From 1 January 2010, modern awards have covered most workplaces.
Transitional arrangements, found in most modern awards, give employers and employees time to adjust to the changes in pay rates (including loadings and penalties).
Modern awards may contain:
- model transitional provisions that phase in changes to pay rates from 1 July 2010 across a four year period
- specific transitional provisions unique to the modern award and dealing with pay and/or other conditions - see the award for details
- no transitional arrangements - the full terms of the modern award apply from 1 January 2010.
In most cases, the model transitional provisions will apply. The model transitional provisions allowed employers to wait until 1 July 2010 to start paying the new base rates of pay and certain other entitlements under the modern award. These base rates and entitlements will be phased in over a period of four years until the full modern award rate applies on the first full pay period on or after 1 July 2014.
The phasing instalments adjust each year from the first full pay period on or after 1 July until the end of the transitional period in July 2014.
These model transitional provisions can be found in a schedule at the end of your applicable modern award.