The Australian Retailers Association (ARA) has submitted an updated proposal to the Fair Work Commission (FWC) seeking amendments to the General Retail Industry Award (GRIA), which could see retail managers earning an additional $5,800 per year on average.
The proposal aims to modernise the award by introducing salary absorption provisions, which would allow for greater flexibility in rostering while maintaining financial stability for employees and reducing administrative burdens on businesses.
“We have taken on board feedback in the hearing and proposed a more flexible approach. The ARA is pleased to put forward an enhanced proposal for salaried managers, including increasing the salaried rate to 135% for retailers with later trading hours, to ensure that individuals working any type of roster would receive a salary increase,” said Fleur Brown, ARA Chief Industry Affairs Officer.
“This means retail managers could be on average $5,841.65 better off annually under an annualised salary option, providing greater income and financial stability.”
The proposal also includes a 150% rate for any hours worked beyond an average of 43 per week, regardless of trading hours.
To ensure compliance, employers would be required to review hours worked every six months to determine whether employees are entitled to additional payments or time off in lieu.
The ARA argues that the current award system is overly complex and places unnecessary administrative burdens on small businesses.
The Council of Small Business Organisations Australia (COSBOA) supports the proposal, with CEO Luke Achterstraat highlighting the difficulties employers face in navigating the award.
“In the retail sector alone, employers must navigate 994 different pay rates across 96 pages just to ensure their employees are paid correctly. It’s unworkable,” said Achterstraat.
“Red tape is killing Australian small businesses, and we welcome changes that provide more certainty for both employees and small business.”