A general overview of the Miscellaneous Award
The Miscellaneous Award 2020 applies to a broad range of occupations not covered by other specific industry awards. It serves as a safety net for employees in roles that don’t fall under more specific modern awards, ensuring they receive fair wages and conditions.
In this article, you'll find a summarised overview of the essential elements of the Miscellaneous Award, including coverage, employment types, rostering guidelines, pay rates, allowances, superannuation, and leave entitlements. Having oversight of these provisions is important for meeting legal obligations and also for supporting fair and consistent employment practices across your organisation.
For those seeking more detailed information, you’ll find links throughout this article directing you to in-depth articles on each topic.
Note: The information provided in this article is accurate as of 12/08/2024. As award conditions and rates are subject to change, please refer to the latest version of the Miscellaneous Award 2020 for the most current information.
Miscellaneous Award coverage
The Miscellaneous Award applies to certain employees in roles that aren’t covered by any other modern award, specifically those in non-specialised, general support, or broad training roles. Here’s a general overview of the award coverage:
Who's covered
- Non-specialised roles: Includes utility workers handling general maintenance and cleaning, support staff in small enterprises with fluid administrative duties, and non-trade specific assistants providing basic clerical or general assistance without formal qualifications.
- On-hire employees: Covers general labourers and temporary office assistants employed by labour-hire companies, working in roles that don’t fit under other awards.
- Apprentices and trainees: Applies to those in broad training programs or administrative roles not covered by trade-specific or clerical awards.
Who isn't covered
- Managerial employees and professional employees: Such as accountants, HR professionals, and information technology specialists.
- Employees excluded by the Fair Work Act: Those covered by enterprise agreements or specific executive roles.
- Public sector employees: Those covered by state-specific awards or agreements.
Practical example: Sarah works as a utility worker at a small community centre, handling various tasks like minor repairs, cleaning, and setting up for events. As her role doesn’t fall under any specific industry award, she's covered by the Miscellaneous Award, ensuring she receives fair wages and working conditions.
Employment types under the Miscellaneous Award
The Miscellaneous Award covers three main employment types:
- Full-time: Standard weekly hours with ongoing contracts, offering stability.
- Part-time: Fewer hours than full-time, with proportional entitlements based on a fixed schedule.
- Casual: No guaranteed hours, compensated with a higher hourly rate due to the irregular nature of the work.
Miscellaneous Award ordinary hours
The Miscellaneous Award outlines the ordinary hours of work for different employment types, ensuring clarity and compliance. Employees' ordinary time should be managed by human resources according to these guidelines to maintain fair and consistent working conditions.
The guidelines note, for example, that full-time employees typically work 38 hours per week, spread over a maximum of six days, and part-time employees work less than 38 hours per week, with their hours agreed upon in advance and aligned with a regular schedule. It also notes, amongst other things, that casual employees must be engaged or paid for at least two consecutive hours per shift to ensure fair compensation for their time.
Rostering under the Miscellaneous Award
The Miscellaneous Award sets out clear guidelines for managing employee rosters to ensure fairness and compliance. For instance, there's a requirement for employers to provide regular and predictable hours, with fixed starting and finishing times. Employees must receive at least seven days' notice for any changes to their roster.
Additionally, this modern award allows for mutual flexibility, where employers and employees can agree on adjustments to work arrangements. Employees also have the right to request flexible working arrangements for personal reasons, which employers must consider reasonably.
The award mandates that employees who work more than five hours in a shift are entitled to a 30-minute unpaid meal break.
Learn more about Miscellaneous Award employment types, ordinary hours, and rostering
Miscellaneous Award pay rates
Ensuring fair compensation is a key aspect of the Miscellaneous Award. The award sets out a minimum wage for various classifications, such as adult employees, juniors, and apprentices. For instance, as of the July 2024 update, a Level 2 adult employee earns $24.08 per hour. The award also specifies rates for higher duties, supported wages, and traineeships.
An employer must pay an employee's wages for all hours worked, at least monthly, via cash, cheque, or electronic transfer. Payslips must detail all allowances and deductions. When an employee's employment terminates, the employer must pay any outstanding wages within seven days.
See full list of Miscellaneous Award pay rates
Allowances under the Miscellaneous Award
The Miscellaneous Award ensures that employees are fairly compensated with allowances for specific duties and any work-related expenses they incur. For example, employees with appropriate first aid qualifications who are appointed to perform first aid duties are entitled to a first aid allowance of $19.90 per week, on top of their relevant adult minimum rate.
Other key allowances include a leading hand allowance for those in charge of teams, meal allowances for overtime work, and vehicle allowances for using personal vehicles for business purposes. Employees are also reimbursed for any reasonable expenses incurred at the direction of the employer.
See full list of Miscellaneous Award allowances
Miscellaneous Award superannuation
Superannuation is a key component of employee compensation under the Miscellaneous Award. The current superannuation guarantee rate is 11.5% of an employee's ordinary time earnings (OTE). Employers must make superannuation contributions for employees who are over 18 years old or under 18 and working more than 30 hours a week. This applies to full-time, part-time, and casual employees.
Employees typically have the option to choose their super fund; if they don’t, the employer’s nominated fund is used. Employers must ensure accurate contributions to avoid penalties. Employees can also make additional contributions from their wages. Contributions generally continue during paid leave and certain work-related absences.
Miscellaneous Award overtime and penalty rates
Overtime and penalty rates under the Miscellaneous Award are designed to ensure employees are fairly compensated for working beyond their regular hours or during unsociable hours. These rates recognise the additional effort and inconvenience of working overtime or outside standard work hours.
Overtime rates
Under the Miscellaneous Award, overtime is paid for any work beyond the standard 38-hour workweek or agreed-upon hours for part-time employees. For example, for the first three hours of overtime, an employee should be paid 150% of their regular hourly rate (time and a half).
Practical example: Jane, a full-time employee, works an extra three hours one week. For those three hours, she earns 150% of her regular hourly rate. If her regular rate is $25/hour, her total overtime pay for those three hours would be $112.50.
Employees can agree to take time off instead of receiving overtime pay, using the time within six months. Additionally, if employees don’t receive a ten-hour rest period after overtime, employers must pay them double time until they get a break.
Penalty rates
Penalty rates under the Miscellaneous Award apply to work performed outside of ordinary hours that aren’t classified as overtime. For example, work performed on a Saturday by a casual employee is typically paid at 145% of their regular hourly rate.
Practical example: Tom, a casual employee, works five hours on a Saturday. Since Saturday work is paid at 145% of his regular hourly rate, and his rate is $25/hour, he earns $181.25 for those five hours.
Learn more about Miscellaneous Award overtime and penalty rates
Miscellaneous Award leave entitlements and public holidays
The Miscellaneous Award provides a comprehensive range of leave entitlements and public holiday provisions, ensuring employees are supported in various aspects of their work and personal lives. These entitlements, aligned with national employment standards, include paid annual leave, supportive leave options, and specific rights related to public holidays.
Annual leave
Full-time employees receive four weeks of paid annual leave per year, with part-time employees receiving a pro-rata amount. Employees with excessive leave accruals (more than eight weeks) should work with their employers to reduce their balance. If no agreement is reached, the employer may direct the employee to take leave, ensuring that the employee's remaining accrued entitlement is at least six weeks.
Other types of leave
In addition to annual leave, the award provides for other types of leave, such as personal/carer’s leave, which grants full-time employees 10 days of paid leave per year. Employees are also entitled to two days of compassionate leave for each occasion, and up to 12 months of unpaid parental leave, with the possibility to request an additional 12 months.
Community service leave allows for unpaid time off for activities like jury duty or emergency management, while employees experiencing domestic violence are entitled to 10 days of unpaid leave per year for necessary support.
Public holidays
Employees (except casuals) are entitled to a paid day off on public holidays as per the national employment standards. Employers can request an employee to work on a public holiday if the request is reasonable, and both the employee and employer must consider reasonable business grounds when agreeing on substituting a public holiday.
Key considerations for the Miscellaneous Award
The Miscellaneous Award coverage encompasses a wide range of roles that don't fit neatly into more specific industry or job-related modern awards. While this broad coverage offers flexibility, it also brings challenges that can result in unintended non-compliance. Here are some key considerations to keep in mind:
- Understanding award coverage: A common misconception is that roles under the Miscellaneous Award are less regulated or come with fewer entitlements because of the broad, non-specific nature of the award. This often leads employers to believe that these roles aren't fully covered by the stringent conditions applied to more specific industry awards.
Why it matters: This misunderstanding can cause employers to overlook critical entitlements, such as overtime and penalty rates, leading to underpayment and significant financial liabilities. Additionally, failing to recognise the full scope of the award can result in decreased employee engagement and satisfaction, as employees may feel undervalued or improperly compensated.
- Ensuring compliance with pay rates: Some employers mistakenly believe that the flexibility of the Miscellaneous Award gives them leeway to set pay rates without strict adherence to award standards. This perception can lead to a relaxed approach to payroll, with employers not fully considering the required pay scales.
Why it matters: Neglecting to follow the correct pay rates can lead to underpayment, triggering large back payments and potential legal action. This not only creates financial and legal risks, but also damages the company’s reputation and employee trust.
Simplify Miscellaneous Award compliance with Rippling
Managing Miscellaneous Award compliance can be challenging because of its broad coverage, detailed pay structures, and complex leave entitlements. Rippling’s unified platform simplifies this process, helping your business stay compliant and ensuring fair treatment of employees across all aspects of the award. Key features include:
Comprehensive coverage and compliance tools
Rippling’s platform offers custom-built alerts to help keep you updated and on top of award compliance. With detailed reporting, audit support, and customisable templates, you can ensure that your business remains compliant with all facets of the Miscellaneous Award.
Streamlined time, attendance, and leave management
With features like time and attendance tracking and leave management, Rippling ensures that all processes align with the award’s stipulations, reducing manual work and consequent errors, and enhancing operational efficiency.
Simplified payroll, overtime, and superannuation
Rippling simplifies the complexities of payroll, including overtime and superannuation compliance. The platform automatically adjusts pay, overtime, and penalties according to award requirements, and calculates superannuation contributions accurately.
Real-time insights and integration
Rippling’s seamless integration with existing systems ensures accurate financial management, offering peace of mind and operational flow improvements.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
