For private sector businesses that are not constitutional corporations, for example sole traders, partnerships with natural persons, trusts where the trustee is a natural person and some incorporated associations, 2011 will mean the commencement of Modern Awards. When these businesses were referred to the Federal workplace relations system on 1 January 2010 through the South Australian Government’s referral of the private sector, their State Awards were preserved as a Division 2B State Award.
To assist businesses in moving to the Modern Award system conditions such as wages, penalties and loadings can be phased in over a period of time. Fair Work Australia on 5 November 2010 published its decision on the phasing in arrangements of Modern Awards, commonly referred to as transitional provisions, for employers covered by Division 2B State Award.
Key aspects of the decision include:
· all terms of Division 2B State Awards to continue until 31 January 2011. Initially, Division 2B State Awards would cease to operate at the end of the 2010; and
· the transitional provisions to commence on 1 February 2011 with employers having to phase in Modern Award wages, penalties and loadings and industry allowances.
Business SA will provide specific fact sheets explaining the application of the transitional provisions to Division 2B Employers. In addition, training sessions will be offered in 2011 to assist Division 2B employers in paying their employees under Modern Awards. Business SA members can also meet one-on-one with a highly experienced Business Advisor who will guide a business through the complexities of the new award system and assist with questions at a fixed fee.
For further information, contact the Business Advisory Centre on 08 8300 0101.