Fair Work Act 2009
s.156 – 4 yearly review of modern awards

4 yearly review of modern awards – payment of wages – model terms – directions.

[1] This Statement deals with a number of matters concerning ‘payment of wages’ terms in modern awards. These matters are being dealt with as a common issue as part of the 4 yearly review of modern awards. The Statement provides a summary of the issues to date and informs the parties of the next steps in the determination of this matter.

[2] On 1 December 2016 we issued a decision dealing with various ‘payment of wages’ issues in modern awards (the December 2016 decision). The main issues dealt with in that decision were:

• timing of payment of wages


• timing of payment on termination of employment


• accrual of wages and other amounts

[3] Following the December 2016 decision a number of submissions were received and a summary of these submissions was published on 20 March 2017 (and a revised version of the summary was published on 22 March). A further hearing was held on 23 March 2017, followed by a conference of interested parties on 4 May 2017.

[4] At the 23 March 2017 hearing we noted that there appeared to be a measure of agreement between the parties about some important matters of principle. A Statement was issued on 26 April 2017 1 to identify those areas of agreement and to highlight what appeared to be the areas of disagreement.

[5] The purpose of the 4 May 2017 conference was to provide parties with an opportunity to confirm the issues that were agreed and to identify those that may require determination. At the conference, parties confirmed that there was general agreement in a number of areas and it was agreed that a further update on the outstanding issues would be provided at a mention on 22 August 2017.

[6] At the mention on 22 August 2017, the parties requested further time to have discussions about the outstanding issues. A transcript of the mention is available on the Commission’s website at Transcript – 22 August 2017.

[7] A further mention was held on 11 September 2017. A transcript of this proceeding is available on the Commission’s website at Transcript – 11 September 2017. During the proceedings on 11 September 2017 the parties advised that there were a number of outstanding issues which required determination. A general agreement emerged regarding the directions for the finalisation of the outstanding matters.

[8] The ACTU and Ai Group agreed to file draft directions in relation to the proposed programming of the determination of the outstanding issues. It was noted that parties would be invited to make submission in relation to three issues;

• the payment of wages and other amounts model term;
• the payment of wages on termination model term; and
• the accrual point.

[9] It was also generally agreed that the outstanding issues would be determined on the papers, in the absence of any party seeking an oral hearing for a particular reason.

[10] On 13 September 2017 draft directions were filed jointly by Ai Group and the ACTU.

[11] These draft directions have now been settled by the Full Bench and are set out at Attachment A.

PRESIDENT

Attachment A

Fair Work Act 2009 s.156 - 4 yearly review of modern awards

4 yearly review of modern awards – Payment of Wages.

These directions relate to the following matters:

(i) The provisional ‘payment of wages and other amounts’ model term set out at paragraph [34] of the Full Bench decision dated 1 December 2016 ([2016] FWCFB 8463) (Decision);

(ii) The provisional ‘payment on termination of employment’ model term at paragraph [117] of the Decision; and

(iii) The issue related to the accrual of payments referred to at paragraphs [19] to [22] of the Statement of the Full Bench issued on 19 May 2017. 2

[1] Interested parties are to file any submissions upon which they seek to rely in relation to the matters identified above by 4pm on 30 October 2017.

[2] Interested parties are to file any submissions in reply by 4pm on 4 December 2017.

[3] Interested parties are to identify whether any submissions filed pursuant to these directions are to be read in conjunction with previous submissions filed, or whether they wholly replace such submissions.

[4] Interested parties seeking an oral hearing are to make such a request by 4pm on 6 November 2017.

[5] Parties are granted liberty to apply to vary these directions.

[6] All submissions and evidence are to be sent to amod@fwc.gov.au.

 1   [2017] FWCFB 2290

 2   [2017] FWCFB 2729

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