The Australian Retailers Association (ARA) acknowledges the decision of the Federal Court of Australia today regarding historical underpayment of salaried workers under the General Retail Industry Award (GRIA).
"This case demonstrates the challenges businesses across the retail sector face in complying with the profoundly complex General Retail Industry Award," said ARA CEO Chris Rodwell. "It highlights just how compelling the case for award simplification is. Both employees and employers should be better able to understand the award to avoid compliance issues.
"With 994 different pay rates across almost 100 pages, the GRIA is incredibly difficult for employers to understand. It is clearly not fit-for-purpose for larger employers. The expectation that smaller mum-and-dad operated businesses, who lack legal and HR resources, can use the award appropriately is entirely unreasonable.
"This complexity has been the driver for our case in the Fair Work Commission to clarify, simplify and modernise the GRIA.
"If it requires teams of lawyers and HR experts to interpret the GRIA on issues such as when overtime is payable, it's clear the system is broken, and it is setting up businesses to fail.
"It's important to stress this isn't simply about retailers. Employees deserve clarity, too. Workers have the right to understand their pay and conditions clearly and simply.
"The ARA and NRA will continue to advocate for solutions that will make the retail award easy to understand while delivering choice and flexibility to employees," said Mr Rodwell.
"The outcome of today's judgement will have significant implications for many employers navigating complex industrial awards, particularly as it relates to salaried arrangements, including but not exclusively within the retail sector," said Mr Rodwell.
The ARA was not a party to the FWO case.
