By Alexandra Marriott
A recent decision by the full bench of the Australian Industrial Relations Commission (AIRC) has ruled against paying penalty rates to “highly paid” professionals.
The Award Modernisation request included the stipulation that the creation of modern awards was not intended, among other things, to “extend award coverage to those classes of employees, such as managerial employees, who, because of the nature or seniority of their role, have traditionally been “award free” nor “result in high-income employees being covered by modern awards”.
Early scheduling for the award modernisation process described one of the Stage 4 modern awards to be created as the “General Award or Miscellaneous Award”.
Considerable concern has abounded throughout consultations with, and submissions to, the AIRC by employer groups concerned about the extension of the Miscellaneous Award to traditionally award-free employees, and high-income employees, despite the proscriptions contained within Minister Gillard’s Award Modernisation Request.
The draft modern Miscellaneous Award 2010 expanded the coverage of the Award to both high-income employees and employees who have been traditionally award-free.
In the version of the Award ultimately made by the AIRC, the coverage is narrowed slightly.
The coverage of the Award now makes the following exclusion in line with the terms of the Award Modernisation Request:
“The award does not cover those classes of employees who, because of the nature or seniority of their role, have not traditionally been covered by awards including managerial employees and professional employees such as accountants and finance, marketing, legal, human resources, public relations and information technology specialists.”
Whilst a number of employer groups have already applauded this decision, I would also note that this is one of the outcomes of award modernisation that I am pleased about. The new safety net should be, as the legislation promises us, easily implemented, and allow businesses to continue to manage their workforces, and businesses, in a productive and efficient manner without additional regulatory burden or cost.
Of course, the Financial Sectors Union have been quoted as arguing for an award safety net for all employees. Others have argued that the new safety net for award-free employees – the National Employment Standards – provides adequate protection and entitlements, including notice of termination and redundancy.
What do you think? Should high-income employees receive penalty rates and higher rates for overtime? Should they have been included in the Miscellaneous Workers Award? And is the ‘new safety net’ of National Employment Standards adequate?
Let us know what you think about this issue in the comments section, below.
I most definitely think awards should cover all those who earn a wage. Those who work for themselves are a different matter as they build those “extras” into what they charge. However anyone who works for a wage or salary and has to pay, PAYE taxes should be covered by awards and should be entitled to overtime and other wage earner benefits.