Accident Make Up Pay Back in Modern Awards

27th August 2015

A typically nostalgic Fair Work Commission has decided to re-introduce Accident make-up pay into twenty-one modern awards effective from 15 October 2015. The modern awards are:

Hydrocarbons Industry (Upstream) Award 2010; 
Labour Market Assistance Industry Award 2010; Marine Towage Award 2010; 
Mobile Crane Hiring Award 2010;
 Oil Refining and Manufacturing Award 2010;
 Professional Diving Industry (Industrial) Award 2010; 
Stevedoring Industry Award 2010; Airline Operations - Ground Staff Award 2010;
Building and Construction General On-Site Award 2010; 
Business Equipment Award 2010; 
Concrete Products Award 2010; 
Dry Cleaning and Laundry Industry Award 2010; 
Fast Food Industry Award 2010; 
Horticulture Award 2010; 
Joinery and Building Trades Award 2010; 
Mannequins and Models Award 2010; 
Storage Services and Wholesale Award 2010; 
Textile, Clothing Footwear and Associated Industries Award 2010; 
Timber Industry Award 2010; 
Vehicle Manufacturing, Repair, Service and Retail Award 2010;
 Wine Industry Award 2010.

The Full Bench of the Commission lead by Justice Boulton, frequently referencing the long history of such provisions in pre-modern awards, decided the re-introduction of accident make-up pay is necessary in order to achieve the modern awards objective. The Commission stated “In general terms, the decision we have taken is to maintain an accident pay entitlement in areas of award coverage where it has had wide application in the past and to set that entitlement at a level appropriate for the award safety net.”

Further, “it considered that award accident pay entitlements can operate satisfactorily alongside workers’ compensation schemes and do not undermine key policy objectives of those schemes.”

The Commission agreed with the CFMEU that the financial impact on the overwhelming majority of employers covered by the awards is not likely to be significant.

The Commission rejected the application to insert Accident make-up pay into a further fifteen modern awards as the particular industries covered by the awards did not have a history of such provisions or did not have widespread coverage under applicable pre-modern awards.

Accident make-up pay will be inserted as allowances into the twenty-one modern awards and the period over which they will be paid to injured employees will range between 26 and 52 weeks consistent with the pre-modern award provisions. The Commission will prepare draft orders for consultation prior to issuing the formal orders varying the modern awards effective from 15 October 2015.

Please contact me if you would like advice on the application of this decision on your business or organisation.