Businesses can sometimes make changes to the way they operate or to the nature of the business. For example, a wholesale business may open a retail store, or a takeaway café may start offering sit down table service.

There are many ways a business may change what it does or how it operates.

This kind of change may:

• change the industry that the employer operates in, and
• affect its award coverage.

How award works

Different awards have different rules specific to the industry or occupation they cover.

If the award that covers a business has changed, it may mean that there are changes to conditions of employment applying to employees, such as:

• minimum pay rates
• ordinary hours of work, penalty rates and overtime
• allowances.

If employment conditions have changed, this may lead to the identification of underpayments that will need to be rectified.

Changes to businesses

Whether a business change means award coverage has changed must be assessed on a case-by-case basis. It will depend on the individual circumstances of the business.

In working out whether a business change has changed the award that covers a business or the classifications of its employees some of the factors to be considered include:

• the type of work the business is now doing and whether they remain in the same industry
• whether there has been a change in the workplace location which could impact coverage
• the tasks, responsibilities and training required of each employee after the change.

More help

For more guidance on determining award coverage, see I'm not sure which award covers my business.

Use the Find my award tool on the FWO website to help find which award covers different occupations and industries.

See Award classifications for more information on how to classify employees.

Employers should consider seeking independent advice if they believe there is a change in the nature of their business which may affect award coverage and conditions of employment.