VICTORIAN WAGE RATE BULLETIN No. 25 ELECTRICAL, ELECTRONIC AND COMMUNICATIONS CONTRACTING AWARD 2010
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1 VICTORIAN WAGE RATE BULLETIN No. 25 ELECTRICAL, ELECTRONIC AND COMMUNICATIONS CONTRACTING AWARD 2010 Wage rates and allowances applying from the first pay period on or after 1 July 2015 (Note: these rates do not apply if you have an EBA) CHANGE Wage rate increases for electrical workers (including apprentices) in accordance with the Fair Work Commission s annual wage review Expense-related allowance increases for electrical workers (including apprentices) in accordance with CPI increases Modern Award System: Electrical, Electronic and Communications Contracting Award 2010 Australia s new Modern Award system commenced operation on 1 January The applicable wage rate and allowance tables are provided for in this bulletin. The Modern Award has been created to supplement the National Employment Standards and in doing so provides additional terms and conditions of employment for electrical workers. A copy of the Modern Award can be downloaded from NECA s website at National Employment Standards The National Employment Standards (NES) are a new set of minimum employment standards that commenced operation on 1 January The NES consists of 10 minimum terms and conditions of employment that must be provided to all employees in Australia. Importantly the NES interacts with the terms and conditions of employment set out in the Modern Award. A copy of the NES can be downloaded from NECAs website at Together the National Employment Standards (NES) and Modern Award set out the minimum terms and conditions of employment for all electrical employees in the State of Victoria. A brief description of the more commonly referred to terms is provided below. REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
2 Maximum Weekly Hours of Work: Flexible Working Arrangements: Casuals An employee cannot be required to work more than 38 hours per week and reasonable additional hours in the form of paid overtime. Employees have the right to request flexible working arrangements including seeking variations to hours of work, overtime, penalty and allowance rates and leave loading. Strict rules apply so advice should be sought from NECA prior to entering into any formal arrangements with an employee. Casual employees receive a 25% loading on the relevant hourly rate as of 1 July Importantly, after a period of 6 months service with an employer a casual employee is entitled to convert to either full time or part time employment. Once 6 months has been completed an employer must within 4 weeks of such date provide written notice to casual employees of their ability to convert to full or part time employment. The casual employee can then either accept or decline conversion, however must do so within 4 weeks of receiving the written notice from the employer. A casual employee who provides no response within the 4 week period is deemed to have declined an offer of conversion Overtime: Monday to Friday: time and a half for the first 2 hours, doubletime thereafter. Saturday: time and a half for the first 2 hours, double-time thereafter - minimum payment of 4 hours. Sunday: double time all day - minimum payment of 4 hours. Public Holidays: double time and a half all day - minimum payment of 4 hours. All Purpose Rate of Pay: Annual Leave: Each day is stand alone for the purpose of calculating overtime. The all purpose rate of pay is used for calculating payments for overtime, paid leave, annual leave loading, public holidays and termination payments. The gross all purpose rate of pay is readily identified in the applicable wage rate tables of this bulletin. The all purpose rate of pay includes the A Grade licence allowance, the industry allowance, the tool allowance and casual loading (if applicable). Full time employees are entitled to 4 weeks annual leave with pay for every 12 months of service plus 17.5% leave loading (including apprentices). Employees who work as shift workers are entitled to 1 additional week of annual leave calculated on a pro-rata basis (i.e. based upon the amount of shift work they perform). REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
3 A full time employee accrues annual leave at the rate of hours per week for every week of continuous service. A part time employee s annual leave entitlement and payment is calculated on a pro-rata basis of per hour. Annual leave should be paid at the employee s gross all purpose rate of pay. Personal/Carer s Leave: Personal/carer s leave is a combination of paid sick leave for personal illness or injury and paid or unpaid carer s leave for the caring of an employee s immediate family member or member of the employee s household. An employee is entitled to a combined total of 10 days paid personal/carer s leave per annum. Employees are also entitled to an additional 2 days unpaid carer s leave on each occasion but only in circumstances where they have already used up all of their paid carer s leave entitlement. A full time employee accrues personal/carer s leave at the rate of hours per week for each week of continuous service. A part time employee s personal/carer s leave entitlement and payment is calculated on a pro-rata basis of per hour. Personal/carer s leave should be paid at the employee s gross all purpose rate of pay. Compassionate Leave: Compassionate leave is paid leave taken for the purposes of spending time with an employee s immediate family member or member of the employee s household who has a life threatening illness or injury and/or after the death of such a person. Community Service Leave: An employee is entitled to 2 days paid compassionate leave for each occasion that arises. There may be more than one occasion during any twelve month period. This entitlement is additional to the 10 days paid personal/carer s leave entitlement. Community service is identified as either Jury Service or a Voluntary Emergency Management activity such as Fire Fighting (CFA) Civil Defence or Rescue (SES). An employee who engages in such activities is entitled to be absent from work from the time the activity commences until it ceases, however, the duration of the absence must be reasonable. An employee must provide to an employer notice of the intended absence as soon as practicable and must also provide evidence of the absence relating to the community service being undertaken. An employee is not entitled to wage payment during a period of community service leave other than for Jury Service. REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
4 Termination of Employment: If terminating an employee s employment, the notice periods required, or payments in lieu of are as follows: Employee s Period of Continuous Service Not more than 1 year More than 1 year but not more than 3 years More than 3 years but not more than 5 years More than 5 years If the employee is over 45 years of age and has at least 2 years continuous service Length of notice 1 week 2 weeks 3 weeks 4 weeks 1 additional week Termination of employment, unless for negligence or serious misconduct, should also involve a process of counselling and warnings. The notice of termination to be provided by an employee is the same as that required of an employer, except there is no requirement for an employee to provide additional notice based on their age. If an employee fails to provide the required period of notice then an employer may withhold the payment of monies due for the period of notice that remains outstanding. Redundancy: The NES introduces a new redundancy payment scale which is additional to the notice period scale above. Importantly, there is no redundancy entitlement available to an employee if the employer has less than 15 employees immediately before the termination. From 1 January 2010 the following scale applies: Employee s Period of Continuous Service At least 1 year but less than 2 years At least 2 years but less than 3 years At least 3 years but less than 4 years At least 4 years but less than 5 years At least 5 years but less than 6 years At least 6 years but less than 7 years At least 7 years but less than 8 years At least 8 years but less than 9 years At least 9 years but less than 10 years At least 10 years Redundancy Entitlement 4 weeks 6 weeks 7 weeks 8 weeks 10 weeks 11 weeks 13 weeks 14 weeks 16 weeks 12 weeks* Fair Work Information Statement: *The reason for a reduction to 12 weeks after 10 years is because an employee receives the benefit of a long service leave payment. If continuous service is less than a full year at any of the year levels referred to above, then a pro rata payment will apply. All outstanding entitlements (annual leave, payment in lieu of notice, redundancy pay etc.) are to be paid out on the day termination of employment takes effect. The Fair Work Information Statement provides employees with information on workplace matters including the National Employment Standards, Modern Awards, agreement making, freedom of association, the role of Fair Work Commission and the Fair Work Ombudsman, termination of employment, REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
5 individual flexibility arrangements and right of entry (including the protection of personal information by privacy laws). The Statement must be provided to any new employee of your business who commences employment on or after 1 January Nothing precludes you from distributing a copy of the Statement to your existing workforce. A copy of the Statement can be downloaded from NECAs website at For more detailed information regarding the National Employment Standards and the Modern Award please refer to the NECA website at or alternatively contact NECA on OTHER REQUIREMENTS: Long Service Leave: From 1 July 2001, employees can gain access to pro rata long service leave after 7 years continuous service. This means workers can take 9.1 weeks leave on full pay after 7 years of service in the industry and with the agreement of their employer. There has been an increase in benefit accrual rate to 13 weeks after 10 years for service after 1 July The previous accrual was 13 weeks after 15 years of service. NECA members must cover electrical employees long service leave entitlements through the industry portable fund CoINVEST, 478 Albert Street, East Melbourne, phone or Annual leave and sick leave will continue to accrue whilst an employee is on long service leave. RDO s and public holidays are absorbed (no extra days). If an employee is sick whilst on leave, he/she cannot use accrued sick leave in lieu of long service leave. A contribution rate of 2.7% of normal earnings has applied since 1 July Normal earnings exclude overtime, travel and fares and leave loading. The contribution can be paid in advance or after each 4 months. You are encouraged to pay electronically as the calculation is much easier than manually. Information is available on the CoINVEST website, Superannuation: The employer contribution rate is 9.5% of Ordinary Time Earnings (OTE), as at 1 July The Australian Tax Office has advised NECA that allowances payable for ordinary time (i.e. non-expense related allowances), are to be included in the calculation of 9.5% OTE. An A Grade s 9.5% OTE will include, for example : Travel Time ance $5.78 x 5 = $28.90 ances (where applicable) $3.37 x 5 = $16.85 Gross All Purpose wage (EW5) A Grade $ Total $ % of OTE = $84.06 REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
6 ance of $18.80 (start and / or finish on the job using own vehicle within 50km radius) is deemed to be an expense allowance and thus not included when calculating 9.5% OTE). When working on site, site allowances paid during ordinary time are also included when calculating superannuation. To register for superannuation with CBUS (the electrical industry superannuation plan) phone Choice of Superannuation Fund applies from 1 July See for details. Travel Time: ance: All employees, except Apprentices, required to start and/or finish work on the site, shall be paid a travel time allowance of $5.78 per day for each day on which they present themselves for work. Apprentices shall receive a travel time allowance at the rate set out in the Apprentice wage schedule. The allowance is to be paid for Rostered Days Off and in the case of Apprentices, but not payable the days on which they attend trade school, for sick leave, annual leave or public holidays. As it is an allowance received during ordinary time, it should also be included in calculations for superannuation contributions. All employees, including Apprentices, required to start and/or finish work on the site and the work site is between 0-50 km from the workshop or registered office are entitled to fares allowance as follows: (a) If the employee PROVIDES OWN TRANSPORT $18.80 per day (b) If the employee is PROVIDED WITH TRANSPORT free of charge $3.37 per day Excess travelling time as well as the above mentioned fares allowance is payable if the work site is beyond 50 km from the workshop or registered office. Travel Time $5.78 $18.80 $3.37 Start and or finish on the job using own vehicle Yes Yes No Start and or finish on the job provided with transport Yes No Yes Start and finish at the workshop No No No RDO s Yes No No Apprentices at trade school No No No Annual leave (including proportionate leave) No No No Public Holidays No No No Sick leave No No No Notice period on termination No No No Superannuation Yes No Yes REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
7 Electrical, Electronic and Communications Contracting Award 2010 BULLETIN NO. 25 Award wage rates applicable to those electrical workers employed by NECA members from 1 July 2015 Grade Minimum Week Pay Tool Industry Total W/Rate A Grade Lic Gross All P/Rate Hourly All P/Rate Casual Rate 25% Travel 1 2 Grade Grade Grade Grade Grade B Grade A Grade Grade Grade Grade Grade Grade Where the job site is up to 50 km from the registered office and the employee starts and / or finishes on site and provides own transport, $18.80 per day applies. Not paid when an employee starts and finishes at the office. 2 Where the job site is up to 50 km from the registered office and the employee starts and / or finishes on site and is provided with transport, $3.37 per day applies. Not paid when an employee starts and finishes at the office. REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
8 Electrical, Electronic and Communications Contracting Award 2010 BULLETIN NO. 25 Apprentice award wage rates applicable to those apprentices who commenced their apprenticeship prior to 31 December Wage Rates are applicable from 1 July Relativity Minimum Weekly Payment Tool A Grade Lic Industry Gross All Purpose W/Rate Hourly Rate Travel st 40% nd 52% rd 70% th 82% Apprentices required to Start and / or finish on site, providing own transport, and the work site is between 0-50 km from the workshop or registered office are entitled to fares allowance of $18.80 for each day that they work on site. Not paid when the employee starts and finishes at the office. 2 Apprentices required to Start and / or finish on site, provided with transport, and the work site is between 0-50 km from the workshop or registered office are entitled to fares allowance of $3.37 for each day that they work on site. Not paid when the employee starts and finishes at the office. REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
9 Electrical, Electronic and Communications Contracting Award 2010 BULLETIN NO. 25 Apprentice award wage rates applicable to apprentices (other than adults) who commenced their apprenticeship on or after 1 January 2014 and have completed 12. Wage Rates are applicable from 1 July Completed 12 (Relativity) Minimum Weekly Payment Tool A Grade Lic Industry Gross All Purpose W/Rate Hourly Rate Travel st 55% nd 65% rd 70% th 82% REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
10 Electrical, Electronic and Communications Contracting Award 2010 BULLETIN NO. 25 Apprentice award wage rates applicable to apprentices (other than adults) who commenced their apprenticeship on or after 1 January 2014 and have NOT completed 12. Wage Rates are applicable from 1 July Completed 12 (Relativity) Minimum Weekly Payment Tool A Grade Lic Industry Gross All Purpose W/Rate Hourly Rate Travel st 50% nd 60% rd 70% th 82% REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
11 Electrical, Electronic and Communications Contracting Award 2010 BULLETIN NO. 25 Apprentice award wage rates applicable to adult apprentices who commenced their apprenticeship on or after 1 January Wage Rates are applicable from 1 July Relativity Minimum Weekly Payment Tool A Grade Lic Industry Gross All Purpose W/Rate Hourly Rate Travel st 80% nd EW rd EW th EW New apprentice wage rates may apply to employers with an Enterprise Agreement Section 206 of the Fair Work Act 2009 requires that the base rate of pay under an enterprise agreement must not be less than the modern award rate of pay. Therefore apprentice rates of pay that are contained within Enterprise Agreements should be checked to determine whether the new award rates that apply to apprentices commencing apprenticeships on or after 1 January 2014 will be higher. Employers will be required to pay the higher of either the Enterprise agreement or modern award rates that apply to apprentices. This will also be the case where the enterprise agreement does not provide for adult apprentice rates of pay. In such cases, the adult apprentice rates of pay as shown in (3) above will apply to apprentices who are 21 years of age or older at the time of commencing the apprenticeship on or after 1 January 2014 should the award rates be higher than those contained in the enterprise agreement. REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
12 Electrical, Electronic and Communications Contracting Award 2010 BULLETIN NO. 25 ALL PURPOSE ALLOWANCES payable to all employees from 1 July 2015 Clause % of EW5 $ 17.2 (b) Tool ance Per Week (c) Licence ance Per Week 3.6% (d) Leading Hands ance Per Week In charge of: 3-10 employees 4.3% * employees 6.0% *45.89 More than % * (f) Electrical Distribution & Tree Clearance ance 7.7% per week 17.2 (a) Industry ance Per Week 3.7% (e) Nominee ance Per week 9.2% SPECIAL ALLOWANCES payable to all employees from 1 July 2015 Clause $ 17.4(a) (iii) Multi-storey ance per hour 0-15 floor 2.6% floor 3.2% floor 4.9% floor 6.2% 1.25 More than 60 floor 7.9% (c) (i) Towers ance Per Hour 3.2% Availability for Duty Per Week 8.8% (b) First Aid ance per week 2.1% (b) (i) Rate for order materials per week 2.0% (b) (ii) Rate for order materials per day 0.4% (a) (i) Meal ance (c) Travel Time ance per day (d) Start / Finish on job 17.5 (d) (i) Job Site up to 50km from office (d) (ii) Job Site > 50km allowance + travel time (d) (iii) Provided with transport (a) (iii) Meals while travelling (f) Motor Vehicle ance per km (c) (i) Compensation for loss of tools *The leading hand allowance amounts are the minimum payable and increase in accordance with the provisions of award clause 17.2(d). REF\N\(G) EMPLOYEE RELATIONS\(20\ LEGISLATION & AWARDS\2.2 NAT ELECTRICAL AWARD\2.2.1 ECIA WAGE UPDATES\UPDATE NO
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