Changes to introductory classifications in Awards

Changes to introductory classifications in Awards have kicked in. Have you checked your records to ensure your new employees are classified correctly?

From 1 January 2025 new rules and minimum pay rates will apply to introductory classifications in Awards. These introductory classifications, typically assigned to new employees, will now be subject to strict time limits and progression requirements.

Some Awards currently contain pay rates that are less than the National Minimum Wage.  These are usually pay rates that apply to an introductory classification or entry-level jobs. These introductory (or entry-level) classifications have been designed to afford new employees the opportunity to gain the necessary skills and experience to progress within their new employer within a defined timeframe. 

From 1 January or 1 April 2025, introductory classifications in affected Awards can only apply for a limited and specified time.

Introductory classifications are called different names including “C14”, “introductory” and sometimes “Level 1”. These classifications apply to the first stage of a job. The first stage of a job includes:

• an initial induction period
• time spent undertaking training, or
• enough time to gain basic skills and experience required for the job.

All employment classifications that aren’t introductory classifications must be paid at least the National Minimum Wage.  

The new maximum time limit for introductory level classifications varies between Awards but is never longer than 6 months.

Some Awards allow an employee to progress to the next classification before they’ve reached the maximum time limit for the introductory classification. This may be based on the employee demonstrating their competency or achieving a required qualification. Employees will generally move to a higher classification based on what happens first.

Employers are encouraged to review Award classifications to ensure any workers currently classified as C14, Introductory or Level 1 are within the scope of the new laws. Employers should also take this opportunity to review classifications of all other Award-covered employees to ensure workers are classified (and paid) in accordance with their current duties, role responsibilities and qualifications.  This should include the employer holding records of any classification changes differing from the information in the employee’s original Contract of Employment.

Need more info? Check out the Fair Work Ombudsman’s page containing a list of affected Awards, including those with new introductory level rules here. No time to DIY? We welcome your call to Bare Bones Consulting for advice on our simple audit on your employees and records to ensure everything’s classified correctly so you avoid expensive penalties for non-compliance. Sounds good, right?