27 June 2024 decision [2024] FWCFB 298
Citation: [2024] FWCFB 298
What happened
The Fair Work Commission (FWC) was considering when wage increases determined in the Stage 3 Aged Care decision should take effect. This decision affects workers in residential aged care, home care, and related industries. The Stage 3 decision increased wages and altered classifications for direct care workers (personal care workers and assistants in nursing) and indirect care workers. The Commonwealth proposed a phased implementation: full increases for indirect care workers from 1 January 2025, and 50% increases from 1 January 2025 and 50% from 1 January 2026 for direct care workers and home care workers. Unions argued for an earlier start date of 30 June 2024. Aged care providers supported the Commonwealth's position, citing funding and operational challenges.
What was decided
The FWC determined the operative dates and phasing-in arrangements for the Stage 3 Aged Care wage increases. The Commission agreed with the Commonwealth's proposed phased approach. Indirect care workers will receive full increases from 1 January 2025. Direct care workers and home care workers will receive 50% of the increases from 1 January 2025 and the remaining 50% from 1 January 2026. The FWC considered submissions from unions and aged care providers, balancing the need for timely wage increases with the practicalities of funding and implementation. The Commission acknowledged the importance of rectifying gender undervaluation but found the Commonwealth’s approach appropriate given the complexities of funding and operational changes.
What it means for employers
Employers in the aged care sector should prepare for phased wage increases, starting from 1 January 2025. They need to work with the Commonwealth to ensure funding is available and operational changes are implemented to accommodate the increases. Careful planning and communication with employees are crucial to avoid disruptions and ensure compliance.
What it means for employees
Aged care workers will receive wage increases in two stages, with some workers receiving the full increase from 1 January 2025. Employees should be aware of the phased implementation and understand how it affects their pay. The decision highlights the ongoing efforts to address gender undervaluation and improve working conditions in the aged care sector.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →