From 1 January 2025 (for most awards), the Fair Work Commission (FWC) has made changes to introductory classifications and new rules for introductory pay rates.
Key changes
Limited time for introductory classifications
Introductory classifications apply to the first stage of a job such as an induction or training period. Introductory classifications are sometimes referred to as ‘C14’, ‘introductory’ or ‘Level 1’. The new maximum time limit for introductory classifications varies between awards but is never longer than 6 months. After this, the employee must progress to the next classification level.
Employees who have been employed at their award introductory level for more than the maximum period on 1 January (or 1 April for employees under the Horticulture Award and Pastoral Award) will need to be automatically re-classified at the next level up (and receive the appropriate pay rise).
Minimum pay rates
Minimum pay rates for some levels have increased. The FWC has published updated pay guides.
Enterprise agreements
If an employee is covered by an enterprise agreement and paid introductory rates, they will be required to be paid in line with the new classification rate.
What you can do now
To prepare for these changes, businesses should take proactive steps to:
Review the list of affected awards – Check to see if your employees are covered by an affected award.
Check enterprise agreements – Employers should check their enterprise agreement and applicable award to ensure that any introductory rates meet at least the minimum base rates in their relevant award.
Update your payroll system – Ensure your payroll system is updated to reflect any new introductory classifications and pay rates that may apply to employees.
Seek professional advice – For more information and to ensure you meet your obligations while protecting your business, contact the team at Emplawyer for expert guidance.
