Understanding the different levels under the Clerks Award is one of the biggest challenges for employers. The primary reason for this is that job titles and duties are always changing and this makes it difficult for employers to stay up to date.
Nevertheless, arguing that the Awards are too complex is not a valid defence if the Fair Work Ombudsman contacts you to investigate underpayment. It is vital that every Australian employer takes payroll compliance seriously. More broadly, demonstrating compliance with the Clerks Award has the potential to bolster employee satisfaction and boost productivity within your business.
How do the different levels work?
The different levels under the Clerks Award require careful consideration. The team at Fairtime have tried to simplify the process of understanding Clerks Award levels using this simple table set out below:
| Characteristics | Comparable Duties | |
| Level 1 | limited relevant experience, work always supervised. Routine work mostly | fundamental switchboard/reception, maintaining basic records, handling mail, dealing with accounts, basic keyboard/computer knowledge |
| Level 2 | sufficient experience, working under general direction. Exercising limited judgment | Reception basics plus some interpersonal skills, operation of a wider range of business equipment, some word processing, spreadsheet use |
| Level 3 | specialised or non-standard work features exercising initiative, discretion and judgment. Provides some direction to lower level staff | involvement in business banking processes, providing specialised advice on company products and services, responding to client enquiries using interpersonal skills, advanced word processing |
| Level 4 | has industry specific knowledge & provides advice to the organisation or clients. Requires minimal supervision. Responsible for co-ordination of lower level staff | secretarial and executive support, maintaining diaries, taking meeting minutes, answering executive correspondence, financial banking duties incl tax, payroll, super, workers comp, use of software/ computer systems |
| Level 5 | has worked or studied in a relevant field achieving specialist knowledge on a range of subjects. Responsible for other staff in regards to scheduling work, supervising or training. | understanding of the company objectives, potential areas of growth, trends/ industry, use of a wide range of complex computer software, providing reports to management in a range of fields |
How should employers interpret the Clerks Award?
Consulting the above table makes the process of assigning a pay rate to your next Clerks Award hire much easier. In saying that, deciding on a Clerks Award level for an employee forms only a small part of your business’ payroll compliance obligations. For example, have you considered how your employment contract communicates the Clerks Award level to your employee? Also once your employee starts work, how will you ensure they are paid at the correct rate each and every pay cycle? All of your new hiring processes should make payroll compliance the highest priority. The penalties for underpayment may cripple your business.
When does Overtime apply under the Clerks Award?
An employer must pay an employee at the overtime rate for any hours worked at the direction of the employer:
(a) in excess of the ordinary weekly hours; or
(b) in excess of 10 ordinary hours on any one day, excluding unpaid meal breaks; or
(c) outside the spread of ordinary hours; or
(d) for overtime worked on a rostered day off that is not substituted or banked; or
(e) for part-time employees, in excess of the number of ordinary hours that the employee has
agreed to work.
Overtime rates are explained in this handy table:
| Overtime Hours worked per day | Overtime rate Full-time and part-time employees | Overtime rate Casual employees |
| % of minimum hourly rate | % of minimum hourly rate | |
| Monday to Saturday—first 2 hours | 150 | 175 |
| Monday to Saturday—after 2 hours | 200 | 225 |
| Sunday—all day | 200 | 225 |
| Public holiday—all day | 250 | 275 |
What about allowances? When do they apply?
There are a number of different allowances that may apply to Clerks Award employees. These include:
- First Aid – if the worker has current current first aid qualifications and training, then the employer must pay a weekly allowance
- Clothing & Footwear – where a uniform is purchased the employee should be reimbursed for the cost. Where a certain type of footwear is required this must be supplied or paid for by the employer. Where a uniform is worn the laundry costs associated with its upkeep require the payment of an allowance for all of full-time, part-time and casual Clerks Award employees
- Meal – payable when the employee works overtime of more than 1.5 hours or the employer can supply the meal in the alternative
- Vehicle – payable when the employee uses their own vehicle in performing work duties;
- Living Away from Home – applies when work is carried out at a location that makes it necessary for the employee to stay overnight away from the normal residence
To read more about the allowances and the specific rates that apply, you can request a Clerks Award rates below.
How does Fair Work monitor compliance with the Clerks Award?
Businesses who employ staff under a Modern Award must have a payroll system in place that includes:
- a timesheet submitted by every Award employee
- compliance reports conducted annually (at a minimum) to demonstrate compliance with the Award
- a mechanism to provide top up payments to staff if ever non-compliance / underpayment is detected
Fair Work has the power to undertake spot checks of any Australian business. They typically target two or three industry verticals each year. Employers who do not have effective systems in place are typically issued with a Compliance Notice as a first step. This kick starts a process that can have severe consequences for a Clerks Award employer culminating in heavy fines or even jail time.
How often do pay rates change?
Rates tend to change yearly and new rates take effect most often on 1 July. It’s important that your business be across Award changes because ignoring them could lead to the underpayment of your employees.
Regularly checking back on Award updates can be time consuming and not the highest priority for you as a business owner. Fairtime software helps save you time by automating payroll compliance under most Modern Awards.
How can Fairtime help my business manage staff under the Clerks Award?
If you employ staff under the Clerks Award, Fairtime software will help you:
- – eliminate the risk of pay rate errors by automating payroll compliance; and
- – save time and money every pay cycle. With Fairtime there is no more manually counting up of hours. We convert your timesheet into a payslip with one click!
