Pastoral Award 2010 – the basics
The Pastoral Award 2010 is a modern award created under the Fair Work Act. It commenced operation on 1 January 2010 and applies to all national system employers.
As of 1 January 2010, the only federal award which applies to the dairy industry is federal Pastoral Award 2010. However, there are special rules about when that award applies which depend on your business structure and award coverage as at 1 January 2010.
If your business was run by a company or a trust with a company as trustee as at 1 January 2010, the Pastoral Award 2010 will apply to you as of that date regardless of which award covered you before then and regardless of whether you were award free.
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There are however transitional arrangements relating to pay and other entitlements. For more information go to transitional arrangements.
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If your business is not in Western Australia and is run by a sole trader, a partnership or trust which does not have a company trustee and was award free as at 1 January 2010, the Pastoral Award 2010 will apply to you as of that date.
If your business is not in Western Australia and is run by a sole trader, a partnership or trust which does not have a company trustee and if your business was covered by a state award, and you employed employees as of 1 January 2010, the state award will continue to apply for a 12-month transitional period. After that time the modern Pastoral Award 2010 will apply but there may be additional transitional arrangements. You are called a state transitional employer.
If your business is not in Western Australia and is run by a sole trader, a partnership or trust which does not have a company trustee and if your business was covered by the federal Pastoral Industry Award 1998 as a transitional employer as at 1 January 2010, you will be bound by the modern Pastoral Award 2010 as of 1 January 2010.
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There are however transitional arrangements relating to pay and other entitlements. For more information go to transitional arrangements.
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Non national system employers in Western Australia will either be bound by the Pastoral Industry Award 1998 as a federal transitional award or if not bound by that award will be award free.
If you want to know more about which award applies to your business go to Which award?
National system employers should also refer to the National Employment Standards to understand how this impacts upon their application of this award.
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There must be a copy of the award at the workplace
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The Pastoral Award 2010 requires employers to keep a copy of the award on a noticeboard at or near the workplace or electronically, whichever is more easily accessible by employees. |
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Hours of work
Ordinary hours
Under the Pastoral Award 2010 ordinary hours are 152 hours worked over a four-week period. Ordinary hours for casuals are the same as for full-time employees.
There are minimum hours of work for all part-time and casual employees.
For part-time employees the award specifies that the employer must roster the employee for a minimum of 3 hours on any shift.
For casual employees the award specifies that on each occasion the casual attends for work they are entitled to a minimum payment of 3 hours work.
Overtime
Once the 152 hours have been worked, overtime is at the rate of time and a half for all hours worked with double time being paid for any work done on Sundays. Feeding and watering stock on Sundays is paid at the rate of time and one half.
Alternatively, the employee can elect to take time off duty with pay for a period equal to the overtime worked.
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Classifications and pay rates
The federal Pastoral Award 2010 creates five separate classifications for dairy farm employees with different rates of pay for each classification.
The classifications reflect the experience and skills of employees.
The classifications are:
- dairy operator grade 1A (farm and livestock hand level 1 - FLH1)
- dairy operator grade 1B (farm and livestock hand level 3 - FLH3)
- dairy operator grade 2 (farm and livestock hand level 5 - FLH5)
- senior dairy operator grade 1 (farm and livestock hand level 7 - FLH7)
- senior dairy operator grade 2 (farm and livestock hand level 8 - FLH8).
For further information and up to date rates of pay go to the Pastoral Award 2010 clause 27.
For pay rates for trainees go to http://www.airc.gov.au/awardmod/databases/ntw/Modern/NTW.pdf.
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Public holidays
Public holidays are provided for in the National Employment Standards (NES).
In addition to the NES, the Pastoral Award 2010 provides for farm and livestock hands to receive double time if they work on a public holiday.
Substitution of other days
The Pastoral Award 2010 allows for employers and individual employees or employers and the majority of employees to agree to substitute an alternative day for the public holiday.
Annual leave
Annual leave is provided for in the National Employment Standards.
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Annual leave loading
In addition to the NES the Pastoral Award 2010 provides for payment of a 17.5% annual leave loading for all annual leave which is taken as leave or paid out upon termination of employment.
Directing employees to take annual leave
The Pastoral Award 2010 provides for employers to direct employees who have at least 8 weeks accrued annual leave to take ¼ or less of their accrued annual leave.
Before requiring the employee to take annual leave the employer must have genuinely tried to reach an agreement about the employee taking the leave.
Employers must give employees at least 4 weeks notice of the requirement to take the annual leave.
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Personal/carer’s leave and compassionate leave
Personal/carer’s leave and compassionate leave are a part of the National Employment Standards.
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Notice of termination
The NES provide for notice of termination.
Employee notice
In addition to the NES, the Pastoral Award 2010 provides for employees to give the same amount of notice as employers and if they fail to give notice, employers can deduct money from the employee’s termination payments.
However, employees do not have to give the additional week of notice based on the age of the employee and length of service.
Job search entitlement
Where an employer has given an employee notice of termination, the employee is entitled to take one day off without loss of pay to look for other work. The employee can take the day off at a time when it is convenient to the employee after consultation with the employer,
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Individual Flexibility Agreements
Every modern Award must include a ‘flexibility term’ which enables employers and employees to agree to vary the effect of some award terms and put in place conditions of work which are tailor-made to suit the needs of their business and their employees. This is called an Individual Flexibility Agreement (IFA).
Because Individual Flexibility Agreements stand in the place of the award terms which they modify, employers cannot be liable in the future for payment of those award entitlements.
The Fair Work Act ensures these arrangements do not undermine minimum employee entitlements by requiring the employer to ensure the employee covered by the IFA is 'better off overall' on the IFA compared to the modern award.
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Transitional arrangements
To lessen the financial impact of the new award terms on employers and employees, the Pastoral Award 2010 contains transitional provisions which allow increases and decreases in minimum conditions affecting pay to be phased in. The transitional rates apply from the first full pay period after 1 July 2010.
Calculating transitional pay rates
As of 1 July 2010 there are two main changes to pay rates under the Pastoral Award 2010.
- The transitional provisions which are a part of the award begin to apply to phase in pay rates, loadings and penalty rates over the next 5 years.
- As of the first full pay period after 1 July 2010 the minimum wage for each classification in the Pastoral Award 2010 will increase by $26.00 per week.
Note: if you are already paying more than $26.00 per week above the award rate for the particular classification, you do not have to pay the increase.
These changes apply to all employers who are bound by the Pastoral Award 2010.
Note: The transitional provisions do not apply to overtime. Overtime rates apply to all employers as of 1 January 2010.
How do I work out the transitional pay rates?
The transitional provisions in the award provide for a phasing in of pay rate increases over a five-year period until 2014 at the rate of 20% per year.
Transitional pay rates are calculated by:
- Taking the pre-modern award rate
- Taking the modern award rate (Pastoral Award 2010)
- Calculating the transitional amount = modern award rate minus pre-modern award rate
- Calculating 80% of transitional amount
- Taking the new award rate (the rate inclusive of the increase as of 1 July 2010)
- Calculating the transitional wage rate for this classification (from first pay period after 1 July 2010) = new award rate minus 80% of the transitional amount
To find out transitional pay rates for 2010–2011 for people employed by your business select the option below that applied to your business as at 1 January 2010:
How do I work out the transitional loadings and penalty rates?
Loadings and penalty rates phase in or out in the same way. That is, they phase in or out at the rate of 20% per year for the next 5 years.
For example, in Queensland there was never a state minimum for public holiday pay. The Pastoral Award 2010 specifies double time for work on public holidays.
Therefore, over the next 5 years the double time component will phase in at the rate of 20% per year as follows:
| 2010 |
120% |
| 2011 |
140% |
| 2012 |
160% |
| 2013 |
180% |
| 2014 |
200% |
Important note for employers in Queensland
As at 1 July 2010 there was uncertainty as to whether sole traders and partnerships in Queensland who have come into the federal system as of 1 January 2010 could take advantage of the transitional provisions about pay rates. This has now been clarified by Fair Work Australia and the award has been varied to make it clear that these employers are entitled to the same phasing in arrangements as companies.
As a result there will be different rates for dairy farmers in Queensland depending on whether they run their business with a company or as a sole trader or partnership.
For more information
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