Budget Funds Employer-Friendly Modern Award Assistance

IR E-Alert - Issue 9 (2021)

The Morrison Government's Budget has provided $10 million in "regulatory technology solutions" for employers to obtain "real-time data" on award pay and conditions from the FWC.

The funding is part of a four-year cross-portfolio "deregulation" package worth almost $136 million, which will make it easier for businesses to "get people into jobs and interact with government" (see pages 68 and 69 of Budget Paper 2).

The Budget papers say the FWC will receive $5.2 million for the work over four years, including $2 million in 2021-22.

IR Minister Michaelia Cash says the $10 million will go towards "regulatory technology solutions for modern awards obligations".

"This will support a number of initiatives, including allowing payroll and business software developers to integrate, in real-time, data on award pay and conditions from the Fair Work Commission directly into payroll and business products at a lower cost."

"This will make it easier and cheaper for business to comply with awards, pay staff correctly and give them greater confidence to hire new employees," according to Senator Cash.

It appears the work will build on the FWC's Modern Award Pay (MAP) database which gives award rates and penalties, a plan discussed in last year's tripartite consultations in the IR working groups established by former IR Minister Christian Porter.

An internal ACTU report last year said that, "supervised by the FWC and industrial parties, the MAP would provide appropriate rates and penalties payable under award to payroll software providers".

"If used correctly this database could provide comfort to employers that the rates that were being applied were correct.

"In return users would gain protection from prosecution to the extent they might be prosecuted for underpayment.
"This would not extend to an employer who applied the incorrect rate or did not use the system as intended."

The package also includes $7.2 million over three years from 2021-22 to improve the government's online Employment Contract Tool which helps small business employers to make employment contracts that comply with workplace laws.

Article originally posted on Workplace Express (11 May 2021) - Subscription required