Key information on the Review of C14 and C13 rates in modern awards case:
Questions
What is the Review of C14 and C13 rates in modern awards all about?
What is the Review of C14 and C13 rates in modern awards all about?
The Fair Work Commission (FWC) has been conducting a review of modern awards containing the C14 and C13 classifications.
On 19 November 2024, a Decision was handed down by the FWC. This decision confirmed variations for the transitional periods of C14 classifications for some awards and stipulated increases for others where the lowest classification fell below the C13 wage rate.
Which awards have been impacted by the changes?
Which awards have been impacted by the changes?
The Decision and Determinations published in the Review of C14 and C13 in modern awards case affect the following Awards in Tanda:
MA000010: Manufacturing and Associated Industries and Occupations
MA000073: Food, Beverage and Tobacco Manufacturing
MA000094: Fitness Industry
MA000080: Amusement, Events and Recreation
MA000096: Dry Cleaning and Laundry Award (Dry Cleaning Stream)
MA000118: Animal Care and Veterinary Services
MA000120: Children’s Services
When do the changes come into effect?
When do the changes come into effect?
These changes take effect from the first full pay period commencing on or after 1 January 2025.
What this means is that if you have a weekly pay period that commences on a Monday, these changes will be in effect from Monday 6 January 2025 as this is the beginning of your next full pay period after the effective date.
Summary of Determinations
A full list of the Award Determinations published for this case can be found here.
Included below are the details of Tanda Managed Awards that have been varied by this Case.
Managed Awards that have had the transitional periods of the C14 classification varied:
Managed Awards that have been varied with rate increases to align the C13 equivalent classification rate:
For further information on the specific changes to each award, as outlined in the Determinations issued by the FWC, please see below:
MA000010: Manufacturing and Associated Industries and Occupations
MA000010: Manufacturing and Associated Industries and Occupations
A link to the Determination for the Manufacturing and Associated Industries and Occupations Award can be found here.
The FWC has confirmed a 3 month transitional period for the C14 classification.
The Determination provides that an employee classified at C14 must be reclassified to C13 within 3 months of employment at the C14 rate.
Please note, Tanda will not automatically update an employee from C14 to C13. Employees will need to be reviewed after 3 months and reclassified to the appropriate rate.
To automate this change we recommend using the scheduled pay conditions functionality. For more information on updating pay conditions/ setting the pay conditions to take effect on a future date, please see here.
MA000073: Food, Beverage and Tobacco Manufacturing
MA000073: Food, Beverage and Tobacco Manufacturing
A link to the Determination for the Food, Beverage and Tobacco Manufacturing Award can be found here.
The Determination provides that an employee classified as a Level 2 employee under this Award will have completed a structured training program over a period not exceeding 3 months to reach the required level of competency of a Level 2 employee.
This means that an employee should not be classified as Level 1 for more than 3 months. Tanda will not automatically update the employment classification from Level 1 to Level 2 after 3 months. Employees will need to be reviewed after 3 months and reclassified to the appropriate rate.
To automate this change we recommend using the scheduled pay conditions functionality. For more information on updating pay conditions/ setting the pay conditions to take effect on a future date, please see here.
MA000094: Fitness Industry Award
MA000094: Fitness Industry Award
A link to the Determination for the Fitness Industry Award can be found here.
The Determination provides that a Level 2 employee will have completed the lesser of 456 hours of training or 6 month's employment at Level 1.
This means that an employee should not be classified as Level 1 for more than 456 hours of 6 months. Tanda will not automatically update the employment classification from Level 1 to Level 2 after 6 months. Employees will need to be reviewed and reclassified accordingly.
To automate this change we recommend using the scheduled pay conditions functionality. For more information on updating pay conditions/ setting the pay conditions to take effect on a future date, please see here.
MA000080: Amusement, Events and Recreation
MA000080: Amusement, Events and Recreation
A link to the Determination for the Amusement, Events and Recreation Award can be found here.
The Determination provides that a Grade 1 employee will have received up to 3 months training to prepare them with the competencies to work at this level.
This means that an employee must not be classified at the Introductory Level for more than 3 months. Tanda will not automatically update the employment classification from Introductory to Grade 1 after 3 months. Employees will need to be reviewed and reclassified accordingly.
To automate this change we recommend using the scheduled pay conditions functionality. For more information on updating pay conditions/ setting the pay conditions to take effect on a future date, please see here.
MA000096: Dry Cleaning and Laundry Award (Dry Cleaning Stream)
MA000096: Dry Cleaning and Laundry Award (Dry Cleaning Stream)
A link to the Determination for the Dry Cleaning and Laundry Industry Award (Dry Cleaning Stream) can be found here.
The Determination provides that a Dry Cleaning Employee (Level 1) will undergo training for up to 6 months to reach the required level of competence to work as a Level 2 employee.
This means that a Dry Cleaning Employee may be classified at Level 1 for a maximum period of 6 months. Tanda will not automatically update Level 1 Dry Cleaning Employees to Level 2 after 6 months. Employees at this level will need to be reviewed and reclassified accordingly.
To automate this change we recommend using the scheduled pay conditions functionality. For more information on updating pay conditions/ setting the pay conditions to take effect on a future date, please see here.
MA000118: Animal Care and Veterinary Services
MA000118: Animal Care and Veterinary Services
A link to the Determination for the Animal Care and Veterinary Services Award can be found here.
The Determination provides that an employee classified at the Introductory Level will proceed to Level 1 after a period not exceeding 3 months.
Tanda will not automatically update employees on the Introductory Level to Level 1 after 3 months. Employees at this level will need to be reviewed and reclassified accordingly.
To automate this change we recommend using the scheduled pay conditions functionality. For more information on updating pay conditions/ setting the pay conditions to take effect on a future date, please see here.
MA000120: Children’s Services
MA000120: Children’s Services
We have recently made other improvements to the Children's Services Managed Template to incorporate further automation for rest periods between shifts. For further details on this update, please see here.
A link to the Determination for the Children's Services Award 2010 can be found here.
The Determination provides rate increases for two classifications in the Children's Services Award:
Support Worker 1.1
Children's Services Employee 1.1
Tanda will manage this rate rate increase.
No action is required to receive the rate increase outlined in this Determination in Tanda. The update will occur automatically and apply to rosters and timesheets from the first full pay period on or after 1 January 2025.
While this update will be automated in Tanda, depending on the payroll software you use, you may need to update the base hourly rates for the impacted classifications manually in your payroll software to reflect this increase.
Please see the below for further details on actions required within payroll:
Updating rates for Tanda Payroll
Updating rates for Tanda Payroll
For Tanda Payroll clients, base rates update automatically in Payroll for any employees on one of the Managed Award Templates.
Updating rates for Xero and MYOB AccountRight Live
Updating rates for Xero and MYOB AccountRight Live
For Xero and MYOB AccountRight Live clients, base rates update automatically through Tanda's integration with these providers.
The rates will be updated upon export of the first finalised pay period after the new rates have come into effect.
For these rate increases, this will be the first full pay period commencing on or after 1 January 2025.
NOTE: The timesheets will need to be exported the day after the pay period ends to reflect in Xero and MYOB correctly.
No further action is required, however, you should confirm that the updates have occurred as expected before finalising your first pay run after the change.
Updating rates for all other payroll systems
Updating rates for all other payroll systems
At the beginning of the first full pay period commencing on or after 1 January 2025, follow the below steps to match the rates in your payroll software to the rates in Tanda:
Generate a report of the new base hourly rates in Tanda. To do this navigate to Compliance > Award Template > click Manage next to the applicable modern award:
In the settings for each Manage Award Template, you will find a payroll configuration report button. For example, please see the below button for the integration with CloudPayroll:
Once the button is clicked, the below page will display where the list of current base rates and allowances can be printed:
Then update the base hourly rates in your payroll software to match the new base hourly rates contained in the Payroll Configuration Report.
NOTE: Depending on the payroll software integration enabled, the configuration report button might be named something different but it will always be located in the same place as the above image.
How to Update a Classification/ Level in Tanda
A Classification/ Level in Tanda is the tag that is used to denote the hourly rate of an employee.
There are three ways the Classification/ Level can be updated in Tanda.
Updating the Classification/ Level via the Pay Conditions
Updating the Classification/ Level via the Pay Conditions
The Classification/ Level can be managed on an individual/ profile level.
Navigate to Workforce > Staff > Employee Name > Pay Conditions > then select Edit Current Pay Conditions
Then you will be prompted to select how you want to make the pay condition change:
From the start of the current pay cycle;
From the start of the previous pay cycle; or
From the start of employment or previous pay conditions
From the Classification/ Level drop-down select the applicable rate:
Once you've updated the pay conditions, select Confirm Changes
Updating the Classification/ Level via Scheduled Pay Conditions
Updating the Classification/ Level via Scheduled Pay Conditions
If you would like to automate a pay condition change for a future date, you can use the Scheduled Pay Conditions functionality.
Navigate to Workforce > Staff > Employee Name > Pay Conditions > select Schedule Change
Then you will be prompted to select the effective date for the Pay Condition change:
To have the pay conditions apply from 6 January 2025 select 'On a custom date' and input the date into the pop-up field:
Once a date is selected the pay conditions will populate below. Then you can update the Classification/Level as required:
Once you're happy with the updated pay conditions, select Confirm Changes to schedule the change.
Once the changes have been saved, the scheduled pay conditions will appear in the employee profile under Upcoming Pay Conditions:
Updating the Classification/ Level via Manage Employment Conditions
Updating the Classification/ Level via Manage Employment Conditions
If you need to update the Classification/ Level of multiple employees at once, there is the ability to action this change in bulk via the Employment Conditions CSV.
To access the Employment Conditions CSV, navigate to Workforce > Staff > Tools > Manage Employment Conditions:
Select Export to CSV to download a copy of your employees' pay conditions:
Once the pay conditions have converted to CSV, select the Download CSV button:
Open the CSV in a spreadsheet software. Then you can filter the view based on the employees you need to update:
If updating the current pay conditions, update the Classification column to the required change.
If actioning this updated as a scheduled change, update the Start Date + Classification columns.
Once the required updates have been completed in the CSV, download an updated version with the changes. This file will be re-imported into Tanda.
When you're ready to re-import the CSV into Tanda, navigate back to the Manage Employment conditions page and switch to the Import CSV tab:
Then drag your updated CSV file to the Add a file step and select Import CSV
You can validate the update has worked by reviewing the employee profile.
NOTE: We also recommend testing these changes in the Staging environment first to validate the correct fields have been updated in the CSV.
Further Information
For more information on the outcomes of the C14 & C13 Rate Review, please see the Fair Work Ombudsman article: Changes to entry-level classifications in awards.
If you have any questions regarding the above, please contact our support team via live chat or email (support@tanda.co).