Slight changes prompt calls to ensure contracts are compliant
Road freight bodies are reminding businesses to examine employment contracts with drivers in light of minor Award changes.
Updates see slight changes in the classification structure of the Road Transport and Distribution Award 2020 and the Road Transport (Long Distance Operations) Award 2020.
“There has not been a wage increase … but all members should examine their employment contracts with drivers because of a small change in the classification structure of the Awards,” the National Road Transport Association (NatRoad) says in a communique.
“The new classifications reinforce that the [Long Distance and Distribution] Awards complement each other, in that many drivers work under both Awards when they switch from long distance to local work and vice versa.
“The classifications in the Long Distance Award and the Distribution Award now have the same description.
“To align the two awards the classification in the Long Distance Award now starts at grade 3.”
The FWO has been busy this year with transport underpayment cases
Road Freight NSW’s (RFNSW’s) summary of the Road Transport (Long Distance Operations) Award 2020 changes include:
- the year in the title of the award has been changed to 2020
- a new Schedule has been added to the award to provide a Summary of Hourly Rates of Pay
- a new Schedule has been added to provide a Summary of Monetary Allowances
- the more substantive parts of the domestic violence leave clause have been removed given that this topic is now dealt with in the Fair Work Act.
RFNSW’s summary of the Road Transport and Distribution Award 2020 include:
- the year in the title of the award has been changed to 2020
- a new Schedule has been added to the award to provide a Summary of Hourly Rates of Pay
- a new Schedule has been added to provide a Summary of Monetary Allowances
- the more substantive parts of the domestic violence leave clause have been removed given that this topic is now dealt with in the Fair Work Act
- previous terms like “time and a half” and “double time”, have been replaced with references to a particular percentage of a relevant rate, e.g. “150% of the ordinary hourly rate”
- the award includes key definitions of “all purposes” and “ordinary hourly rate”, that are relevant when calculating penalties, loadings and annual leave payments.
The expression “all purposes” is defined as payment will be included in the rate of pay of an employee who is entitled to the allowance, when calculating any penalties or loadings or payment while they are on annual leave.
The expression “ordinary hourly rate” is defined as the hourly rate for the employee’s classification specified in clause 17 — Minimum rates, plus any allowances specified as being included in the employee’s ordinary hourly rate or payable for all purposes.
“It can be seen that all-purpose allowances need to be included when calculating penalties, loadings and annual leave payments. Only some of the allowances in the award are all-purpose allowances,” RFNSW adds.
The Queensland Trucking Association (QTA) says the “majority of the changes are made to enhance the readability of the award and improve uniformity between these awards and all other related awards”.
QTA adds that while the changes are “common-sense”, employers should still review the following arrangements:
- employment letter templates
- wage rate sheets
- payroll records
The new versions of both award are operative from the first full pay period that started on or after May 4, 2020.