Employment Information
Wages - Awards and agreements
The Tasmanian industrial relations system covers most unincorporated businesses in Tasmania (e.g. sole traders and partnerships) as well as some incorporated businesses operating in Tasmania (e.g. some charities and not-for-profit organisations). Businesses may need to seek legal advice to determine whether Tasmanian industrial relations laws apply to them. The information given on this site only relates to employment under Tasmanian industrial relations law. For information on Federal awards and agreements please contact WorkChoices.
The Industrial Relations Act 1984 includes provisions relating to leave entitlements such as parental leave, sick leave, personal and carer's leave and bereavement leave, enterprise agreements, pay-slips, employment records, termination and redundancy. These provisions underpin existing state award entitlements, and also provide a safety net for "award free" employees.
What is an award?
An award is a legal document setting out the minimum rates of pay and conditions of employment that apply to employees in a particular industry or occupation.
The Tasmanian Industrial Commission (TIC) must approve the award. An award is legally enforceable. This means that if a person or an organisation breaches the award, legal penalties may be imposed.
Which award covers employees at my workplace?
Employers need to find out which award covers their employees. Information about the industry covered by an award is contained in the Scope clause of an award. See below for an example of this clause of an award.
This award is established in respect of the industry of selling goods by retail in shops other than those within the jurisdiction of Automotive Industries, Bakers, Chemists, and Meat Trades Awards but including the selling by retail of cooked or other prepared food which is not to be consumed on the sellers’ premises, where those premises are principally used for the retailing of other goods.
In addition, Schedule 2 of the Industrial Relations Regulations 2005 extends award coverage to certain occupations, where no more specific industry award applies.
By law, employers are required to have a copy of the relevant award on display in their workplace for their employees' reference. You can obtain copies of state awards from the Printing Authority of Tasmania or view them online via the link.
More information on Tasmanian awards
Outlined below are some of the more common conditions found in Tasmanian awards. These are given as examples only – in all cases check the appropriate award for the exact provisions applicable.
Overtime, shift-work, call outs
Meal breaks, tea breaks, crib breaks
Terms of Engagement: full-time, part-time or casual
Full-time employees receive full weekly wages and conditions for working between 35 to 40 hours per week.
Part-time employees work a regular number of hours each week, but less hours than a full-time employee. The employee receives the hourly equivalent of the normal full-time rate (sometimes a little extra). A part-time employee generally receives all, or most of the benefits of a full-time employee but on a proportional or pro rata basis.
Casual employees are engaged to work on an hourly or daily basis. They receive an extra loading on top of the normal rate to compensate for not receiving benefits such as paid sick leave, annual leave and paid public holidays. This loading is generally between 15 and 33.3% above the normal full-time hourly rate.
Some awards specify that casual employees must be paid for a minimum number of hours per day. Other awards may allow employers to engage casual employees to work an indefinite number of hours. The employment of casuals may also be restricted to a specified number of occasions, for example, less than five days' duration. Since the definitions of part-time and casual employment vary between one award and another, it is essential to check the award for details when engaging a new employee.
Wages
The wage clause in an award specifies the minimum weekly wage that must be paid for each classification or grade of adult employee covered by the award. Each full-time adult employee must receive this amount as a minimum.
Sometimes the actual minimum weekly pay consists of a normal award wage plus compulsory additional components such as industry allowances or tool allowances. There are often additional rates to be paid for very specific circumstances such as working in the wet or dealing with toxic substances.
Junior employees are sometimes paid a percentage of the adult rate, depending on their age. Other awards set a specific rate of pay, depending on the age of the junior employee. In a few cases, awards set no special junior rates of pay – everybody covered by the award is paid full adult rates.
Wages should normally be paid on the same day each week. The Industrial Relations Act 1984 requires employers to provide their employees with a pay advice slip detailing payments and deductions such as income tax, superannuation payments, union dues and health fund.
Hours of work
Most awards state the maximum number of hours and days an employee can work without receiving any extra payment such as overtime. These hours are called ordinary hours. The award specifies the earliest starting time and the latest finishing time for ordinary hours. Hours worked outside these limits, or more than the maximum daily or weekly limits, may be classed as overtime.
Most awards provide for a five-day week with the maximum number of ordinary hours set between 35 and 40 hours. Awards where hours have been reduced to less than 40 hours per week may provide for the operation of flexible rostering arrangements.
For example, instead of working 38 hours each week, extra ordinary hours may be accrued so that the employee can have a rostered day off every four weeks.
Apart from normal Monday to Friday day work, many awards provide for employees to work their ordinary hours much earlier or later than usual, sometimes including weekends. Shift-workers are normally entitled to receive additional allowances and penalties on top of their normal rate of pay.
Some awards provide for employees to be paid penalty rates for working ordinary time on weekends or outside of a specified span of hours on weekdays.
Overtime, shift work & call outs
Employees who are required to work outside or more than their ordinary hours of work would normally be paid at overtime rates depending on the terms of the award. The rate of pay for overtime is specified in the Overtime clause.
A meal allowance may also be payable if the employee is required to work overtime. The meal allowance may not be payable if advance notice is given or if the employer provides a suitable meal.
Awards may provide for additional rates to be paid to workers on shift work, or who are called back to work outside their normal hours.
Meal-breaks, tea-breaks, crib-breaks
Generally, there must be at least one meal break of between 30 minutes and one hour during each day.
Some awards state the exact time at which the meal break should be taken. Normally the main meal break is taken in the employee's own time. It is not a paid break. Shift-workers may be entitled to a 20 minute paid crib break in each shift instead of the longer unpaid break.
Some awards provide for a rest period (tea break) either in the morning or afternoon, or both. In other cases, the award may not provide for any rest period at all in which case the granting of such breaks is largely at the employer's discretion. These rest periods or tea breaks normally count as time worked.
Award superannuation
Many awards require employers to make superannuation contributions on behalf of their employees. These contributions are usually made to an approved fund prescribed by the relevant award. The contributions required by the award may differ from the requirements of the Commonwealth Superannuation Guarantee scheme so it is important to refer both to the award and to the requirements of the Australian Taxation Office.
Public holidays
The public holidays applicable to employees will be listed in this clause. It is important to note that an entitlement to paid holidays for employees is not derived from the Statutory Holidays Act 2000 but is determined by relevant awards and/or industrial agreements.
Work performed on public holidays is usually paid at an increased (penalty) rate with a minimum payment as specified. Employees engaged on a weekly basis whose ordinary hours of work coincide with a public holiday are entitled to the day off without loss of pay.
Where to get more information
Printing Authority of Tasmania includes state awards online
Public holidays in Tasmania (Download lists of public holidays for Tasmania)
