3C.01Modern enterprise award or transitional arrangements resulting in reduction in take‑home pay

3C.01 Modern enterprise award or transitional arrangements resulting in reduction in take‑home pay

(1) This regulation is made for subitem 8(1) of Schedule 2 to the Act. (2) Item 2 of Schedule 2 to the Act is modified by: (a) replacing ‘subitem 11(2)’ in the definition of take‑home pay with ‘subitems 11(2) and 16AA(2)’; and (b) replacing ‘subitem 12(1)’ in the definition of take‑home pay order, with ‘subitems 12(1) and 16AB(1)’. (3) Schedule 6 to the Act is modified by inserting the following Division after Division 3 of Part 2.

‘Division 3A—Avoiding reductions in take‑home pay from modern enterprise award or transitional arrangements

16AA Modern enterprise award terms giving FWA power to make take‑home pay orders

(1) A modern enterprise award may include terms that give FWA power to make an order (a take‑home pay order) remedying a reduction in take‑home pay suffered by an employee, or a class of employees, as a result of the making of a modern enterprise award or the operation of any transitional arrangements in relation to the award (whether or not the reduction in take‑home pay is a modernisation‑related reduction in take‑home pay). (2) An employee’s take‑home pay is the pay an employee actually receives: (a) including wages and incentive‑based payments, and additional amounts such as allowances and overtime; but (b) disregarding the effect of any deductions that are made as permitted by section 324 of the FW Act.

Note: Deductions permitted by section 324 of the FW Act may (for example) include deductions under salary sacrificing arrangements.

(3) This Division applies to an employee, or a class of employees, to whom a modern enterprise award applies if the employee or employees are likely to suffer a reduction in take‑home pay attributable to the making of a modern enterprise award or the operation of any transitional arrangements in relation to the award.

16AB Orders remedying reductions in take‑home pay

(1) If FWA makes a take‑home pay order under the terms of a modern enterprise award it must do so in accordance with this Division. (2) Without limiting the kind of take‑home pay order that may be made under the terms of a modern enterprise award, one or more of the following orders may be made: (a) an order compensating a reduction in take‑home pay that has already been suffered; (b) an order requiring the payment of an amount of take‑home pay; (c) an order preventing a reduction in take‑home pay from occurring. (3) FWA may make a take‑home pay order only on application by: (a) an employee who has suffered a reduction in take‑home pay; or (b) an organisation that is entitled to represent the industrial interests of such an employee; or (c) a person acting on behalf of a class of such employees. (4) If FWA is satisfied that an application for a take‑home pay order has already been made in relation to an employee or class of employees, FWA may dismiss any later application that is made in relation to the same employee or employees.