Review of C14 and C13 rates in modern awards

The Fair Work Commission (FWC) is currently undertaking a Review of modern awards containing a rate of pay at the ‘C14’ level (currently $891.50 per week or $23.46 per hour) or below the ‘C13’ level (currently $915.90 per week or $24.10 per hour) which applies other than on a transitional basis.

Background

The FWC has issued several statements in regards to the Review, with the most recent being on 30 August 2024. In April 2024 the Full Bench confirmed its provisional view that the following principles should guide the completion of the Review:

1. The lowest classification rate in any modern award applicable to ongoing employment should be at least the C13 rate.
2. Any classification rate in a modern award which is below the C13 rate (including but not limited to the C14 rate) must be an entry-level rate which operates only for a limited period and provides a clear transition to the next classification rate in the award (which must not be less than the C13 rate).
3. The transition period for the purpose of 2 above should not exceed six months.[1]

Draft determinations have been prepared for 47 awards that are proposed to be varied to give effect to the provisional views and include the:

• Animal Care and Veterinary Services Award 2020
• Aquaculture Industry Award 2020
• Children’s Services Award 2010
• Fitness Industry Award 2020
• Food, Beverage and Tobacco Manufacturing Award 2020
• Graphic Arts, Printing and Publishing Award 2020
• Horticulture Award 2020
• Joinery and Building Trades Award 2020
• Live Performance Award 2020
• Manufacturing and Associated Industries and Occupations Award 2020
• Pastoral Award 2020
• Timber Industry Award 2020
• Vehicle Repair, Services and Retail Award 2020
• Wine Industry Award 2020

The draft determinations can be found on the FWC website.[2]

What next?

Interested parties are invited to make submissions, by 4:00 pm (AEST) on Friday 27 September 2024, on the provisional views in the April 2024 Decision and on the draft determinations published on 30 August 2024.

The operative date proposed in the draft determinations is 1 January 2025.

Employers with employees covered by any of the 47 named awards should consider the draft determinations and the proposed effective date and determine whether they want to make a submission to the Review.  If implemented in accordance with the provisional views, this will have financial implications for employers who will be required to pay in accordance with the revised classification rate, including those employers with enterprise agreements with rates that must meet at least the minimum base rates in any Award.

EMA Legal is able to provide assistance to employers with any questions that may arise from this process.

[1] See Review of C14 and C13 rates in modern awards [2024] FWCFB 213 and [2024] FWCFB 359.

[2] See https://www.fwc.gov.au/hearings-decisions/major-cases/review-certain-c14-rates-modern-awards at ‘Determinations’.