Can One Business Be Covered Under Multiple Awards? How to Manage Compliance Effectively
In Australia, businesses must comply with the Fair Work system, which includes Modern Awards tailored to various industries and occupations. A single business can indeed fall under multiple awards when employees perform different types of work. While this flexibility ensures fair entitlements across diverse roles, managing multiple awards can be complex and, if mishandled, lead to costly non-compliance.
Here’s everything you need to know about managing multiple awards within your business and ensuring compliance.
Can One Business Be Covered Under Multiple Awards?
Yes, it’s common for businesses to fall under multiple awards, especially if they employ staff in varied roles. For example:
- A retail business might fall under the General Retail Industry Award for store workers and the Clerks – Private Sector Award for administrative staff.
- A construction company may be covered by the Building and Construction General On-site Award for on-site workers and the Vehicle Repair, Services and Retail Award for mechanics maintaining equipment.
Each role must be matched to the appropriate award, and employees must receive the pay rates and entitlements outlined in that award.
Steps to Manage Multiple Awards
1. Identify Which Awards Apply
Start by understanding which awards apply to your business.
- Analyse Job Roles: Review the duties and responsibilities of each position in your business.
- Use Fair Work Resources: The Fair Work Ombudsman’s Pay and Conditions Tool can help determine the appropriate award for each role.
- Seek Professional Advice: Complex roles or businesses with overlapping duties may require expert assistance to ensure correct classification.
2. Maintain Accurate Records of Awards
Create a clear and up-to-date record of all awards and classifications relevant to your business. This should include:
- The award name and its coverage details.
- Classifications that apply to each employee’s role.
- Specific entitlements such as allowances, penalty rates, and overtime.
This documentation is essential for maintaining compliance and transparency.
3. Align Employment Contracts with Awards
Each employee’s contract should:
- Specify the applicable award and their classification.
- Clearly outline their entitlements, including pay rates, leave, allowances, and any applicable penalties.
- Address situations where roles span multiple classifications or awards, explaining how pay is calculated.
4. Automate Payroll Processes for Accuracy
Using payroll software that supports multiple awards is crucial.
- Tailor Pay Rules: Set up specific rules in your system for each award to ensure correct pay calculations.
- Automate Compliance: Use features that apply appropriate penalty rates, overtime, and allowances for each role.
- Regular Updates: Keep software updated to reflect changes in award rates and conditions.
5. Train Managers and Supervisors
Educate managers about the awards and classifications relevant to their teams. This helps ensure compliance in day-to-day operations, such as rostering, approving leave, and managing overtime.
6. Conduct Regular Compliance Audits
Review your payroll and employee records regularly to ensure ongoing compliance with all applicable awards.
- Verify that employees are correctly classified.
- Check pay rates against the latest award updates.
- Address any discrepancies immediately to avoid penalties.
What Happens If You Don’t Comply with Multiple Awards?
Failing to manage multiple awards accurately can lead to:
- Underpayments or Overpayments: Either scenario can result in financial loss, employee dissatisfaction, and potential legal action.
- Fair Work Investigations: Non-compliance may trigger audits by the Fair Work Ombudsman, resulting in penalties and back payments.
- Reputational Damage: Employees may lose trust, and your business’s reputation could suffer in the marketplace.
How BAS and Balances Can Help
Managing multiple awards is a complex task, but BAS and Balances simplifies the process by providing expert payroll and compliance services.
1. Award Interpretation
We identify and apply the correct awards and classifications for all employees, ensuring compliance across your business.
2. Streamlined Payroll Systems
Our tailored payroll solutions handle the complexities of multiple awards, automating pay calculations, entitlements, and reporting for accuracy and efficiency.
3. Ongoing Compliance Management
We monitor legislative changes and update your systems as necessary, ensuring you always comply with the latest requirements.
4. Support for Dispute Resolution
In cases of employee disputes over pay or conditions, we provide expert guidance and documentation to resolve issues promptly and fairly
The BAS and Balances Difference
By partnering with BAS and Balances, you gain:
- Peace of Mind: Confidently manage multiple awards without worrying about errors or penalties.
- Time Savings: Focus on growing your business while we handle payroll complexities.
- Employee Satisfaction: Ensure your staff are paid accurately and fairly, building trust and loyalty.
Take the Stress Out of Award Management
If your business operates under multiple awards, don’t leave compliance to chance. Contact BAS and Balances today to streamline your payroll processes and protect your business from costly mistakes.
Stay compliant, save time, and build trust—partner with BAS and Balances for expert payroll and award management solutions.
