By Morgan Collens

As we approach 2025, several awards will introduce updated definitions and minimum pay rates for entry-level classifications. Here’s an overview of what’s changing and how you can prepare.

What’s Changing?

Key changes are being implemented for some awards, including:

  • Limited duration for introductory classifications: Introductory classifications will only apply for a defined period, typically during an initial training or induction phase.
  • Updated minimum pay rates: New rules and minimum pay apply for these classifications.

These changes take effect from:

  • 1 January 2025 for most awards
  • 1 April 2025 for the Horticulture Award and Pastoral Award.

These adjustments stem from the Fair Work Commission’s Review of C14 and C13 Rates in Modern Awards, ensuring a fair and relevant minimum safety net for all employees.

To find out if your award is affected, check the List of Affected Awards and determine whether the changes apply from January or April 2025.

Introductory Classifications: New Rules

Introductory classifications, often labeled as “C14,” “introductory,” or “Level 1,” apply to employees in the initial stages of their role. From 2025:

  • These classifications will only apply for a maximum period (no longer than 6 months), which varies by award.
  • Progression to a higher classification can occur earlier if employees demonstrate the required skills or qualifications.
  • Employees not covered by introductory classifications must be paid at least the National Minimum Wage.

Example:

Zac, a new hire at a metal fabrication company covered by the Manufacturing Award, starts as a Level C14 employee. During his induction, he learns that he will move to Level C13 after 3 months or sooner if he demonstrates the necessary skills. Zac’s quick learning enables his progression to Level C13 after just 2 months.

Minimum Pay Adjustments

For some awards, the minimum pay rates for introductory classifications will increase on the first full pay period after:

  • 1 January 2025 for most awards
  • 1 April 2025 for the Horticulture and Pastoral Awards.

Employers should discuss any changes to employee classifications or progression timelines before these dates.

Example:

Sabrina, a new pest control technician, starts at Level 1 under the Pest Control Award. After completing training and gaining experience, she moves to Level 2 within 6 months, as per the award’s requirements.

Preparation Tips

Start Early: Entities can voluntarily align with these standards before they are mandatory. Early adopters may gain investor confidence and refine their processes ahead of deadlines.

Conduct a Gap Analysis: Review current reporting practices to identify improvements needed to meet the new requirements.

Build Internal Expertise: Equip teams with the necessary tools and training to handle the complexities of climate reporting.

Engage Auditors: External assurance will play a critical role in validating the accuracy of climate-related disclosures.

How to Prepare

Employers and employees should take the following steps:

  1. Check your award: Determine if the changes affect your industry and when they take effect.
  2. Review the final determination: Access detailed rulings from the Fair Work Commission’s Review of C14 and C13 Rates in Modern Awards.
  3. Update payroll systems: Ensure systems reflect the new classifications and pay rates.
  4. Communicate with employees: Inform affected staff about any classification changes or adjustments to their pay rates.
  5. Access updated tools: Use the Pay and Conditions Tool or updated pay guides to calculate rates.

Enterprise Agreements

For employees covered by enterprise agreements, new classification rates under the applicable award will still apply from:

  • 1 January 2025 for most industries
  • 1 April 2025 for horticulture and pastoral industries.

Employers should verify that introductory rates in their agreements meet at least the minimum rates outlined in the relevant awards.

List of Affected Awards

Below is a selection of awards with new introductory classification rules and minimum pay rates:

  • 1 January 2025: Airline Ground Staff Award, Manufacturing Award, Textile, Clothing, Footwear and Associated Industries Award, and more.
  • 1 April 2025: Horticulture Award, Pastoral Award.

For a complete list, visit the List of Affected Awards page.

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.