Modern Award Coverage

Today, we’re talking about modern award coverage. I’m here to give you the 101 on how to determine the right award for your employees. It is an area that can cause confusion amongst even the nerdiest of us IR-Nerds, so strap-in!

Let’s start by talking about an award coverage issue close to our hearts. A common misnomer is that any diesel mechanic is covered by the Vehicle Repair, Services and Retail Award. An easy mistake to make if you assume that because mechanics repair vehicles (ie. buses) they must therefore be covered by a modern award that deals with vehicle repair. But you’d be wrong. Mechanics can fall under multiple awards, and in our case it’s the Manufacturing and Associated Industries and Occupations Award, 2020.

Wait. So how did we get there? Well, here’s some modern award basics.

Modern Awards can generally be classified as:

1. Industry Awards – these apply to all employees in a particular industry, as defined in the scope of the award. For example, the Passenger Vehicle Transport Industry Award covers employees in the passenger vehicle transportation industry.
2. Occupational Awards – these apply to the type of work performed, ie. occupation, if not covered by an industry award. For example, the Nurses Award 2020 covers the occupational of being a Nurse; or
3. Both Industry and Occupational Awards – these contain provisions that cover both industry and occupational employees. For example, the Manufacturing and Associated Industries and Occupations Award, 2020 covers both the manufacturing industry and specific occupations.

You should always check award coverage provisions to ensure that you are paying your employees correctly.

It’s timely to remind you that Enterprise Agreements can operate to the exclusion of the relevant award. BUT some also incorporate awards into the Agreement. Check the wording of your EA carefully.

Even if you’re paying over and above the award (we know how hard mechanics are to come by!), you should still make sure you’re BOOT-ing against the correct modern award.

💡Handy hints!💡

Handy hints to check you’re using the correct modern award:

1. Look for an industry award first, then occupational awards (the clue is in the name!).
2. Start by checking what the modern award says about coverage – TIP!⚠️ this is always in Clause 4 of every modern award
3. Check carefully for exclusions
4. Review classifications – they can be in the coverage section and / or specific schedules.
5. If you can’t find coverage and a role is covered by neither industry nor occupational award, then you should by default see if the position can be classified under the Miscellaneous Award.

If you’re still unsure, I am a huge fan of the Fair Work Ombudsman Library. This is a great resource, especially when dealing with the issue of award coverage.

For example, it has this handy definition:

Award coverage for a mechanic in the road transport industry
The Manufacturing Award covers qualified mechanics working in the road transport industry.

Finally, I am more than happy to have a chat with you to discuss potential award coverage issues. Do not hesitate to reach out.

Thank you for your attentiveness – I will be testing you!