4 yearly review of modern awards—Payment of wages

In the Fair Work Commission, the Retail and Fast Food Award Review [2024] FWC 649 was undertaken, involving the parties and the Australian government. The review addressed the common issue of the payment of wages, particularly focusing on the payments on termination model term within the outstanding modern awards. The review aimed to ensure that the awards accurately reflected the current employment practices and conditions.

The legal issues before the court included whether the current provisions of the modern awards accurately reflected the minimum standards for payment of wages, particularly in the context of terminations. The court was required to determine if the awards adequately covered the obligations of employers regarding wages and whether the model terms adequately protected employees' rights.

The court considered extensive submissions and evidence from both parties, including industry data, expert opinions, and the impact of the proposed changes on businesses and employees. It concluded that the current provisions did not sufficiently protect employees' rights to timely and accurate wage payments, particularly upon termination. The court found that the proposed changes to the modern awards would ensure that employers met their obligations more effectively, providing clearer and more comprehensive guidelines for wage payments.

As a result, the court made several amendments to the modern awards to enhance the clarity and enforceability of wage payment obligations. These amendments included specific provisions regarding the calculation and timing of wage payments upon termination, aiming to protect employees' rights more robustly. The final orders mandated the implementation of these changes within the specified timeframe, ensuring that the updated awards would come into effect as part of the next review cycle.