Award Rates

[oFarm]

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Hi,
We have a retail store in Sydney metro area and we pay our adult staff approximately $23.74 per hour for casual work as per Fairwork award rates.

We recently discovered from a friend of friend that works reputable multinational hotel chain in based in Sydney is paying their housekeeping staff $17.50 per hour.
We also know that:
– The person who is working is over 21, so age is not a factor for underpaying.
– He is working on TFN on the hotels payroll and gets tax deducted so I’m assuming nothing illegal and no cash activities.

Which makes me think there might be a loophole that bigger corporations can overrides Fairwork award rates or may be an contractual agreement that overrides Fairwork Award Rates?

Any suggestions on how they can get away with by paying almost $5 less per hour legally?

SM

[Davejochow]

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its a different award, are they full time? Then the minimum is $17.29 an hour for full permanent cleaning staff.

[VixenBookkeeping]

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Hi ofarm,

An employer can’t contract out of legislation, so a contractual employment agreement cannot override the award rates and pay someone less than what the award states.

The difference in rates may amount to the type of award that applies to them. The type of employment arrangement would also be a factor – for instance, you stated that you employ a casual. Permanent staff would be paid different rates as they have other entitlements such as paid leave.

Skill level would also be a consideration, as most awards have different pay scales depending on skill and experience.

I don’t think you mentioned what industry you belong to, so it’s tricky to pinpoint exactly where the difference in rates come from.

Cristina

[Author]

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