Modern Awards Update
News from the Accounting World

Modern Awards Update: Recent Changes and What They Mean for Your Business

9 min read
Published: 3 March 2026
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The Fair Work Commission has made significant updates to Modern Awards affecting millions of Australian employees. Learn what has changed, which awards are affected, and how to ensure your payroll remains compliant.

Key Changes

  • Enhanced flexibility provisions for part-time and casual employees
  • Updated overtime and penalty rate calculations for hospitality and retail
  • New requirements for rostering and shift changes
  • Clarified entitlements for employees working from home
  • Strengthened consultation requirements for workplace changes

What Are Modern Awards?

Modern Awards are legally enforceable documents that set out minimum terms and conditions of employment for employees in a particular industry or occupation. They cover matters such as:

  • Minimum wages and classifications
  • Hours of work and rostering
  • Overtime and penalty rates
  • Leave entitlements
  • Allowances and other entitlements

Recent Changes to Modern Awards

1. Part-Time and Casual Employment Flexibility

Several Modern Awards now include enhanced flexibility provisions allowing employers and employees to agree to:

  • Variations in ordinary hours of work (subject to minimum notice periods)
  • Flexible working arrangements to meet family or caring responsibilities
  • Options for make-up time if hours are reduced due to operational requirements

Important Safeguards

Any flexibility arrangements must be genuinely agreed to by the employee and documented in writing. Employees cannot be forced to agree to variations that disadvantage them.

2. Hospitality and Retail Penalty Rates

The Hospitality Industry (General) Award and General Retail Industry Award have been updated with clarified penalty rate structures:

Saturday work:

Full-time and part-time employees: 150% of ordinary hourly rate

Casual employees: 175% of ordinary hourly rate (includes casual loading)

Sunday work:

Full-time and part-time employees: 200% of ordinary hourly rate

Casual employees: 225% of ordinary hourly rate (includes casual loading)

Public holidays:

Full-time and part-time employees: 250% of ordinary hourly rate

Casual employees: 275% of ordinary hourly rate (includes casual loading)

3. Rostering and Shift Change Requirements

Many awards now require employers to provide:

  • Minimum notice periods: At least 7 days' notice of rosters (or shorter if agreed in writing)
  • Shift change compensation: If a shift is changed with less than required notice, the employee may be entitled to payment
  • Minimum shift lengths: Many awards specify minimum engagement periods (commonly 3-4 hours)

4. Working from Home Provisions

Several awards have been updated to clarify entitlements for employees working from home, including:

  • Ordinary hours of work apply regardless of work location
  • Employers must ensure a safe working environment at home
  • Employees may be entitled to reimbursement for reasonable expenses
  • Overtime provisions apply when working from home

5. Consultation Requirements

Strengthened consultation requirements now mandate that employers must consult with employees and their representatives about:

  • Major workplace changes
  • Changes to regular roster or hours of work
  • Introduction of new technology affecting job roles
  • Workplace health and safety matters

Which Awards Are Affected?

Recent changes affect numerous Modern Awards, with the most significant updates to:

Hospitality Industry (General) Award
General Retail Industry Award
Clerks-Private Sector Award
Manufacturing and Associated Industries Award
Building and Construction General Award
Health Professionals and Support Services Award

What You Need to Do

1. Identify Which Award Applies

Review which Modern Award covers each employee. Use the Fair Work Ombudsman's Award Finder tool if you are unsure.

2. Review Your Payroll Settings

Ensure your payroll system correctly calculates penalty rates, overtime, and allowances according to the updated award provisions.

3. Update Rostering Practices

Adjust your rostering procedures to comply with minimum notice periods and shift change requirements.

4. Document Flexibility Arrangements

If you have flexible working arrangements with employees, ensure they are documented in writing and comply with award requirements.

5. Conduct a Compliance Audit

Review current employment arrangements and pay rates to ensure full compliance with updated award provisions.

How Exacc Helps with Award Compliance

Exacc includes comprehensive Modern Award support to help ensure payroll compliance:

  • Pre-configured award interpretations for major Modern Awards
  • Automatic calculation of penalty rates and overtime
  • Regular updates when awards change
  • Classification and pay rate libraries
  • Compliance reporting and audit trails

Further Resources

Need Award Compliance Help?

Our team can help you configure Exacc to accurately calculate pay rates and entitlements under Modern Awards.

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