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Modern Award changes – Fact Sheet 1 – Overview

The Fair Work Commission (Commission) has confirmed changes to the Building and Construction General Onsite Award 2010 (Onsite Award) will commence from 1 July 2020. HIA recommends you consider the changes as some will have an immediate effect on your employee’s terms and conditions.

Changes to the Modern Award

The changes to the Modern Award have resulted in:

  • further flexibilities for you and your employees 
  • the redrafting of some complex provisions, and 
  • the introduction of new terms.

From 1 July 2020 the following key changes to the Onsite Award will commence: 

  • Travel allowance – The daily travel allowance provision has been redrafted, clarifying when the allowance will not be paid. For example, the provision that requires payment of the daily travel allowance in circumstances where a company vehicle is provided will be removed. Other circumstances where travel allowances are payable (e.g. distant work and travel between sites) have also been refined
  • Rostered Days Off (RDO) – Amendments which allow employers and employees to use RDOs how and when it suits their circumstances by allowing:
    • an agreement to be reached in relation to the scheduling of RDOs, and 
    • banking of RDOs
  • Time off instead of payment for overtime – This new provision allows employers and employees to agree to accrue overtime worked and take it as a form of leave, in lieu of payment. The time in lieu will accrue on at the rate of the additional hours worked, not at the rate of overtime which would be payable (e.g. one hour of overtime worked, equals one hour of time accrued).
  • Enhanced industry allowance – The removal and replacement of 52 complex industry, disability and expense-related allowances, with an enhanced industry allowance. The enhanced industry allowance forms part of the base rate of pay and will depend on which sector of the industry the employee works in.
  • Simplification of provisions – A number of provisions, including the living away from home allowance, annual leave loading, and tool and employee protection allowance have been redrafted in simpler terms. 

Of note, further changes to minimum rates of pay will occur from 1 November 2020 as a result of the Fair Work Commission 2019–2020 Annual Minimum Wage Decision. Ensure you are on the HIA Award Update list to get up-to-date information.

This information is part of a series of updates on the Modern Award changes aimed at assisting members understand the requirements. More information can be found in the articles in the ‘What to read next’ section. 

Watch a recorded webinar Changes to Onsite Award 1 July 2020.

To find out more, contact HIA's Workplace Services team

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