Changes to the Vehicle Repair, Services and Retail Award 2020

The Fair Work Commission has recently clarified the way some Award provisions apply, and made minor amendments to the Vehicle Repair, Services and Retail Award 2020.

What Are The Changes?

The most significant change is that the Fair Work Commission (FWC) has confirmed that from 29 May 2020 employers in the vehicle manufacturing industry and their employees will no longer be covered by the Vehicle Award. Instead, they will now be covered by the Manufacturing and Associated Industries and Occupations Award 2010 (the Manufacturing Award).

As a result, where engaged by an employer in the vehicle manufacturing industry, the following types of employees will move into the Manufacturing Award:

• Vehicle Manufacturing employees

• Drafting, Planning and Technical employees

• Supervisory employees

Further to the above mentioned award changes, the Sunday rates of pay for casual vehicle salespeople has significantly decreased. The FWC have now clarified that the casual loading should not be paid on top of the Sunday penalty. As a result, this significantly decreases the casual Sunday penalty rate of pay. Make sure you are aware of the updated Pay Rates to ensure you are meeting your minimum pay obligations.

Other changes to the Award from 29 May 2020 include:

• The Award name has changed and is now known as the Vehicle Repair, Services and Retail Award 2020.

• The definition of the “vehicle repair, services and retail industry” has been expanded to include customisation and modifying of motor vehicles, including trailerable boats and agricultural machinery.

• The definition of “plant mechanic” is no longer restricted to New South Wales, meaning it applies to plant mechanics across Australia.

• The Award allows some clauses to be varied by agreement with an individual employee. A new clause has been introduced summarising the provisions where this is possible.

• The Fair Work Commission has clarified that employees who earn above the award minimum rate must be paid this higher rate when taking annual leave.

• The list of trades for apprenticeships under the Award has been broadened, for example, signwriters are now covered.

• An employee may not be allowed to work more than 10 ordinary hours per day, unless you agree with the majority of the employees to extend this up to 12 hours, subject to meeting certain conditions. However, if your business had an already existing arrangement in place for employees to work 12 hour days or shifts on a regular basis prior to 29 May 2020, you can continue to do so.

 What Do I Need To Do?

• If you are in the vehicle manufacturing industry, you need to contact Employsure (if you have not already done so) for confirmation of any change to your Award coverage.

• Check your rates of pay to ensure you are meeting your minimum pay obligations. Particularly if you engage casual vehicle salespeople on Sundays.

• If you pay above the award, you should continue to pay employees their ordinary rate when they take paid annual leave.

• If you wish to change the ordinary hours of your employees from 10 to 12 hours, call Employsure for more information on how to proceed

How Can Employsure Help Me?

Not a client? If you need help understanding and implementing these changes, please contact Employsure on 1300 651 415 and we can give you free, initial advice on this topic. If you’d like more help implementing these changes in your business and are interested in ongoing support, Employsure can help you.

Employsure clients affected by the changes to the Vehicle Repair, Services and Retail Award 2020 (the Award ) have been notified of these changes by email. Get in contact with Employsure if you have any trouble understanding or implementing these changes.

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