The Clerks Private Sector Award (commonly known as the ‘Clerks Award’ or ‘Clerical Award’) sets out the minimum terms and conditions, working hours, leave entitlements and other conditions of employment by which Australian businesses must engage their clerical and admin staff.
The Clerks Private Sector Award is reviewed periodically by the Fair Work Commission to ensure that economic changes are accounted for. Generally, new rates come into effect on 1 July each year.
The Modern Award system is a national program covering workers in any and all of:
- New South Wales
- Victoria
- Queensland
- South Australia
- Western Australia
- Tasmania
- Northern Territory
- Australian Capital Territory (ACT)
Who does the Clerks Private Sector Award apply to?
The Clerks Private Sector Award is applicable to a variety of industries. The definition of ‘Clerical Work” set out in the Award indicates that anyone performing these types of duties may be covered:
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What are some of the key sections that employers need to know?
a) is engaged to work 38 ordinary hours per week; or
b) is engaged to work the number of ordinary hours (fewer than 38) per week that is considered full-time at the workplace by the employer.
Part Time applies to someone who is engaged to work for fewer ordinary hours than 38 per week on a reasonably predictable basis.Casual applies to someone who is offered a job and the offer does not include a firm advance commitment that the work will continue indefinitely with an agreed pattern of work. They accept the offer knowing that there is no firm advance commitment and become a permanent employee.Breaks are also an important part of the Award and this handy table explains how they should apply:Hours worked | Breaks |
More than 3 but not more than 8 ordinary hours | One 10 minute paid rest break (to be taken at a time determined by the employer) |
More than 8 ordinary hours | Two 10 minute paid rest breaks (to be taken at a time determined by the employer) |
More than 4 hours overtime on a Saturday morning | One 10 minute paid rest break |
(a) taken within 5 hours of starting the shift; and
(b) counted as time worked.
Public Holidays are another important section under the Award. Public holidays entitlements are provided for in the NES. Where an employee works on a public holiday they will be paid in accordance with Public Holiday rates set out in the Award. You can read all about pay rates in our separate blog post.I am an employer, is the Clerks Private Sector Award right for my employees?
As an employer your staff might be employed in roles which cover some of the duties listed in the Clerks Private Sector Award as listed above. An important point to note about the Award is that whilst job duties are relevant, the employee’s job title can also determine whether or not this particular Award applies.
We can use an example to help assist our understanding. Say we have two employees doing administrative work which includes some of the the duties listed in the table above. One works for a Law Firm and the other works for a Bank.
The performance of these duties does not necessarily mean that the Clerks Private Sector Award would be the applicable Award. The key to deciphering what Modern Award/s are applicable to your employees is to first research whether there is a specific Award which applies to your industry.
In the case of our example both employees have a relevant industry award other than the Clerks Private Sector Award. Namely, the Legal Services Award and the Banking, Finance and Insurance Award. Therefore we know that the Clerks Private Sector Award does not apply.
Additionally, if you as the employer fail to comply with the terms and conditions of the Clerks Private Sector Award, your employees could make a complaint to the Fair Work Ombudsman who is the responsible entity for enforcing the terms and conditions of the Award. Recent changes announced by the Federal government mean that employers who do not comply with an Award by underpaying their staff face harsh penalties.
What job titles tend to be relevant under the Clerks Private Sector Award?
In our experience, individuals with these types of job titles tend to fall under the Award:
- Accounts Clerk
- Accounts Payable
- Inventory Clerk
- Personal Assistant
- Executive Assistant
- Administrative Officer
- Office Manager
It’s worth noting that this is not an exclusive list. Your industry is also going to influence what Award applies to your employees.
With so many rules, how do I ensure my business is compliant with the Clerks Private Sector Award?
All Australian employers must be aware of their payroll compliance obligations under the Modern Award system. Ignoring the rules and regulations contained in the Clerks Private Sector Award is not an option and poses a significant threat to your business both from a commercial point of view, however, also it may damage its reputation. The Fair Work Ombudsman has significant powers to enforce penalties against businesses who underpay their employees.
How does Fairtime help Australian employers with Award compliance?
If you or your business needs assistance in respect to the Clerks Private Sector Award, get in touch with us today when you require:
- Help managing payroll for your employees. Our timesheet software automates your pay cycle by converting a timesheet into a payslip with one click
- Legal advice for your business. Our team of employment law experts are ready to answer any question relating to Modern Awards.