Classification levels and higher duties under the General Retail Industry Award

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Classification levels and higher duties under the General Retail Industry Award

It is important to understand the different classification levels under the General Retail Industry Award (the GRIA) so as to best apply them to employees. This will ensure wages and entitlements are paid correctly. It is important to be aware of how the completion of higher duties are treated under the GRIA to avoid underpayment risks.

Under the GRIA, employees are classified in several different categories that outline their responsibilities and experience. There are 8 categories outlined in the Award as follows:

LEVEL 1

LEVEL 2

LEVEL 3

LEVEL 4

LEVEL 5

LEVEL 6

• Someone new to working in retail with limited relevant experience who performs basic duties within your business • E.g. Store assistant

• Someone working at a higher level of skill than level 1, but not yet performing the duties of a level 3 employee. • E.g. Experienced store assistant

• Employees at this level might be required to perform tasks such as supervising others, being responsible for security of cash and/or opening or closing a store. • E.g. A shift supervisor or shift manager

• Employees at this level might be required to: » Manage a defined section or department of the store » Be responsible for stock control » Be responsible for buying or ordering of stock » Supervise up to 4 staff, including themselves • Employees at this level may be trade qualified. • E.g. An employee who manages the dairy department and orders the stock for the dairy section on a weekly basis; a butcher

• Someone working at a higher level of skill than level 4, but not yet performing the duties of a level 6 employee. • E.g. Tradesperson in charge of other staff within a section or department

• Employees at this level might be required to: » Supervise 5 or more employees, including themselves » Manage a shop without departments or sections » Provide assistance to a shop manager in a shop with departments or sections • E.g. A section or department manager in charge of 5 or more employees

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LEVEL 7

LEVEL 8

• Someone working at a higher level of skill than level 6, but not yet performing the duties of a level 8 employee. • E.g. A visual merchandiser who holds a diploma

• Employees at this level might be required to: » Hold a diploma qualification » Manage a shop with departments or sections • E.g. A Shop manager who oversees all staff and monitors the quality of work of staff members

Underpayments – why is it important to classify employees correctly?

It is essential employees are classified correctly by their employer to ensure adequate compensation for their role in the business. This will prevent disagreements with employees, ensure transparent dialogue exists and ensure payments are made accurately.

Employees should be classified at the highest possible classification level applicable to their duties, or alternatively the ‘higher duties’ provisions of the GRIA should be used to ensure time worked at a higher classification is adequately paid for. If underpayment does occur members may be liable and vulnerable to underpayment claims from staff. Determining classification levels

Sometimes it may be difficult to accurately classify employees who alternate between tasks or roles. It is helpful to refer to indicative job titles and characteristics outlined in the award. The award provides examples and tasks designated to each level and can be of assistance when classifying staff. It is important to look at the responsibilities of the employee and classify them at the highest possible level according to the tasks they complete on a regular basis. The higher duties provision under the GRIA

If an employee performs a duty above their classification, their classification level must be revised or they must be adequately compensated for the time spent performing at the higher classification level.

The higher duties provision can be used in the instance of an employee that is required to supervise all staff on a given night although they do not usually do so or have not done previously. In such a scenario, members can utilise the ‘higher duties’ provisions under the GRIA to address the situation. Under these provisions, members must pay an employee who performs for more than 2 hours on a particular day or shift duties of a classification higher than the employee’s ordinary classification, the minimum hourly rate specified for that higher classification for the entirety of that shift. However, if the employee performs 2 or less hours on a particular day or shift duties of a classification higher than the employee’s ordinary classification, the member can pay the employee the minimum hourly rate specified for that higher classification for the hours worked at the higher classification level.

It is advisable to maintain time records of work performed at each classification level if utilising the higher duties provision of the GRIA.

Members may elect to reclassify employees that continually or consistently perform work at a higher classification level.

For further information contact the Employment Law team at 1800 888 479 regarding award coverage or classification levels.