News Major change to workers pay

Major change to workers’ pay

A major change to the Horticulture Award that will mean pieceworkers are entitled to take home a minimum casual rate of pay will come into effect in the coming months.

It follows the Fair Work Commission’s (FWC) ruling in November last year that casual farm workers should be guaranteed a minimum rate of pay – currently $25.41 an hour – for the work they complete.

This change to the Horticulture Award will come into effect on 28 April.

In its finding, the FWC’s full bench expressed the view that the former pieceworker provisions in the Horticulture Aware were “not fit for purpose”. "They do not provide a fair and relevant minimum safety net as required by the Act," it said. "The Full Bench was satisfied that the insertion of a minimum wage floor with consequential time recording provisions in the piecework clause is necessary to ensure that the Horticulture Award achieves the modern awards objective."

The change was earlier challenged by a broad range of horticultural bodies, including both the Australian Table Grape Association and Dried Fruits Australia, as well as the National Farmers’ Federation, over concerns the introduction of a minimum floor rate would discourage productivity.

The final decision means casual workers under the Horticulture Award must be paid a minimum $25.41 per hour. Workers can still be paid a piece rate, which must allow for the average worker to earn the equivalent of at least 15 per cent above the casual rate.

Employers will also be required to record the hours worked by the piece worker and the rate applied to the hours worked.

Growers should keep up to date on the change and how it’s implemented by visiting www.horticulture.fairwork.gov.au

This site includes all the information about current requirements under the Horticulture Award and will be updated to reflect the new changes as they become law. Growers can subscribe to email updates on this site. v