Retail managers could be thousands of dollars better off annually under an annualised salary option for senior managers aimed at providing greater income stability. Retail workers would also be able to work a more flexible four-day week and finish shifts early as part of a submission by the Australian Retailers Association (ARA) to modernise the retail industry’s award.
These and other productivity enhancing proposals will be heard by the Fair Work Commission (FWC) commencing Monday, 17 March 2025.
The ARA is proposing some managers be made eligible to elect to receive a higher annual salary of at least 125% of their base rate of pay, under the submission to vary the General Retail Industry Award (GRIA).
“What we are proposing, which is common across many industries, is that senior employees be offered a voluntary option of receiving an annualised salary that exceeds award rates,” said ARA Chief Industry Affairs Officer Fleur Brown. “This gives retail managers consistency and remuneration certainty at a level which is at least 125% of the base rate of pay.
“Managers receive this salary every week, even where they don’t work the number of hours incorporated into their salary. This model already exists in the Hospitality Award, and we propose even greater safeguards be included in the Retail Award.
“Despite a recent misinformation campaign by unions, it’s important to be clear that all penalty rates, overtime, and paid breaks remain unchanged under the GRIA. Importantly, the choice to opt into the benefits of this salary model, is entirely up to each employee.”
“An ARA analysis of rosters supplied to the FWC by the SDA, shows the majority of employees would be financially better off under the ARA’s proposal, with an average annual benefit above the GRIA of $2,806, across the rosters analysed. This figure is based purely on the rosters supplied by the SDA, and for many employees the benefit will be significantly higher.
More than half of retail businesses surveyed by the ARA say current workplace relations laws create barriers to better employment outcomes, such as the ability to work a smoothed 38 hours over four days or to work split shifts to accommodate the personal needs of employees.
Ms Brown says the GRIA is out of step with the needs of a modern retail workforce.
“There are currently obvious, counter-productive barriers to mutually agreed flexible work arrangements that don’t reflect the needs of the modern worker or employer, its a classic case of no winners at the moment” she said.
“It’s widely accepted that the GRIA is unnecessarily complex with almost 1,000 individual pay rates. The complexity and onerous detail put an enormous burden on small to medium businesses in particular who simply want to focus on fairly rewarding their team, providing mutually agreed flexible working arrangements, doing the right thing by their customers and being part of the retail sector which is a crucial element of the Australian economy.
Under ARA proposals, workers who would like to work a four-day week have the option to more flexibly work 38 hours across four days, while others would be allowed to elect to work split-shifts.
This would provide working parents with greater flexibility for activities such as school pickup and drop off. Employees who want to finish early can also choose to take their break at the end of their shift.
“We are simply proposing that employees who prefer to take an early mark can opt into that.”
There is a working precedent for the salaried managerial proposal, which is already used broadly and effectively across a range of industries.
“This choice and flexibility aligns with the shift towards more flexible ways of working which is in the best interests of workers and their employers,” Ms Brown said. “We respect the FWC process and look forward to the hearing taking place from 17 March.
A full fact sheet is available here.
- Salary absorption, would compensate workers who choose to receive a higher fixed annual salary in lieu of certain other payments.
Hypothetical example of how the proposed changes could apply to a worker:
Present state – Jenny works full-time at level six. Over a six-month period, she works an average of two hours of overtime per week.
Jenny’s current FT weekly wage inc. overtime under existing GRIA: $1,176.37
Jenny’s new FT weekly wage under salary absorption rate proposal: $1,362.88
Financial benefit to Jenny: $186.51 per week
Safeguards
- Change by employee agreement only
- Max of 43 hours per week covered by arrangement
- Min 16 days off per 8-week roster
- Public holidays paid extra in line with GRIA
- Additional compensation for public holidays worked
The ARA’s 13 submission proposals for the GRIA:
There are 13 proposals in the ARA submission which will be heard in March 2025. These are listed below:
- Amendment to make clear “written records” include digital records;
- Amendment to allow for split shifts with employee agreement;
- Amendment to minimum break between shifts on different days;
- Amendment to improve ability to average hours over longer periods;
- Amendment to remove restriction of 19 starts for full-time employees;
- Amendment to enable 38 ordinary hours to be worked across four days;
- Amendment to remove the requirement for consecutive days off by agreement;
- Amendment to clarify employees regularly working Sundays;
- Amendment to introduce salaries absorption for managerial and higher-level staff;
- Amendment to remove requirements to notify break times in advance for non-part-time employees;
- Amendment to clarify annual leave loading;
- Amendment to provide an ability for employees to waive a meal break and go home early; and
- Amendment to clarify the application of the first aid allowance
The full submission can be accessed here.
ENDS
