21 Awards Updated: Entry-Level Classifications Change on 1 Jan 2025

As we approach 2025, significant updates to many industry awards will take effect, introducing new definitions and minimum pay rates for entry-level classifications. These changes are essential for compliance and employee management, and employers must act now to prepare. Here’s an overview of the updates and actionable steps to get your business ready..

Key Changes to Entry-Level Classifications

Effective from 1 January 2025 (or 1 April 2025 for the Horticulture and Pastoral Awards), the Fair Work Commission has introduced the following updates:

• Introductory classifications capped at six months: Entry-level roles, often referred to as "C14" or "Level 1," can now only apply for a maximum of six months. This timeframe includes induction, training, and gaining basic skills.
• Updated minimum pay rates: After the introductory period, all employees must be paid at least the National Minimum Wage, regardless of their classification.
• Progression criteria based on skills: Employees can move to higher classifications earlier if they demonstrate the required competencies or achieve qualifications.

Examples of Commonly Affected Awards

These changes apply to 21 awards across various industries. Here are examples of how the updates may impact certain roles:

• Manufacturing Award: Entry-level employees (C14 classification) are limited to this level during their induction and training phase. Progression to C13 must occur after three months or earlier if skills are demonstrated.

Example: Zac starts as a C14 under the Manufacturing Award, performing supervised tasks while completing technical training. After demonstrating proficiency in machine operation, Zac progresses to C13 within two months, receiving a pay increase.

• Fitness Award: Entry-level roles often include assisting senior trainers or maintaining gym equipment. Progression depends on acquiring certifications or demonstrating competency in leading fitness activities.

Example: Emma begins as a Level 1 gym assistant, helping with member onboarding and equipment setup. After completing her group fitness instructor certification in three months, she advances to Level 2, allowing her to lead classes independently.

• Business Equipment Award: Updates include higher minimum pay rates for entry-level classifications, ensuring employees progress to higher levels promptly upon demonstrating required skills. Entry-level employees may start in basic administrative or equipment-support roles. Progression involves mastering systems or procedures essential to the business.

Example: Alex joins as a Level 1 customer support assistant, logging service calls under supervision. By learning to troubleshoot equipment issues and support clients directly, Alex progresses to Level 2 within four months.

• Animal and Veterinary Services Award: Entry-level roles typically involve hands-on assistance in animal care. Progression often aligns with gaining competency in technical tasks such as handling medical equipment or supporting clinical procedures.

Example: Mia starts as a veterinary assistant responsible for maintaining clean workspaces and preparing examination rooms. After demonstrating competency in assisting with minor procedures, Mia advances to the next classification within five months.

For the complete list of affected awards, visit the?Fair Work Commission’s site.

Next Steps for Employers

To ensure compliance and a smooth transition, take the following steps:

1. Review Your Awards: Identify which awards apply to your employees and understand the new classification rules and timelines.
2. Update Payroll Systems: Adjust your payroll to reflect the updated classifications and pay rates from the first full pay period in 2025.
3. Communicate with EAs we approach 2025, significant updates to many industry awards will take effect, introducing new definitions and minimum pay rates for entry-level classifications. These changes are essential for compliance and employee management, and employers must act now to prepare. Here’s an overview of the updates and actionable steps to get your business ready.

Why It Matters

Failing to comply with these updates can lead to:

• Back pay liabilities
• Compliance breaches
• Strained employee relationships

Taking proactive steps now will ensure your business stays compliant, maintains trust with your team, and avoids costly errors.

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