Apprentice and trainee wages

Wages for apprentices and trainees vary according to a number of factors. These include the number of years of school completed, years of training, the type of Australian Apprenticeship it is, and the industry or occupation in which it is based, as an example.

An apprentice or trainee is usually paid a training wage or an apprentice wage under an award, because they spend time in training.

You will generally treat the apprentice or trainee in the same way as all your other employees in relation to superannuation, workers' compensation and other entitlements or requirements.

You can vary the mix of training and working time (providing certain conditions are met), employ an apprentice or trainee on a part time basis, and specify other terms and conditions which are appropriate to the needs of your business.

To find out more about which option is best for your business, contact ABLAC on 1300 652 236

Phasing in wage rates under Modern Awards

Phasing in wage rates under Modern Awards

What are the implications for your business?

All private sector employers and employees in NSW and the ACT are now covered by the Modern Award system and the National Employment Standards. Modern Awards have wages rates, penalties and allowances which are likely to be different to those in the awards they have replaced. There are transitional arrangements which allow for the phasing in of the new entitlements.

When do I need to start
transitioning to the new
Modern Awards?

Start transitioning from the beginning of the first pay period on or after 1 July 2010.

What award provisions are
affected by transition?

The entitlements under a Modern Award covered by the ‘transitional provisions’ relate to minimum wage rates (including piece work and industry allowance); casual or part-time loadings; Saturday, Sunday, public holiday, evening or other penalties; and shift allowances/penalties. Not all awards are exactly the same with respect to transition so you should check specific transitional provisions in each of the Modern Awards.

What is the transitional amount?

Under transitional provisions, the difference between the employee’s minimum wage rate, or the percentage difference in casual/part-time loadings, penalties and shift allowances, as at 31 December 2009 and the appropriate entitlement under the Modern Award (either higher or lower) as at 1 January 2010 is referred to as the ‘transitional amount’ (in the case of minimum wage rates) or the ‘transitional percentage’ (in the case of loadings and penalties).

What is the percentage of the transitional amount (also called transitional percentage)?

From the first pay period on or after 1 July each year, until 2014, the percentage of the transitional amount or transitional percentage set out below should be deducted, or added, as the case may be, from the minimum wage rate, casual/ part-time loading or penalty in the Modern Award.

The phasing in percentages are operative from the first pay periods after:

1 July 2010 - 80%
1 July 2011 – 60%
1 July 2012 – 40%
1 July 2013 – 20%

How does this affect current registered agreements?

The minimum weekly wage rates under a Modern Award (subject to the transitional provisions) will override the minimum wage rates of a workplace agreement, including agreements made prior to the commencement of the Fair Work legislation. No other provision of a Modern Award affects an existing agreement. If you have agreements, you should check your wage rates are at least equal to the minimum rates that would have applied if the employee was employed under a Modern Award.

Do the new Modern Awards apply to sole traders and partnerships?

If you are a sole trader or a partnership in NSW that employs apprentices or trainees you are covered by the Modern Award system.

Modern Awards assistance

If you are unsure of what industrial arrangement to employ your apprentice or trainee under, we recommend you get advice:

1. If you are a member of an Industry Association, contact them in the first instance.

2. Call the Fair Work Ombudsman on 13 13 94 or refer to www.fairwork.gov.au

3. NSW Business Chamber provides a wide range of industrial and HR advice and assistance, including the Workplace Advice Line for members.

Call 13 26 96 for information
or refer to online help at
nswbusinesschamber.com.au