Every July 1 in Australia, many awards and their base rates change. This article explains how to ensure your team members' pay rates remain up to date. The below assumes you are using Deputy's pay rate library.
Before you read
- Target audience: This article is for users with System Administrator or Location Manager access.
- Plan restrictions: This article assumes you are using Deputy's pay rate library
This article covers:
Before July 1
Check employee classifications
- Check your team member's classifications. Some Deputy awards have inbuilt classifications. If your team member's are on these classifications, Deputy will automatically raise their base rates to the new required minimum wage. Deputy will never lower an employee's base rate.
- This is also considered a good time to compare your salaried staff to their award obligations before they change - use the Pay Comparison Report to do so.
- We recommend downloading a copy of your employee's data at this point.
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To do this, go to the People Tab, then click the Add People button, Bulk Import and update.
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Then select Update Team Members, and download your data from here.
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Update pay rates
- Make sure all timesheets have been correctly input into the system and approved.
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If one or more awards are being updated, a banner will appear at the top of the screen.
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When ready, click Update Now. This will open a modal that you can then use to update all of your pay rates.
- This process automatically updates all pay rules, allowance values, and updates any employees with a classification assigned to the minimum adult rate.
On or after July 1
Updating Employee Base Rates
Deputy recommends verifying all pay rates after this process. It is easiest to use our CSV upload for this.
Download all of your team data following the steps above. Open the spreadsheet, and pay particular attention to the Base Rate field. Verify that this is correct for all hourly employees.
In particular, double check staff under the age of 21 to ensure they are on the correct value, as this can be lower than the adult minimum wage.
At payroll export
The Fair Work update process may alter some export codes. We recommend verifying these are correct at the point of your next pay run. Instructions on how to do this are available here.
FAQs
What happens if I don't update the employee's profile after Deputy has updated an award?
Your employee will remain on an outdated version of the award which may not be compliant with Fair Work requirements, or may not function properly. For major Fair Work changes to awards Deputy will automatically update the employee on the new version if the manager has not updated the award within 6 weeks of the change.
When is the best time for me to update an employee's award?
To avoid mixed rate pay runs, we suggest updating to the latest award immediately after a pay run. That will ensure timesheets get approved with the new award pay rates. Don’t forget to update hourly base rate if required. Increases or decreases in pay rates will be automatically applied by Deputy.
Will I need to update my Payroll system with new Pay Rate Export Codes?
If you are exporting payroll data to your payroll system, the new Pay Rate Export Code associated with the newest awards may need to be manually updated in your payroll system. We have created a step-by-step guide to help you with this.
If you are using Xero or Deputy Payroll, this step may not be required but we suggest you check in with your accountant and bookkeeper just to be safe.
Will Deputy ever automatically update my employees' profiles to the new version of the award?
In some cases, Deputy will automatically update employee profiles to the new version of an award. When that is going to happen, Deputy will send you a notification that the award has been updated and the date on which Deputy will automatically apply it to your employees' profiles. Deputy will always provide advance notice of this in order to allow you time to manually make the change if you prefer to make the change on an earlier date.
What is the rate of pay for ordinary hours in this award?
Deputy only adjusts team member's with a classification set. You as the employer fill in each employee's base hourly rate and/or classification. in their Deputy profile after selecting an award. This rate will be applied to ordinary hours. Be sure to consult with Fair Work about the minimum rate of pay for each employee under an award.
What about junior employees?
Deputy will not automatically place junior employees on their minimum wage at this time - it is recommended you double check this after update.
What about salaried staff?
Salaries are not updated automatically and must be done manually.
What about employees using Pay By Area?
It is recommended to verify Pay by Area employees separately to ensure they are still correct. They may not be automatically updated.
Can I do this ahead of time?
You can use our Date Effective Pay functionality to set pay rates in advance.
Does the award include penalty and overtime rates?
Yes. Please visit Deputy's Pay Rate Library Help Docs for a detailed explanation of the penalty and overtime rates that are included in the award.
Does Deputy guarantee that I will be compliant with Fair Work requirements by using this award?
No, software provider can guarantee compliance. While Deputy’s Pay Rule Engine is designed to Simplify Shift Work by reducing the time required to apply the relevant Legal Requirements through automation, it is not a substitute for payroll or legal advice, nor is it intended to relieve you of your obligation to comply with the Legal Requirements applicable to your business. It is ultimately each customer’s sole responsibility to pay its employees correctly and in compliance with all Legal Requirements. Please review our Product Specific Terms for more information about your compliance responsibilities.
How do I get more information on an award and how it works?
If you still have questions after reading this FAQ and visiting our Awards Library help docs, please request support.
We are not currently using the Pay Rates and Awards functions offered by Deputy, how do I start to use these?
Check out our library of help articles, written for you by our Deputy experts, or get in touch with our 24/7 customer support team.
Which pay rates may NOT be updated automatically?
Deputy will automatically update all pay rates that are tagged as a Library rate. You can identify these rates by looking for the Library tag next to these rates in Pay Rate Builder.
Important note: Sometimes, the modifications you make to an award will disqualify it from getting automatic updates (and it will appear without the Library tag).
Any changes you need to make to pay rates that are NOT tagged Library will need to be done manually. For help with this process, see How to create or edit a pay rate.
You can also download the latest version of the award by using the Add Pay Rate button after July 1 and amend from there.