Let's face it: Modern Awards can be a real source of frustration for employers and payroll specialists.
These lengthy, jargon-filled documents are meant to set out the minimum pay rates and employment conditions for workers in various industries, but trying to make sense of them can leave you feeling like you need a law degree!
The problem is that failing to understand and comply with the relevant Modern Award can land your business in hot water. The Fair Work Ombudsman (FWO) is cracking down on non-compliance, and they're not afraid to name and shame employers who get it wrong.
In fact, in our experience, most non-compliance issues stem from a lack of understanding rather than intentional wrongdoing.
But don't worry, we're here to help!
In this article, we'll dive into the Nurses Award 2020 and break it down into plain English.
We'll cover everything you need to know as an employer or payroll specialist, from the types of nurses covered by the award to the minimum pay rates, allowances, leave entitlements, and more.
And if you download our eBook, you’ll get access to a BONUS checklist, classification tables and more.
Disclaimer:
Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek a second professional opinion for any legal or tax issues raised in your business affairs.
The Nurses Award 2020 applies to employers in the health industry and their nursing employees throughout Australia. This may include nurses working in:
The award covers different types of nurses, like:
The award also applies to on-hire employees and group training employees working in the health industry. So even if you’re employed by a labour-hire company or a group training organisation, you still get the minimum conditions in the Nurses Award if you’re placed with a health industry client.
But there are some exceptions.
The award doesn’t cover nurses employed:
So, essentially, if you’re an employer or employee in the nursing sector and don’t fall into the four categories listed above, the Nurses Award 2020 probably applies to you.
Keep reading to find out what this means for your employment rights and responsibilities.
Let's break down what each one means:
As an employer, you may need to offer casual conversion (i.e., the option to become a permanent employee) to eligible casual nurses who have worked for you for 12 months or more.
To be eligible for casual conversion, a casual nurse must have worked a regular pattern of hours on an ongoing basis for at least 12 months, and those hours must be able to continue as a full-time or part-time position without significant adjustment.
If a casual nurse meets these criteria, you must offer them the opportunity to convert to permanent employment unless you have reasonable grounds not to do so.
The main reasonable grounds for not offering a casual employee conversion to permanent are if their role or hours will significantly change in the near future in a way that is incompatible with permanent employment or if making the offer would breach recruitment laws or regulations.
The employer must have facts to support their reasonable grounds, not just speculation.
Back to topThe Nurses Award 2020 sets out the following rules:
As an employer, you must get your rostering right and ensure your nurses are getting the breaks they're entitled to.
Not only is it a legal requirement, but it's also important for their health and well-being. Well-rested nurses lead to better patient outcomes and a more productive workplace!
Back to topThe Nurses Award 2020 recognises the importance of regular breaks for nurses to maintain their well-being and performance while on duty.
According to the award, nurses are entitled to a meal break lasting between 30 and 60 minutes after working no more than 5 hours. This meal break is unpaid and does not count as time worked.
However, if a nurse must remain on call during their meal break, the time will be paid at the appropriate rate and considered part of their ordinary working hours.
In addition to the meal break, nurses are allowed a paid 10-minute tea break for every 4 hours worked. The timing of this break should be agreed upon between the nurse and the employer.
If a nurse is required to work during their meal break, they will receive overtime pay for the time worked until they can take an uninterrupted break, even if they manage to get a meal break later in the shift.
Back to top
The award sets minimum pay rates for nurses based on their classification level and experience.
As outlined in the Nurses Award 2020, a 'pay point' refers to specific levels within the wage structure that correspond to a nurse's qualifications and experience. These wages are updated annually, typically at the start of each financial year.
For the most current pay rates for each classification, you can access the pay rate tables here.
Progression to the next pay point is determined by the accumulation of experience, measured by hours worked. It is important for nurses to advocate for higher pay based on their qualifications and responsibilities beyond the usual EN role.
For more information on the classification of nurses, download our eBook here: CLICK.
Note: As of January 2025, nursing assistants previously covered by the Nurses Award and working in aged care will transition to either the Aged Care Award or SCHADS Award. To read more about these changes, access our comprehensive breakdown here.
Allowances are additional payments made to employees on top of their regular wages or salary.
These payments are designed to compensate employees for specific aspects of their work or to cover work-related expenses they may incur.
Nurses are also entitled to various allowances depending on their roles and duties. The table below outlines the primary allowances and what each one covers:
|
Allowance |
Description |
|
On-call allowance |
Paid to nurses required to be on call at their residence or another agreed location. Different allowances apply depending on whether the shift is: Monday to Friday |
|
Given to nurses who must wear a specific uniform instead of the employer providing and laundering it. |
|
|
For nurses whose uniforms are not laundered by the employer, to help cover the cost of cleaning. |
|
|
Paid during overtime if nurses are not provided with a meal, allowing them to have extra meals when working beyond their regular hours. |
|
|
Compensates nurses who are required to use their own vehicle for work-related travel. |
Search our database for all relevant allowances to your modern award.
Back to topThe superannuation guarantee is the minimum contribution employers are legally required to pay into an employee's superannuation fund.
The current superannuation rate is 11.5% of an employee's ordinary time earnings. This rate will see another increase next year, continuing a trend of annual adjustments until it reaches 12%.
Back to topPaid overtime refers to the additional payment received for hours worked beyond the ordinary schedule, with specific regulations detailing the pay rates and conditions for various types of employees, including casual and part-time workers.
For casual employees, overtime is any work performed beyond 38 hours per week or 76 hours per fortnight. When a nurse works overtime, they are entitled to be paid at a higher rate, which varies depending on the day and time the overtime is worked.
Here's a breakdown of the overtime rates under the Nurses Award:
It's worth noting that under certain circumstances, nurses may be entitled to time off in lieu of overtime payment. The amount of time in lieu, in this case, will equate to each hour of overtime worked. For example, if a nurse works 3 hours of overtime, they are entitled to 3 hours of time off in lieu.
However, when a penalty rate may apply (see discussion below), the amount of time off in lieu is calculated based on the penalty rates.
For example, if a nurse works 2 hours of overtime that would have been paid at 1.5 times their ordinary rate, they would be entitled to 3 hours of time off in lieu (2 hours worked x 1.5). If they work an additional 1 hour of overtime that would have been paid at 2 times their ordinary rate, they would be entitled to an additional 2 hours of time off in lieu (1 hour worked x 2).
In this case, the total time off in lieu for the 3 hours of overtime worked would be 5 hours (3 hours + 2 hours).
This arrangement must be agreed upon between the employer and employee and should be documented in writing.
Back to topThese penalty rates are designed to compensate nurses for working shifts that may be less desirable or disruptive to their personal lives.
Penalty rates under the Nurses Award are as follows:
Employers must ensure they are paying their nursing staff the correct overtime and penalty rates as outlined in the award. Failure to do so can result in underpayment claims and legal action.
Back to top
One of the most important leave entitlements for nurses is annual leave. Full-time and part-time nurses are entitled to four weeks of paid annual leave for each year of service. This leave accrues progressively throughout the year and can be taken as soon as it accrues, subject to the employer's approval.
Nurses who work certain shift arrangements, such as those regularly working Sundays or public holidays, may be entitled to an additional week of annual leave.
In addition to their ordinary pay, nurses are entitled to annual leave loading during their annual leave period. Annual leave loading is an extra payment that is made on top of the employee's base rate of pay during annual leave.
For nurses who are not shiftworkers, the annual leave loading is 17.5% of their ordinary pay, calculated on a maximum of 152 hours (4 weeks) of annual leave per year. For example, if a nurse's ordinary weekly pay is $1,000, their annual leave loading would be $175 per week of annual leave taken.
For shiftworkers, the annual leave loading is either 17.5% of ordinary pay or the weekend and shift penalties the employee would have received had they not been on leave, whichever is higher.
So, if the nurse normally works on a Saturday and receives 150% of their ordinary pay, the leave loading would be 50% instead of 17.5% as the penalty rate is higher.
When working out which option is higher, look at the entire period of the leave request for potential penalties, and compare that with the option of giving a 17.5% loading. The higher of the two is what needs to be paid.
An excessive leave accrual is defined as more than ten weeks of paid annual leave for a non-shiftworker or 12 weeks for a shiftworker.
If an employee has an excessive leave accrual, the employer and employee should try to agree on how to reduce or eliminate the excess leave. If an agreement cannot be reached, the employer may direct the employee in writing to take one or more periods of paid annual leave, subject to certain conditions.
The employee must take the leave as directed but may request to take leave as if no direction had been given.
Alternatively, if an employee has had an excessive leave accrual for more than six months and hasn’t been directed to take leave by their employer, they may give written notice to the employer requesting to take one or more paid annual leave, subject to certain conditions. The employer must grant the leave requested.
Employers and employees may also agree in writing for the employee to take annual leave in advance before they have accrued the entitlement, or to cash out a particular amount of accrued annual leave. But, there are specific rules around these arrangements to ensure employees still have sufficient leave available.
Personal/carer's leave is another key entitlement for nurses. This leave allows nurses to take time off when they are ill or injured or when they need to care for a member of their immediate family or household who is sick or injured. Full-time nurses are entitled to 10 days of paid personal/carer's leave per year, while part-time nurses receive a pro-rata entitlement based on their hours worked.
Nurses are entitled to be absent from work on prescribed public holidays and, if required to work, must be paid the appropriate penalty rates as outlined in the award.
The public holidays recognised under the Nurses Award are:
Any additional public holidays declared by state or territory governments will also be recognised under the award.
Employers must ensure they are providing their nursing staff with the appropriate leave entitlements and public holiday provisions as outlined in the Nurses Award and the NES. Failing to do so can lead to legal consequences and damage to the employer-employee relationship.
Making sure you're compliant with the award is essential to avoid underpayment claims and legal issues, but handling this manually takes a lot of time and can lead to mistakes.
Automated payroll software can help make award compliance much easier. By automating award interpretation and calculation, payroll software can help you stay compliant with the Nurses Award and other relevant awards and legislation.
Features like automatic pay rate updates, allowance calculations, and leave accrual management can save you time and reduce the chance of errors.
If you want to make your payroll processes simpler and more efficient while ensuring award compliance, it's worth looking into automated payroll software options.
At Pay Cat, we offer solutions designed specifically for the healthcare industry and the Nurses Award, making it easier to manage your payroll obligations.