Are you up to date on the changes to the Horticultural award effective from 28th April 2022?
The Fair Work Commission has made a decision to include a minimum hourly wage guarantee and a requirement to record hours worked by pieceworkers into the Horticulture Award.
These new provisions take effect from the first pay period that starts on or after 28 April 2022.
New pieceworker definitions
The Horticulture Award has new definitions. These are;
A ‘pieceworker competent at the piecework task’ means a pieceworker who has at least 76 hours’ experience performing the task. Examples of a task include picking fruit, such as apples or strawberries.
Employers can work out the ‘average productivity of a pieceworker competent at the piecework task’ over a period, a specific way. It’s calculated by dividing:
- the total output of the pieceworkers competent at the piecework task over that period
- by the total of hours worked on the piecework task by the pieceworkers competent at the piecework task over that same period (where output is measured in the same unit used to specify the piece rate – for example, a punnet, bucket or kilogram).
Minimum Hourly wage guarantee
From 28 April 2022, the Horticulture Award will have a minimum hourly wage guarantee for pieceworkers.
This means that pieceworkers have to receive at least the minimum hourly rate for their classification, like other workers covered by the award.
The new minimum hourly pay rates for a pieceworker will be:
Full-time or part-time employees
The pay rate is the minimum hourly rate for the pieceworker’s classification level. As an example, for a current adult full-time level 1 employee, the rate would be $20.33 per hour.
Casuals
The pay rate is the minimum hourly rate for the pieceworker’s classification level, plus the 25% casual loading. As an example, for a current casual adult level 1 pieceworker, the rate would be $25.41 per hour.
Full-time, part-time or casual employees can continue to be paid a piece rate under the award. If a piece rate is paid, the employee has to be paid at least the minimum wage guarantee for every hour that they work.
This means that for each day that they work, a pieceworker must be paid no less than the minimum wage guarantee for the pieceworker, multiplied by the number of hours worked on that day.
If the pieceworker earned more than that hourly rate based on the piece work rate and their productivity, they have to be paid the higher amount.
For example:
Fred is a casual adult pieceworker who works on an orchard as a level 1 employee picking fruit. He is paid on a piecework basis.
Fred works on Tues for 8 hrs. The employer has set a piece work rate of $40 per bin.
Based on the changes, Fred must be paid a minimum pay for the days’ work equivalent to his pay rate multiplied by the number of hours worked. For example: $25.41 x 8 hrs = $203.28.
If Fred fills enough bins so that he achieves the ‘average productivity of a pieceworker competent at the piecework task’, he is entitled to a piece rate that allows him to earn at least 15% above the minimum hourly wage guarantee.
Fred produces 6 bins on this day. Fred would be entitled to be paid the $240 earned (6 bins x $40) as this is at least 15% above the minimum wage.
However, if Fred doesn’t meet the output and productivity requirements, picking only 4 bins, he’ll still be paid the piece rate plus additional payment to make up his pay to the minimum wage amount of $203.28.
Please note: on public holidays, a pieceworker must be paid 200% of the piece work rate.
New record-keeping obligations
From 28 April, employers have to give pieceworkers a written piecework record:
- before they start work
- signed by the employer.
These piecework records have to include:
- when (date and time) the piecework is to start
- a description of the task or tasks for which piece rates will be paid
- the piece rate amount
- the minimum hourly rate for the pieceworker’s classification level (plus, for casual pieceworkers, the 25% loading)
- the following statement:
“Under the Horticulture Award 2020, a pieceworker must be paid for each day on which they work, no less than their hourly rate under the award
(including the 25% casual loading for a casual pieceworker) multiplied by the number of hours worked on that day”.
A piecework record can cover more than one piecework task.
If an employer wants to change the piece rate for a piecework task, the employer has to first give the pieceworker a new record. This new record must include the new piece rate.
The employer must keep the following as employee records:
- a copy of each piecework record given to a pieceworker
- a record of:
- all hours worked by the pieceworker
- the applicable piece rate at the time those hours were worked.
Employers must give pieceworkers (or former pieceworkers) a copy of the employee record of the hours they worked and the applicable piece rates upon request. Employees can use their piecework records from a former employer to prove their competency to a new employer.
There is a free webinar being conducted by Fairwork around the award changes on Thurs 14th Apr at 2.00pm
https://register.gotowebinar.com/register/2346349438118520588
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