The Australian Retailers Association (ARA) has strengthened its salary absorption proposal as part of its application to the Fair Work Commission to vary the General Retail Industry Award (GRIA).
ARA Chief Industry Affairs Officer Fleur Brown said the ARA has listened to feedback through the FWC hearing process and responded with a stronger proposal around payment arrangements for salaried managers who work later trading hours.
"We have taken on board feedback in the hearing and proposed a more flexible approach. The ARA is pleased to put forward an enhanced proposal for salaried managers, including increasing the salaried rate to 135% for retailers with later trading hours, to ensure that individuals working any type of roster would receive a salary increase," said Ms Brown.
"This means retail managers could be on average $5,841.65 better off annually under an annualised salary option, providing greater income and financial stability.
"The enhanced proposal also provides a higher rate of 150% for any hours of work over 43 in a week for both retailers with, and without, extending trading hours."
"Importantly, our proposed changes introduce an obligation on employers to check how many hours beyond an average of 43 in a week have been worked at the end of a 6 month period in order to identify whether employees are entitled to any additional payments (or equivalent time off in lieu)."
"This is helpful for employees and businesses – giving employees even more choice while ensuring small businesses can confidently meet their obligations," said Ms Brown.
The ARA's enhanced proposal, seeks to reflect the diversity of the retail sector, where businesses of all sizes operate under the same Award but have varying needs.
"Despite a recent misinformation campaign by unions, it's important to be clear that all penalty rates, overtime, and paid breaks remain unchanged under the GRIA. Importantly, the choice to opt into the benefits of this salary model, is entirely up to each employee."
Council of Small Business Organisations Australia (COSBOA) CEO Luke Achterstraat said the enhanced proposal recognises the varying needs of businesses covered by the GRIA, while giving employees greater choice and financial certainty.
"In the retail sector alone, employers must navigate 994 different pay rates across 96 pages just to ensure their employees are paid correctly. It's unworkable."
"Red tape is killing Australian small businesses, and we welcome changes that provide more certainty for both employees and small business," said Mr Achterstraat.
Ms Brown said that the ARA would continue to advocate through the Fair Work Commission, for a modern Award that truly reflects the needs of employees and businesses.
In response to the current review, the ARA put forward 13 recommendations that seek to simplify the award, provide greater choice to employees, and which better reflect the modern retail workplace.
BACKGROUND
You can view the ARA 13 recommendations here.
The enhanced proposal, building on the ARA's initial proposal, has three parts:
- Firstly, the proposal distinguishes retailers with late trading hours and introduces a salaried rate of 135% of the weekly rate of pay for 43 hours of work (averaged over 6 months).
- Secondly, the proposal introduces a higher rate of 150% for any hours of work over an average of 43 in a week for both retailers with, and without, extending trading hours.
- Thirdly, the proposal introduces an express obligation on employers to check whether hours beyond an average of 43 in a week have been worked at the end of a 6 month period in order to identify whether employees are entitled to any additional payments (or equivalent time off in lieu).
