Employer Health Check - Understanding the Pharmacy Industry Award

People are a key component of community pharmacy is the people.? Whether you’re a pharmacy business owner or charged with managing the workplace team, you must understand employment obligations.

In this article, we consider some key aspects of the Pharmacy Industry Award 2020 (‘Award’):

1.????? Who is Not Covered by the Award

Pharmacies owned or operated by hospitals, public institutions, or by the government, and not engaged in retail sales of goods and services to the public, fall outside the control of the Award. Additionally, employees excluded from award coverage and employees covered by a modern enterprise award or other instrument are not governed by the Award.

2.????? Minimum Wage Requirements

The Award sets out the minimum wage requirements for various roles within a pharmacy together with overtime rates, penalty rates and allowances.? There are also additional requirements for employees who conduct home medicine reviews as well as employees who work in the county of Yancowinna (NSW).

Two major employers were recently penalised for breaching minimum payment obligations set out in the Award, highlighting the potential for significant financial penalties to be imposed on employers. As such, employers should ensure they diarise to review and adjust pay rates on an annual basis to comply with the terms of the Award.

3.????? Individual Flexibility Arrangements

Section 5 of the Award provides for an Individual Flexibility Arrangement (‘IFA’) which can be used in respect of particular aspects of the employment relationship to create alternative employment arrangements.

An annualised wage arrangement is an example. It operates to simplify the wage payment process by outlining how an eligible employee will be paid over a 12 month period, including payment of allowances and overtime. An annualised wage arrangement is not suitable for all employees and only applies to full time pharmacists and/or level 4 pharmacy assistants

While a beneficial arrangement in the right circumstance, employers and employers are cautioned to not take a ‘one size fits all’ approach to these arrangements and ensure that the employee is not left at a disadvantage.

4.????? Annual Leave Loading

Annual leave loading is a payment made to employees when they take annual leave. Typically set at 17.5% of the minimum wage rate, this amount may vary over time. Annual leave loading is paid when annual leave entitlements are paid, including when an employment relationship is terminated.

5.????? Rostering

The Award outlines the maximum ordinary hours to be worked in either a week, fortnight and/or day.

Ordinary working hours of full and part time employees must be rostered to have 2 consecutive days off each week or 3 consecutive days off over a fortnight.? The Award also sets out the number of days per week in which ordinary hours can be worked.?

Students and casual employees have their own requirements and cannot be rostered to work on a shift which is less than 3 hours unless consent is provided. Further, where school students are employed in a pharmacy business, there must be at least one employee at Level 3 or higher rostered at the same time as the student to supervise the student.

6.????? Superannuation

There are serious penalties for employers who don't pay superannuation, including significant financial penalties. Both on hire employees and their employers are governed by the Award. If you use on-hire services or independent contractors to staff your business, you should check the terms of the agreement to determine who is responsible for superannuation contributions.

Managing employment obligations is complex, and oversights can result in significant penalties for employers. Always obtain legal advice to assist you in understanding and managing your obligations.

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Michelle Neil is a Lawyer at Vitality Law Australia, an award winning commercial law firm servicing pharmacy businesses and healthcare professionals across Australia.? For further information, email [email protected] or visit www.vitalitylawaustralia.com

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