Minimum wages in construction industry modern awards will increase by 1.75 per cent from the first full pay period starting on or after 1 November 2020.
These awards include:

  • Building and Construction General On-site Award 2010
  • Electrical, Electronic and Communications Contracting Award 2010
  • Plumbing and Fire Sprinklers Award 2010
  • Joinery and Building Trades Award 2010
  • Mobile Crane Hiring Award 2010

Employers should familiarise themselves with the industrial instrument that applies to their workers to ensure that employees are being paid correctly.

We are here to help

For help understanding your wages obligations in the building and construction industry, visit our wages and entitlements webpage or call our hotline on 1800 003 338.

Do you think you’re being underpaid?

If you believe you’re being underpaid, we can help. To reach us:

Modern Award – payment on termination clause amendments

As part of the Modern Award Review, the Fair Work Commission has varied the payment of wages on termination clauses in the building and construction industry awards.

Building Award
For the Building and Construction Award the changes apply from the first full pay period starting on or after 13 October 2020.

What are the changes for the Building Award?
When an employee’s employment ends, employers need to pay the employee the following:

  • any outstanding wages for work the employee performed up to the end of their employment, including RDOs; and
  • all other entitlements due to the employee under the Building Award and the National Employment Standards (NES), for example annual leave.

Where notice of termination is given by an employee or employer under the NES or the Building Award, the employee’s outstanding wages must be paid:

  • on their last day of employment, or
  • where that is not practicable, within 2 working days of the employment ending and payment can be made by registered post or electronic funds transfer (EFT) if the employee is normally paid by EFT.

Where notice of termination is not given by an employee or employer under either the Building Award or the NES, the employee’s outstanding wages must be paid:

  • on their last day of employment, or
  • by EFT within 7 days of the employment ending.

All other entitlements that need to be paid out on termination (such as accrued annual leave), must be paid:

  • on the employee’s last day of employment, or
  • by EFT within 7 days of the employment ending.

Construction Awards
Employers should carefully read the amended sections contained in the Building Award, Electrical Award, Mobile Crane Award and the Plumbing Award to ensure they are correctly making payment of wages on termination. Each Award has slightly different requirements, so please read them carefully.

Employers should also note that on 13 November 2020, the varied Electrical Award will come into operation. Follow the link to read the full Determination relating to the varied Electrical Award on the Fair Work Commission website.

E-Alert
19 October 2020

Share