Farm workers entitled to pay rise from 1 July
Farmers are being reminded that their casual, part time and full time farm workers are due a pay rise from 1 July every year, under Fair Work Australia rules governing on-farm employment conditions.
The Maddens Lawyers Employment Law team explains that a mandatory pay rise for farm employees is part of the Pastoral Award 2010, a Federal Award covering all farm employees. The Award automatically updates pay rates on 1 July every year, with pay determined by employee’s experience, qualifications and responsibilities.
“The saying is that nothing in life is certain, bar death and taxes… and you can add to that an increase in Award pay rates,” the team says. “But it’s not something farmers can be flippant about. The scope of the Award is broad, the classifications it outlines are complex, the requirement to comply is absolute and the impact of not complying can be very expensive.”
The Maddens Lawyers Employment Law team explains that the annual wage increase was set by the Fair Work Commission, and applied to a huge range of employees and farming enterprises - "workers on a dairy farm, a piggery, cattle or sheep, a cropping enterprise, even beekeeping. It's diverse and wide-reaching".
Adding to this is that the classification that determines what a worker is paid can also be quite prescriptive; they address an employee's experience and qualification, but also what they do on the farm, if they provide any of their equipment and even whether they have their own horse or dog.
The rates are based on a 38-hour-week average and mandate that any hours over this must be paid as overtime. Part time or casual workers must be paid for shifts of at least three hours, even if they only work one or two and casuals must be paid loading.
“These are the areas where we continually see farmers caught out," the team said. "And almost every time, the farmers think they are managing it by-the-book. It’s an indication of how complex the award is, rather than a reflection on how diligent local farmers are.”
The team suggested the onus on knowing and paying the correct wage rate always fell on the employer. And if classifications and pay rates weren’t up to date, any shortfall had to be met via back-payments, even if underpayment was unintentional.
Farmers need to be careful they are complying at all times because a lump sum back-payment is a harsh reality, and can’t be avoided. It doesn’t even matter if underpayment was accidental, or inadvertent. If the matter is taken to court, penalties can also be imposed on top of any back-payments.
Having worked with many farmers over the years to ensure they were compliant and across the complex requirements of the Award, the team urged operators to consult with an experienced advisor to ensure they had their staff payments in-hand.
Employers must be up to date on the current classification of their employees, and keep in mind this classification can change at any time due to the employee's past experience or tenure in the industry. Even if the employee is still doing exactly the same as what they were doing the day or week before; it's not that the Award moves the goalpost, it's that there is a lot of them and it can be hard to know which ones to look for.
Getting another perspective can be the difference between compliance - and peace of mind - and non-compliance, back payments and a hefty fine.
Looking for more information? Speak to the Maddens Lawyers Employment Law team today, call 03 5560 2000 or request a call back.
