FAQs - ARA GRIA Application

This FAQ provides answers to common questions about the proposed Award reforms. It is designed to help employees, retailers and stakeholders understand the key elements of the proposal, how it impacts employees and businesses and the benefits of a modernised, more flexible retail sector.

ARA's proposal

Why is ARA looking to change the General Retail Industry Award (GRIA)?

• The Australian Retailers Association (ARA) application is to clarify, simplify and modernise the GRIA. 
• We are responding to a review of modern awards in the Fair Work Commission, introduced by the Federal Government in 2023.
• The ARA submitted an application with 17 proposals in February 2024.
• The FWC hearing to determine the ARA's application is scheduled for March 2025.

What is the ARA's proposal to the Fair Work Commission?

• Our proposal to the Fair Work Commission introduces choice and flexibility for employees and simpler rules for businesses, all while protecting the rights of working Australians. For example, our proposal includes the option for employees to more easily work a four-day working week or to choose to work two shifts on one day ("split shifts") – this and makes it easier to work around family or personal commitments.
• The proposal also includes an option for retail managers to choose a 'rolled-up' salaried rate calculated at least 125% of the minimum weekly rate of pay to receive a consistent pay packet each week (e.g. Level 4 retail manager = $54,680 and Level 8 retail manager = $77,447). This is capped at 43 hours per week of work, averaged over 6 months.
• The analysis of the SDA's sample rosters shows that on average retail managers earn $2,806 more under this opt-in salary proposal to the Fair Work Commission.
• Salary exemption is not a new award concept. It already exists in a number of awards, including the Hospitality Industry Award.
• Importantly, the salary exemption rate is an opt-in proposal. For retail managers who do not choose to opt-in, the existing Award rates, including penalty rates and overtime, continue to apply.

What is the ARA proposing in relation to work breaks?

• Our proposal seeks to add choice and flexibility into the current Award. Under our proposal, employees can choose to take their breaks at other points throughout the day to better manage commitments outside of work.
• One example of this added flexibility would be for a worker who wishes to take their break at the end of their shift so they can go home early whilst keeping the same pay.
• This proposal could create additional employment opportunities for people who need more flexibility to participate in the modern workforce.

How will this proposal impact small businesses?

• With 994 pay rates across 96 pages, the current retail award is one of the most complex in Australia.
• Over 90% of ARA members are small businesses, and this proposal makes compliance easier while maintaining protections for employees. Simpler rules mean businesses can focus on job creation and growth instead of navigating excessive red tape.
• More than half of retail businesses surveyed by the ARA say current workplace relations laws create barriers to better employment outcomes, such as the ability to work a smoothed 38 hours over four days or to work split shifts to accommodate their personal needs of employees. 

Will the salary absorption proposal affect all retail employees?

• No, our proposal for salary absorption is only available to salaried managers such as Store Managers, Assistant Store Managers and Department Managers, which accounts for only a small percentage of retail employees in the sector.

Will retail employees get a choice in whether they agree to ARA's proposed salary absorption system?

• Yes. Employees can opt in if they want greater flexibility in their workday – it is their choice.

Are employees better off under ARA's proposed salary absorption system?

• Managers who opt in will receive the benefit of a higher rolled-up rate calculated at least 125% of the minimum base rate of pay and greater consistency in their pay packet.
• An ARA analysis of rosters supplied to the FWC by the SDA, shows the majority of employees would be financially better off under the ARA's proposal, with an average annual benefit above the GRIA of $2,806, across the rosters analysed. This figure is based purely on the rosters supplied by the SDA, and for many employees the benefit will be significantly higher.
• Employees who opt in also remain covered by the GRIA, with protections like capped hours of 43 per week and mandatory breaks, both during and between shifts. If managers work on public holidays or beyond the capped hours of 43 per week, they will receive additional payments on top of their salary.

What does the salaried exemption proposal mean for worker entitlements?

• This proposal is about giving retail managers more choice, with an option to be paid an annualised salary, so that they have consistency and certainty over their income.
• Retail managers should have the same flexibility as managerial employees in other industries who have had the benefit of modern work arrangements for a long time, such as those working in hospitality.
• If managers choose not to opt into the salaried arrangement, all existing entitlements, including penalty rates, overtime, and meal breaks, remain unchanged.

Will retail employees have a choice in their work schedules?

• Yes. The ARA proposal is centred on choice and flexibility – giving retail employees the option to choose to work a four-day work week or split shifts or be paid a salary if they are managers.
• No changes can be forced on retail employees – it is opt in.

How does the salaried exemption proposal impact break and rest times?

• The salaried exemption proposal retains a 30-minute meal break for retail managers (for every six hours of work), but it otherwise removes all of the other restrictions on when breaks can be taken and for how long. This reflects the salaried nature of the retail manager role, as they can decide to take breaks as and when needed.

How does this salaried exemption proposal support retail employees?

• This option would give employees certainty over their income and greater flexibility to structure their work in a way that balances work and life.
• Overall, retail managers could be thousands of dollars better off under this opt-in salary proposal to the Fair Work Commission.