1 April 2025.
What Employers Should Do Now
As of 1 January 2025, it’s crucial for employers to:
- Check if their relevant award is impacted and review the applicable pay rates for each award.
- Obtain an updated version of the relevant award to familiarise themselves with the new rules regarding introductory classifications.
- Ensure that their payroll systems and employee classification rules are updated to reflect the changes.
Get Expert Advice
If you’re unsure how these changes will affect your business or the pay rates applicable to your employees, don’t hesitate to reach out to us at NB Employment Law for expert advice. Book a complimentary consultation with our team to ensure your business remains compliant and prepared for the new year.