Work Value Case and Annual Wage Review

Introduction

Welcome to our page explaining the changes to rates of pay for many employees at Regis.

From the first full pay period in July, rates of pay for many employees will increase due to one or more of the following reasons:

The Fair Work Commission’s (FWC) Work Value Case (WVC).
The Fair Work Commission’s Annual Wage Review.
Increases to employer superannuation contributions.

Please take some time to read the Frequently Asked Questions in the tab below.

Rates of pay will increase from:

3 July (payable on 19 July) for relevant employees in Queensland, South Australia, and New South Wales and
10 July (payable on 26 July) in Tasmania, Western Australia, Victoria, and Northern Territory.

If you have any questions after reading the detail below, then please speak to your general manager, assistant manager (where applicable), office manager or other leader.

This page will be updated periodically, with further information where applicable.

Thank you for your ongoing support.

Yours sincerely

Carolyn Noumertzis
Chief People Officer

Frequently Asked Questions

Q: What is the background to the Work Value Case (WVC)?
The Fair Work Commission (FWC) recently decided to increase the legal minimum rates of pay of some Award classifications by 15%.

Q: What is an Award and how is it relevant to me?
An Award is a legal document that defines minimum terms and conditions of employment including legal minimum rates of pay. At Regis most employees are covered by an Award.

However, at Regis we also have Enterprise Agreements that have many conditions of employment that are better than the legal minimum of the Awards. An Enterprise Agreement generally applies in lieu of an Award.

Q: How will I be affected by the Work Value Case?
Only some employee classifications were included in the FWC Work Value Case, including:

Personal Care Workers.
Recreational/Lifestyle Activity Officers.
Most senior food service employee in each home covered by an Award.
AINs/ENs/RNs/Nurse Practitioners working in Aged Care.
Aged Care Home Care Workers.

Q: Why have some groups of employees been excluded from the Work Value Case?
This was not Regis’ decision. The FWC limited its Stage 2 WVC decision to the employee groups listed above. The FWC has expressed an intention to review rates of pay for other groups of employees in the future. When more in known about the so-called Stage 3 review, then we will provide further information.

Q: What other potential wage increases may apply?
There are potentially two other sources of wage increases.

Firstly, the Fair Work Commission has also increased, separate from the WVC, all minimum Award rates of pay by 5.75% from the first full pay period commencing on or after 1 July 2023. This increase is referred to as the Annual Wage Review.

This means that there may be two Award outcomes:

For Work Value-related employee classifications the Award increase will be 5.75% (1 July) compounded on 15%.
For other employee classifications the Annual Wage Review will increase minimum Award rates of pay by 5.75%.

For both the Work Value Case 15% and the Annual Wage Review 5.75% it is important to note that these increases will apply to legal minimum Award rates of pay. If Regis pays higher rates of pay under an Enterprise Agreement, then part or all of these two minimum Award increases may not apply.

Secondly, the Department of Health and Aged Care has produced guidelines for how to increase rates of pay related to the Fair Work Commission’s WVC. The guidelines from the Department state that employers, including Regis Aged Care, should increase current rates of pay, for applicable employee classifications by flat dollar amounts (e.g., $4.05 per hour). The amounts stated by the Department represent the same dollar value of the 15% wage increase on the Award rates of pay and would be paid in lieu of the minimum Award Work Value wage increases.

Q: What pay increase will employees receive?
Due to several factors, the precise wage increase is likely to differ for different types of employees. These factors include:

What the current rate of pay paid by Regis is, usually under an enterprise agreement.
The impact of the 15% Work Value and 5.75% increases on Award rates of pay.
The impact of the flat dollar rates of pay (equivalent to 15% on the Award rate of pay) in the Department of Health and Aged Care’s guidelines.

In summary, Regis will consider the three sources of information above, and it will pay the highest rate of pay applicable from those factors.

Q: If I am not entitled to the Work Value increase what will apply to me?
Again, the precise wage increase is likely to differ for different types of employees with the relevant factors being:

What the current rate of pay paid by Regis is, usually under an enterprise agreement.
The impact of the 5.75% increases on Award rates of pay.

In summary, Regis will consider the two sources of information above, and it will pay the highest rate of pay applicable from those factors.

Q: When will wage increases apply from apply?
The Work Value increase will apply from the first pay period commencing after 30 June 2023 and the Annual Wage Review increase will apply from the following day (first full pay period commencing after 1 July 2023).

Relevant pay periods at Regis will therefore be:

3 July 2023 (QLD, SA, and NSW) and payable on 19 July or
10 July 2023 (VIC, TAS, WA, and NT) and payable on 26 July by Regis.

Q: How will this interact with Enterprise Agreement rates of pay?
As noted above, Regis will pay an enterprise agreement rate of pay if it remains the highest appliable rate. However, if a higher rate of pay can be derived from either the Work Value related increase and/or the 5.75% Annual Wage Review then Regis will pay the highest rate.

Q: Are there some employees to whom a wage increase will not apply in July 2023?
Yes, there are a small number of employees where the Work Value increases are not applicable, and the Regis enterprise agreement rate of pay remains the highest rate of pay. In these cases, then Regis will continue to pay the highest rate of pay.

Q: Are there any other changes to my employment conditions?
Other than the changes to rates of pay, all other conditions remain unchanged.

Q: What changes are occurring to superannuation?
Employer contributions to superannuation will change from 10.5% to 11.0% to all ordinary time payments you receive on or after 1 July 2023.

Q: What do I need to do?
Nothing. These increases in rates of pay will apply without any action needed.

Q: Who can I contact if I have any questions?
Please refer your questions to your general manager, assistant manager (where applicable), office manager or otherleader.

Your management team should be able to answer most questions and this team will also have further resources available.