The building and construction industry and their treatment of employees is heavily regulated by the government. This Legal Kitz article will cover all you need to know as an employer of a business included in building and construction.
What is the building and construction award?
The Building and Construction Award is a legal document outlining the minimum employment conditions for construction workers in Australia. The legislation is governed by the Fair Work Act 2009 and is administered by the Fair Work Commission.
The award sets out the minimum hourly rates of pay, working hours, overtime pay, leave entitlements, and other conditions such as allowances and redundancy pay. Furthermore it covers issues such as superannuation, safety, training, and dispute resolution. The award applies to many workers in this industry, including apprentices, trainees, and employees engaged in construction, maintenance, and renovation work.
The Building and Construction Award is regularly reviewed and updated by the Fair Work Commission to reflect changes in industry practices, the cost of living, and any other relevant factors. Employers must abide by the terms and conditions outlined in the award, and any breaches can result in legal action by the Fair Work Ombudsman.
While the Award sets a minimum standard, many workers in the industry will have enterprise agreements or individual contracts that provide better conditions and higher pay. In such cases, the more favourable conditions apply.
What does this award offer in terms of pay and bonuses?
The Building and Construction Award in Australia sets minimum pay rates and bonuses for workers in the building and construction industry which are regularly updated by The Fair Work Commission.
As of 2021, a full-time worker’s minimum hourly pay rate ranged from $22.86 for a level 1 apprentice to $40.98 for a level 7 tradesperson. Part-time and casual workers are entitled to a minimum hourly rate of pay that is proportional to the full-time rate.
The award provides for an annual leave loading of 17.5% of the worker’s ordinary hourly pay rate, this is because people generally spend more while on leave and thus require extra pay as compensation. The overtime rate of pay is calculated as 1.5 times the worker’s ordinary hourly rate of pay for the first three hours of overtime worked, and double time thereafter.
Regarding allowances, the meal allowance for workers who work overtime or outside of regular hours is $18.29. The travel allowance for workers who are required to travel for work is $30.16 per day. The tool allowance for workers who are required to provide their own tools for work is $22.68 per week.
It is important to note that these rates and bonuses are the minimum standards set by the Building and Construction Award and may be higher for workers with enterprise agreements or individual contracts. Employers are required to pay at least the minimum rates and bonuses set by the award.
What does the Building and Construction Award offer in terms of leave entitlements?
The specific leave entitlements offered by the Building and Construction Award are subject to regular review and update by the Fair Work Commission.
The award grants workers the following leave entitlements as of 2021:
- Annual leave: Full-time workers are entitled to four weeks of paid annual leave per year. Part-time and casual workers are entitled to a pro-rata amount of annual leave based on their hours of work.
- Personal/carer’s leave: All workers are entitled to ten days of paid personal/carer’s leave per year, which can be used for personal illness or injury, or to care for a family member who is ill or injured.
- Community service leave: All workers are entitled to take paid leave to perform voluntary emergency management activities.
- Long service leave: Workers who have been continuously employed for ten years or more are entitled to take long service leave. The length of the leave and the amount of pay that a worker is entitled to will depend on the specific terms of the award.
- Public holidays: Workers are entitled to be paid their ordinary rate of pay plus a loading of 250% for work performed on a public holiday.
As mentioned earlier, these leave entitlements are the minimum standard set for building and construction workers and those working under enterprise agreements or individual contracts are often entitled to better conditions.
The Impact of Trade Unions on the Construction Industry
Trade unions have made significant strides in improving the conditions for workers in the building and construction industry in Australia. Some of the specific achievements include:
- Negotiating better pay and benefits: Trade unions have successfully negotiated higher wages and improved benefits for workers in the industry, helping to close the pay gap between workers in the industry and other workers.
- Improving health and safety standards: Trade unions have been instrumental in advocating for and implementing improved health and safety standards in the building and construction industry, helping to reduce the number of workplace accidents and injuries.
- Advocating for fair treatment of workers: Trade unions have been vocal in advocating for fair treatment of workers in the industry, including ensuring that workers are paid fairly for their work and are protected from discrimination and exploitation.
- Promoting job security: Trade unions have worked to promote job security for workers in the industry, advocating for measures such as reduced outsourcing and the use of secure and stable employment arrangements.
- Providing training and education opportunities: Trade unions have been active in providing training and education opportunities for workers in the building and construction industry, helping to ensure that workers have the skills and knowledge they need to succeed in the industry.
A Guide for Employers in the Australian Construction Industry
For employers in the building and construction industry in Australia, it is important to seek legal advice regarding the Building and Construction Award to ensure compliance with applicable laws and regulations. An experienced employment lawyer can provide guidance on the specific obligations and responsibilities of employers under the award, including minimum wage requirements, overtime pay, leave entitlements, and other key provisions. Employers should also seek legal advice on how to handle disputes with employees that arise in the context of the award, including disputes over pay, hours of work, and other employment-related matters. In addition, an employment lawyer can provide advice on the requirements for complying with health and safety regulations and other legal obligations in the building and construction industry. By seeking legal advice, employers can ensure that they are in compliance with the Building and Construction Award and are protected against potential legal claims from employees.
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