You can’t have your take home pay reduced as a result of the commencement of the new Fair Work system.

Modern awards commenced on 1 January 2010, along with the new National Employment Standards. The commencement of these new entitlements is not intended to result in employees receiving a pay cut.

If you believe your take-home pay has been cut, you can apply to Fair Work Australia to make a ‘take-home pay order’.

What is a take-home pay order?

A take-home pay order can preserve your existing rates of pay while you remain in the same job. It can apply to wages and allowances, as well as incentive based payments and overtime. An order can apply to an individual or a class of employees or outworkers who are in a similar position.

A take-home pay order can be made if:

• A modern award applies to the employee or employees, and
• the employee or employees are in the same job as they were before the modern award commenced, and
• the amount of the employees’ take-home pay for working the same sort of hours or the same amount of work has been reduced, and
• this reduction in take-home pay has occurred because of the commencement of the modern award.

Fair Work Australia will not make a take-home pay order if the reduction in take-home pay is minor or insignificant, or the workers have been adequately compensated in other ways for the reduction.

Who can apply for a take-home pay order?

You or your union can apply to Fair Work Australia for a take-home pay order. In addition, a person acting on your behalf or on behalf of a class of employees may apply. An application for a take-home pay order can also be made by an organisation representing outworkers on behalf of those outworkers.

How do I apply for a take-home pay order?

Further information about take-home pay orders and application forms are available from the Fair Work Australia website.