The nature of a business can sometimes change, for example because of changes in circumstances affecting the business and its operations. This may change the industry that the employer operates in and may impact its award coverage.

Government restrictions introduced during the coronavirus pandemic are one circumstance that may affect the nature of a business, such as what services the business can or can’t offer.

Whether or not there will be a change in award coverage must always be considered on a case-by-case basis taking into account the unique facts and circumstances of a particular business. Employers should consider seeking independent advice if they believe there is a change in the nature of their business which may impact their award coverage.

Finding the right award

To find out if an award covers an employer and employee, you must consider whether:

• there’s an industry award covering the work of the business or an occupation-based award which covers the employee’s occupation (or sometimes there is an industry and occupation-based award)
• the award has a classification which covers the work done by the employee.

Industry of the employer

Awards contain coverage and definition clauses, which describe the industry or occupation covered by the award.

An employer who wants to work out whether there’s been a change in award coverage for their business should:

• make an assessment of the types of work currently being done by the business
• consider whether the work is different to what was being done before
• if the work has changed, check whether the coverage and definition clauses of their current award still cover the work being done.

If the employer’s business activities no longer fall within the coverage and definition clauses of their award, the employer should consider whether a different award may cover them and their employees.

Award classifications

If an employer believes that their business is covered by a different award, they should also consider whether there are classifications that describe the work of their employees in that award. For an employee to be covered by an award, there needs to be a classification that covers the work that they do.

Classification definitions are generally contained in a schedule to the award and will often list:

• the skills required to be classified at a level
• examples of tasks done by an employee classified at a level
• the qualifications required to be classified at a level.

More help

The Find my award tool on the FWO website can help employers find the award that covers their business.

Compliance and enforcement

Working out if a change in award coverage has occurred due to coronavirus can be a complex issue, depending upon the specific facts and circumstances.

As noted above, employers should consider seeking independent advice if they believe there is a change in the nature of their business which may affect award coverage.

For 2022-23, our main priority is supporting workplaces as they recover from the impacts of COVID-19. This includes supporting small business and those sectors hardest hit by coronavirus. Read more information about our priorities on our priorities page.

The FWO continues to enforce workplace laws in a proportionate manner during the coronavirus pandemic, in line with our Compliance and Enforcement Policy.