GoodForge
What’s New in GoodForge – Jul 2025 Edition.

What is covered by an award?

What is covered by an award?

Awards cover things like pay, overtime rates and conditions, special leave arrangements, special allowances and hours of work. They identify conditions over and above the minimum required by legislation.

Do you have to be paid under an award?

Award and agreement free employees can be paid piece rates or commission payments. They still need to be paid at least the national minimum wage. For information about how to pay piece rates to an employee see Piece rates and commission payments.

Are awards legally binding?

Awards are legally binding instruments which regulate the terms and conditions under which workers may be employed.

Can an employee be covered by 2 awards?

While only 1 modern award can cover an employee in relation to particular employment, when all of the employees employed in an enterprise and covered by an enterprise agreement are considered, there may be more than 1 relevant award.

Can an employer change your award?

Yes, with employee consent the employer can reduce the employee’s pay, but the employer cannot reduce the pay below the national minimum wage, or the minimum amount prescribed by an award or enterprise agreement for the job the employee is doing.

What are penalty rates?

Penalty rates are higher rates of pay that some employees are entitled to if they work: weekends; public holidays; late nights; or. early mornings.

Is paying below award wages illegal?

It is generally dependent on the industrial instrument that applies to their employment. For example, a modern award or registered agreement. Employers and employees cannot be paid less than their applicable minimum wage, even if they agree to it.

What is the difference between an award and an agreement?

Modern awards set out the minimum employment entitlements for the majority of employees in a particular industry or occupation. Enterprise agreements set employment entitlements for employees of a particular employer or group of employers.

Who is covered by the Schads award?

The Social, Community, Home Care and Disability Services Industry Award 2020 (“SCHADS Award”) covers many employers in the social and community services sector. This includes many charities, not-for-profits and NDIS providers. It is one of the most complex modern awards and runs to over 100 pages.

What are the dates of a back pay award?

The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. The period (s) the back pay award covers (beginning and ending dates—month and year).

What does back pay awarded under a statute mean?

Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee’s right to employment or wages.

When is back pay considered to be wages?

For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages.

How is back pay determined by the Department of Labor?

Back wages are typically determined by the date an employee was terminated and the date a judgment was received. The Fair Labor Standards Act ( FLSA) is enforced by the Wage and Hour Division of the Department of Labor. It codifies standards and sets into law labor practices governing minimum wage, overtime pay, child labor and more.