How it works
Every year, FairWork Australia will conduct an annual wage review, which often means an increase to base rates for employees paid under a modern award. If you are using the pre-built industry awards, then the payroll platform will provide updated versions of these award packages on the 1st of July every year, with the applicable rate changes included.
What you need to do
There are three steps that an administrator needs to complete when they want to apply the FairWork award updates. An administrator needs to complete these actions on both the Employment Hero HR and Payroll platforms. The three steps are:
Our payroll platform has an Award Updating feature that will guide you through the process involved in installing the latest award version. The updates we release incorporate the latest changes FairWork Australia made to the modern awards and the steps on how to undertake this process are:
- Log into your Employment Hero Payroll platform.
- Click the Business Settings menu.
- Click the Payroll Settings submenu.
- Click the Manage Awards button.
- Click the Actions button.
- Click the Apply Updates button.
- Select Yes or No to the following questions:
- Update rules sets.
If you have changed the rule set period from the system default, updating an award will reset the rule set period back to the system default.
Select yes to this question, if you would like all the default rule sets assigned to this award updated.
- Preserve custom rule sets.
Select yes to this question if you want your custom rule sets preserved. If you do not select yes, then the payroll platform will erase your custom rule set data.
- Preserve disabled rules.
Select yes to this question if you want your disabled rules preserved. If you do not select yes, then the payroll platform will enable the rule sets you had disabled.
- Update pay rates.
Select yes to this question if you want the system to update the pay rates for all employees linked to a pay rate template for this specific award. The system will only update rates that have changed. If you have overridden the rate for an employee linked to the award, these rates will not change, and the system will display a message if this is the case.
- Re-apply leave allowance templates to linked employees.
Select yes to this question if you want any leave allowance templates updated as part of this award update.
- Preserve custom work types.
There are certain settings of an award work type that you can change, such as Automatically Enabled For and Work Maps To. If you have customised any of these settings and you wish to preserve these setting, select Yes for this option when installing an award update.
- Preserve custom leave allowance templates.
There are certain settings of an award leave allowance temple that you can change, such as the following options:
- Leave year start date.
- Leave loading.
- Enabled leave categories.
- Leave category units.
- Leave category unit type.
- Leave category leave loading.
- Accrue in advance.
- Maximum accrual.
- Carry over.
- Contingent period/entitlement period.
- Preserve custom pay periods.
If you have customised just one setting listed above within a leave allowance template and you select yes to this question, the platform will deem the whole leave allowance as customised and will not update the template.
- Preserve custom pay categories.
There are certain settings of an award pay category that you can change, such as the following options:
- Super rate.
- Rate loading.
- PAYG exempt.
- Payroll tax exempt.
- Accrues leave.
- Hide units on pay slip.
- Payment classification.
- Rate precision.
If you have customised just one setting listed above and you want to preserve these settings, then select Yes to this question.
- Preserve custom rule set period.
Each pay condition has a rule set default period defined by the award. There may be cases where you choose to apply a rule period that runs in line with your pay period, and so you customise this setting. If this is the case, ensure you select Yes to this question.
- Click the Install button.
- Click the Accept button.
Once the payroll platform has installed the chosen award and classification, you will see a confirmation screen displayed.
The HR platform is the source of truth for your company settings, payroll settings, and employee file data. In order for you to apply the latest award updates to your employees, it requires you to import manually the updated award classification from the payroll platform. The steps on how to undertake this process are:
- Log into your Employment Hero platform.
- Click the Payroll Settings menu.
- Click the Classifications submenu.
- Click the Update From Payroll button.
The Classifications page will now show a green Updated button. This means the HR platform has successfully imported your classifications from the Payroll platform. You can click the View Pay Rates button to see further details about the classification, such as pay rate, pay type and pay category.
The HR platform is the source of truth for your company settings, payroll settings, and employee file data. What this means is you can view that the employee has the correct award applied through their employee file on the HR platform. The steps on how to undertake this process are:
- Log into your Employment Hero platform.
- Click the Personnel menu.
- Click the Employees submenu.
- Click the Employee's Name that needs their assigned award viewed.
- Click the Pay Details button.
- Click the Salary History tab.
- Click the Action button.
- Click the Edit button.
You will see the employees' award details on your screen.
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