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News Bulletin : ADA News Bulletin August 2010
15 AUGUST 2010 Recommend the STRONGEST pain reliever available without a prescription. * *Based on codeine content per dose Q. The pre-modern award wage which applied to my employee is higher than the new modern award wage rate. When calculating the transitional wage for this employee the result is higher than the pre-modern award wage. Is this correct? A. Yes. In situations where the modern award wage is lower than the wage within the pre-modern award the transitional wage can still result in an increase. An increase will only occur when the difference between the current modern award rate (as at 1 July 2010) and the pre-modern award rate is less than the relevant percentage of the transitional amount (this year, the relevant percentage is 80%). For example, if the difference between the wages is $40 and 80% of the transitional amount is $50, the transitional wage will increase by $10. Q. The minimum transitional wage which I have calculated is lower than the pre-modern award wage that I previously paid to my staff. Can I reduce the minimum wages for my employees to this transitional amount? A. The implementation of modern awards is not intended to result in the reduction of an employee's take home pay. If an employee suffers a reduction in their take home pay as a result of the transitional provisions, the employee or their union may apply to Fair Work Australia for a take home pay order. This order can require an employer to retain existing rates of pay. In making such an order Fair Work Australia will have regard to an employees pay on an overall basis. That is, they will take into account that some entitlements will decrease whilst others increase during the five year transitional period. In your situation, we recommend maintaining your employees' pre-modern award wages. This is because by maintaining this wage rate it is unlikely that you will become subject to a take home pay order. Q. I am establishing a new business. Do I need to calculate transitional wages for my employees or can I just pay the new modern award wages? A. The transitional provisions within the Health Professionals and Support Services Award 2010 apply to employers and employees in the national system that are covered by the Award. This includes employers who establish their business after the commencement of the modern award (i.e., 1 January 2010). The effect of this is that when working the minimum wages which apply to your employees, it will be necessary for you to use the transitional calculator. To do this, you should refer to the pre- modern award entitlements that would have applied to you and your employees if your organization had commenced trading prior to 1 January 2010. Before acting on any of the information in the above article, please contact the friendly team at the ADA HR Advisory Service on: Phone: 1300 ADA INC (1300 232 462) Fax: 02 9993 9709 Email: firstname.lastname@example.org The ADA HR Advisory Service is available from 8:30 am -- 5:00 pm AEST Monday to Friday. 'The answer could be just a phone call away' HR matters
ADA News Bulletin September 2010