The retail industry is constantly evolving, and retail employees deserve a simple Award and workplace conditions that truly reflect their needs. As part of the Fair Work Commission’s (FWC) review of the General Retail Industry Award (GRIA), we have put forward a proposal that ensures the Award reflects the needs of today’s retail employees, their families and businesses across Australia.

Our recommendations deliver greater benefits for both employees and employers. Key proposals include:

• Greater flexibility for retail managers, with an opt-in system that offers more control over their workday and a salaried income.
• More choice for employees, including options for split shifts or adjusted break times to help balance work with personal and family commitments.
• Simplified processes for small businesses, reducing administrative burden while maintaining fair and effective workplace conditions.

With ongoing media discussion and some misleading claims, we have included a set of FAQs to provide clarity and set the record straight. Our proposal ensures retail workplaces remain fair, adaptable, and future-ready.

This FAQ provides clear and factual answers to common questions about the proposed Award reforms. It is designed to help employees, retailers and stakeholders understand the key elements of the proposal, how it impacts employees and businesses and the benefits of a modernised, more flexible retail sector.

What is the ARA’s proposal to the Fair Work Commission?

• Our proposal to the Fair Work Commission aims to clarify, simplify and modernise the General Retail Industry Award.
• It introduces choice for employees and simpler rules for businesses, all while protecting the rights of working Australians. For example, our proposal includes the option for employees to opt in to a four-day working week or to choose to work two shifts on one day (“split shifts”).
• It also includes an option for retail managers to choose a rolled-up salaried rate calculated at least 125% of the minimum weekly rate of pay in order to receive a consistent pay packet each week (e.g. Level 4 retail manager = $54,680 and Level 8 retail manager = $77,447). This is capped at 43 hours per week of work, averaged over 6 months.
• Salary exemption is not a new award concept. It already exists in a number of awards, including the Hospitality Industry Award.
• We believe in choice, which is why this is an opt-in proposal. For retail managers who do not choose to opt-in, the existing Award rates, including penalty rates and overtime, continue to apply.

What is the ARA proposing in relation to work breaks?

• Our proposal seeks to add choice into the current Award. Under our proposal, employees can choose to take their breaks at other points throughout the day to better manage commitments outside of work.
• One example of this added flexibility would be for a worker who wishes to take their break at the end of their shift so they can go home early.
• This proposal could create additional employment opportunities for people who need more flexibility to participate in the modern workforce.

How will this proposal impact small businesses?

• With 994 pay rates across 96 pages, the current retail award is one of the most complex in Australia.
• Over 90% of ARA members are small businesses, and this proposal makes compliance easier while maintaining protections for employees. Simpler rules mean businesses can focus on job creation and growth instead of navigating excessive red tape.

Will the salary absorption proposal affect all retail employees?

• Our proposal for salary absorption is only available to salaried managers such as Store Managers, Assistant Store Managers and Department Managers, which accounts for only a small percentage of retail employees in the sector.

Will retail employees get a choice in whether they agree to ARA’s proposed system?

• At the heart of our proposal is choice, under which employees can opt in if they want greater flexibility in their workday.

Are employees better off under ARA’s proposed system?

• Managers who opt in will be better off with a higher rolled-up rate calculated at least 125% of the minimum base rate of pay and greater consistency in their pay packet.
• Employees who opt in also remain covered by the GRIA, with protections like capped hours of 43 per week and mandatory breaks, both during and between shifts. If managers work on public holidays or beyond the capped hours of 43 per week, they are entitled to additional payments on top of their salary.

Why is ARA looking to change the General Retail Industry Award (GRIA)?

•  In September 2023, the Federal Government initiated a simplification review of modern awards in the Fair Work Commission.
• The ARA in turn submitted an application with 17 proposals to clarify, simplify and modernise the retail award.
• The FWC hearing to determine the ARA’s application is scheduled for March 2025.

What does this salaried exemption proposal mean for worker entitlements?

• This proposal is about giving retail managers more choice, with an option to be paid an annualised salary, so that they have consistency and certainty over their income.
• Retail managers should have the same flexibility as managerial employees in other industries who have had the benefit of modern work arrangements for a long time, such as those working in hospitality.
• If managers choose not to opt into the salaried arrangement, all existing entitlements, including penalty rates, overtime, and meal breaks, remain unchanged.

Will retail employees have a choice in their work schedules?

• Yes. The ARA proposal is centred on choice – giving retail employees the option to choose to work a four-day work week or split shifts or be paid a salary if they are managers.  No changes can be forced on retail employees.

How does the salaried exemption proposal impact break and rest times?

• The salaried exemption proposal retains a 30-minute unpaid meal break for retail managers, but it otherwise removes all of the other restrictions on when breaks can be taken and for how long. This reflects the salaried nature of the retail manager role, as they can decide to take breaks as and when needed.

How does this salaried exemption proposal support retail employees?

• It gives employees certainty over their income and greater flexibility to structure their work in a way that balances work and life.