FWC 4 year review splits Building Award

FWC - splits Award.png

FWC 4-year review splits Building Award

The Fair Work Commission (FWC) has completed its 4-year review of various Modern awards including the Building and Construction General On-Site Award 2010, resulting in a significant number of changes to existing award provisions. Perhaps the most notable change is the replacement of the existing Industry Allowance with two percentage-based allowances, resulting in new and slightly lower wage rates for what is defined as ‘Residential Construction Work’.

Prior to the review, all employees were entitled to the same Industry Allowance quantum which formed part of the employee’s ordinary hourly rate. The new Award mandates that the following industry allowances must be paid, in addition to the employee’s weekly, for work in each separate sector:

(a) General building and construction industry, civil construction industry and metal and engineering construction industry—an allowance of 6% of the weekly standard rate;

(b) Residential building and construction industry—an allowance of 4.8% of the weekly standard rate.

The definition of ‘residential building and construction industry’ involves relevant tasks undertaken in relation to a single occupancy or dual
occupancy residential building, which is a multistorey building that is less than 5 storeys.

The new provisions take effect from the first pay period on or after the 1st of July 2020.

Part of the introduction of the two new rates is the absorption and subsequent deletion of a large number of existing historical allowances. While the majority of these allowances have little practical application, it is important for employers to check their payroll systems and ensure that they are deleted to avoid any chance of facilitating a `double dip’ for employees.

The list of deleted allowances can be obtained on request.

For queries about Building and Construction General On-Site Award 2010 provisions or other employment questions, please contact Dean Cameron at Workforce Advisory Lawyers – We Know Employment Law on 0417 622 178 or via email to dean.cameron@workforceadvisory.com.au

Disclaimer: This information is provided as general advice on workplace relations and employment law. It does not constitute legal advice, and it is always advisable to seek further information regarding specific workplace issues. Liability limited by a scheme approved under professional standards legislation.

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