The Retail Industry Award is a set of minimum employment standards that applies to all employees working in the retail industry in Australia. It covers a range of matters, including pay rates, work hours, and leave entitlements.
In March 2022, a new version of the Retail Industry Award was released, which will come into effect from the first full pay period on or after 1 September 2022.
The following guide aims to provide employers with a comprehensive understanding of the updated retail award pay rates for better compliance and improved productivity.
Changes to Pay Rates
The new award introduces changes to the minimum pay rates for employees. The minimum hourly rates have been increased, and the classification structure has been simplified. The award now has two main classifications: Level 1 and Level 2. Employers must ensure their employees are paid the correct minimum hourly rate based on their classification.
Changes to Penalty Rates
Penalty rates are an additional amount paid to employees for working outside of normal hours, such as weekends and public holidays. The award maintains the existing penalty rates for Saturday and Sunday work but reduces the penalty rates for public holidays. Employers must ensure employees are paid the correct penalty rates for hours worked outside of normal hours.
Changes to Roster Requirements
The award introduces changes to the minimum hours that employees can work. The award now requires employers to roster employees for at least two hours per shift, with a maximum of 10 hours per day. Employers must ensure their employees are rostered for the correct number of hours and do not exceed the maximum daily hours.
Changes to Leave Entitlements
The award introduces changes to the leave entitlements for employees. The award now provides for full-time employees five weeks of annual leave per year and 1/12 of this entitlement for each completed month of service for part-time employees. Employers also need to ensure that their employees are provided with the correct amount of annual leave based on their employment status.
Changes to Overtime Entitlements
The award introduces changes to overtime entitlements for employees. The award now provides time and a half for the first two hours of overtime and double time for any additional hours worked. Employers also need to ensure that their employees are paid the correct overtime rates for hours worked beyond their normal working hours.
Changes to Break Entitlements
The award introduces changes to the break entitlements for employees. The award now requires employers to provide a 30-minute unpaid meal break for employees who work more than five hours and a 20-minute paid rest break for employees who work more than four hours. Employers must ensure their employees are provided with the correct break entitlements based on the hours worked.
Compliance and Enforcement
Employers must ensure that they comply with the award. Failure to comply with the award can result in penalties and fines. The Fair Work Ombudsman is responsible for enforcing compliance with the award and can conduct audits and investigations to ensure that employers meet their obligations. Employers should seek professional advice if unsure about their obligations under the new award.
Conclusion
In conclusion, the changes to the Retail Industry Award regarding retail award pay rates provide an opportunity to improve workplace practices and foster a culture of fairness and transparency. By embracing these changes and ensuring compliance with the new requirements, employers can build a more engaged and motivated workforce, leading to greater productivity and success in the retail industry.
