STATEMENT

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

4 yearly review of modern awards – Payment of wages
(AM2016/8)

4 yearly review of modern awards – common issue – payment of wages – payments on termination – outstanding awards - Vehicle Manufacturing, Repair, Services and Retail Award 2010

[1] The ‘payment of wages’ terms in modern awards are being dealt with as a common issue in the 4 yearly review.

[2] On 26 July 2019 we issued a decision 1 dealing with 32 of the 33 awards that have outstanding issues in relation to the ‘payment of wages on termination of employment’ model term. In that decision we said that we would issue a separate statement dealing with the Vehicle Manufacturing, Repair, Services and Retail Award 2010 (the Vehicle award). This statement sets out the next steps for the Vehicle award.

[3] Submissions in relation to the insertion of the model payments on termination into the Vehicle award were received from the following parties:

•  The Australian Industry Group Ai Group 21 September 2018

•  The Australian Manufacturing Workers’ Union AMWU 7 September 2018

•  Motor Trades Organisations (MTO)

[4] The MTO oppose the insertion of the model term in the Vehicle award and submit that the following award-specific amendments should be made (notes have not been reproduced as no changes are proposed to the notes) 2:

X. Payment on termination of employment

(a) The employer must pay an employee no later than 7 days after the day on which the employee’s employment terminates:

(i) the employee’s wages under this award for any complete or incomplete pay period worked by an employee up to the end of the day of termination; and

(ii) all other amounts that are due to the employee under this award and the NES but excluding commission payments that may become applicable at a later date for a person employed to perform vehicle sales related duties.

(b) The requirement to pay wages and other amounts under paragraph (a) is subject to further order of the Commission and the employer making deductions authorised by this award or the Act.

(c) An employer may deduct from monies due to an employee under paragraph

(d) such amount as is authorised in writing by the employee for a lawful purpose specified in the authority.

[5] The MTO submit that the above amendments have been discussed with the AMWU and the Shop, Distributive and Allied Employees Association (SDA) and that there is broad agreement on these changes. No submission was received from the SDA.

[6] The AMWU also proposes award specific amendments to the model term as follows (notes have not been reproduced as no changes are proposed to the notes) 3:

X. Payment on termination of employment

(a) The employer must pay an employee no later than 2 business days after the day on which the employee’s employment terminates:

(i) the employee’s wages under this award for any complete or incomplete pay period up to the end of the day of the termination; and

(ii) all other amounts that are due to the employee under this award and the NES.

(b) Where a person principally employed to perform vehicle sales related duties is entitled to commission payments at a later date than the date of termination, those payments will be payable within 7 days of becoming applicable.

(c) Where an employee abandons his or her employment or the employee’s employment is terminated without notice for serious and wilful misconduct the employer may pay the employee the wages and other amounts due set out in paragraph (a) within 7 business days of the termination.

(d) The requirement to pay wages and other amounts under paragraph (a) is subject to further order of the Commission and the employer making deductions authorised by this award or the Act.

(e) An employer may deduct from monies due to an employee such amount as is authorised in writing by the employee for a lawful purpose specified in the authority.

[7] The AMWU submit that the model term should be amended to provide payment within 2 business days after the day on which the employment terminates. This amendment is opposed by the MTO. 4

[8] In a submission dated 21 September 2018, Ai Group advised that it was engaged in discussions with the AMWU about the proposed variation but that these discussions had not been finalised. 5 Ai Group submitted that it may seek an opportunity to be heard in relation to the Vehicle award.

Next steps

[9] A conference will be held on Thursday 8 August 2019 at 4:30pm to determine the extent of the agreement between the parties, the issues in dispute and the process for determining any outstanding issues.

PRESIDENT

Printed by authority of the Commonwealth Government Printer

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 1   [2019] FWCFB 5146

 2   MTO submission 11 September 2018

 3   AMWU submission 7 September 2018

 4   MTO submission at page 4

 5   Ai Group submission 21 September 2018