Employers in Transition with new Fitness Industry Wage Rates

All employers should be aware that the new Fitness Industry Award (Award) came into effect on 1 January 2010, with the new rates taking effect on 1 July 2010.  At this stage, this Award covers employers in Victoria, the ACT and NT. It also covers all organisations which operate as an 'incorporated' entity (generally a Pty Ltd company).

To lessen the immediate impact of these new changes the modern award contains transitional provisions which allow some of the changes in the award to be progressively phased in over five annual instalments commencing on the 1st of July 2010.

View the New Transitional Wages Guide for the Fitness Industry
View the Fitness Industry Award 2010 Wage Rate details and State and Territory Pay Rate Schedules

At this stage, this Award does not cover unincorporated employers outside of Victoria, the ACT and NT. These employers should however be aware that on 1 of January 2010 all of the state governments across Australia, with the exception of Western Australia, referred their industrial relations powers to the Federal Government. This means that all unincorporated employers within Queensland, New South Wales, Tasmania and South Australia are now subject to the federal industrial relations system.

As indicated above, whilst these employers are now covered by the federal system (in particular, the National Employment Standards), they are not yet bound by the new Modern Awards. This means that employers who are operating an unincorporated business in New South Wales, Queensland, South Australia and Tasmania should be aware that their employees will remain bound by the relevant State Award until 1 January 2011.

For those employers who are already bound by the Award, Schedule A contains transitional provisions. These provisions allow wages, loadings and penalty rates which are higher or lower than existing conditions to be progressively introduced in 5 annual instalments, commencing on 1 July 2010. These provisions do not, however, apply to allowances.

Before acting on any of the information in the above article, please contact the friendly team at the Fitness Australia HR Advisory Service on 1300 211 311.

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