Transitional arrangements, found in most modern awards, give employers and employees time to adjust to the changes in pay rates.
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 dealing with pay and / or other conditions - see the award for details
- no transitional arrangements - the full terms of the modern award applied from 1 January 2010.
In most cases, the model transitional provisions will apply. The model transitional provisions allowed employers to wait until the first full pay period on or after 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.
These model transitional provisions can be found in a schedule at the end of the modern award document.
Finding the right pay - tools to help you find your pay rate
The model transitional provisions
The model transitional provisions allow certain entitlements which are higher or lower than pre-modern award entitlements to be progressively phased in over a period of four years starting on the first full pay period on or after 1 July 2010. Where there was no existing loading or penalty applying under the existing instrument then the new loading or penalty in the modern award is also progressively introduced
The full modern award rate will apply from the first full pay period on or after 1 July 2014.
The model transitional provisions give employers and employees time to adjust to the changes in pay rates.
The model transitional provisions apply to:
- base rates of pay, including piecework rates
- casual and part-time loadings
- Saturday, Sunday and public holiday penalty rates
- evening and other penalty rates
- shift allowances or penalties.
In determining the correct pay rates during the transitional period, employers also need to factor in any annual wage review increases that Fair Work Australia may make. You should check that you are paying the correct rates from the first full pay period on or after 1 July each year. If your modern award contains the model transitional provisions, the provisions are generally found in Schedule A to the award.
There are certain specific transitional arrangements that affect the Children Services modern award, the Social, Community, Home Care and Disability Services modern award, some Building and Construction modern awards and some South Australian Hospitality employees.
Read more about transitional provisions