Professional Employees Award 2020 - A Simple Guide for Your Business

Apr 17

Who Does This Award Cover?

The Award applies to employers nationwide within specific professional fields, including those who hire out professional employees to other businesses ("on-hire"). It covers employees working in these six primary "streams":

Engineering: Including graduate and professional engineers.
Scientific Work: Covering various scientific disciplines and research.
Information Technology (IT): Including software design, systems analysis, and IT consultancy.
Telecommunications: Relating to the supply, installation, and maintenance of communication services.
Quality Auditing: Professionals providing advisory or auditing services regarding quality standards.
Medical Research: Specifically for professionals employed by medical research institutes.

Common Roles and Classifications

The Award uses a classification structure (Levels 1 to 5) to determine an employee’s minimum entitlements. Generally, these levels apply to all streams, with one important exception regarding senior roles:

Level 1 (Graduate Professionals): This covers graduates or those starting their professional careers (e.g., Graduate Engineers or Scientists). They work under supervision and handle tasks of limited complexity.
Level 2 to Level 4 (Experienced Professionals): These are "Experienced Professionals" who have several years of experience, work with significant independence, and handle more responsible assignments.
Level 5 (Medical Research Only): Level 5 is a senior classification reserved exclusively for the Medical Research stream.
Quality Auditors: Specific definitions apply to Auditors and Senior (Lead) Quality Auditors within the structure.

Important Note: This Award generally excludes employees who are in purely or principally managerial positions.

Working Hours and Minimum Engagement

To maintain compliance, you must manage your team's time according to these specific rules:

Standard Hours: The full-time work week is 38 hours.
Averaging Hours: You can agree with an employee to average these 38 hours over a period of up to 13 weeks.
Casual Minimums: Casual employees must be paid for at least 2 hours of work every time they are required to attend, even if they finish their tasks earlier.

A Simple Guide to Pay, Penalties, and Allowances

Minimum Pay and Casual Loading

Pay is determined by the employee's "Level" and "Pay Point." However, before setting a starting salary for a Level 1 Graduate, you must verify the length of their degree. Under Clause 14.1, the minimum rate differs:

3-year degree: Minimum of $32.18 per hour.
4 or 5-year degree: Minimum of $33.01 per hour.

As employees gain experience, they must progress through Pay Points on their work anniversary. If you hire casual employees, you must pay a 25% casual loading on top of the minimum hourly rate.

Penalty Rates

You are required to pay extra "penalty" rates for work performed at your direction during the following times:

Monday to Saturday: Before 6:00 am or after 10:00 pm.
Sundays: Higher rates apply all day.
Public Holidays: Higher rates apply all day (note: you and your employee can agree to substitute a public holiday for another day to provide flexibility).

Allowances and Leave Loading

Vehicle Allowance: If an employee agrees to use their private vehicle for work, you must pay them at least $0.98 per kilometer.
Travel Costs: You must reimburse all reasonable expenses for work-related travel, including meals and accommodation.
Equipment: You must provide necessary equipment or special clothing unless the employee chooses to provide their own.
Annual Leave Loading: When an employee takes annual leave, you must pay an additional 17.5% annual leave loading on their base rate of pay (subject to the cap outlined in Clause 19.2).

The Right to Disconnect

The Right to Disconnect laws grant employees the right to ignore work-related contact (calls, emails, texts) outside of their working hours unless the refusal is unreasonable.

Why Correct Classification Matters

"Classification" is the formal process of deciding which Level and Pay Point an employee fits into based on their qualifications and experience. This is a critical compliance step because it dictates the minimum salary you must legally pay. You are required to inform every employee of their classification in writing when they start or if their duties change.

Key Things Employers Get Wrong

Avoid these common legal pitfalls:

The "Over 45" Notice Period: While the standard notice period for termination is one month, you must provide 5 weeks' notice if the employee is over 45 years of age and has completed more than 5 years of continuous service.
Strategic Salary Exemption: Under Clause 18.6, if you pay an employee at least 25% above the minimum award rate, you are exempt from the obligations regarding penalty rates, overtime pay, and specific record-keeping. This is a highly effective way for small businesses to reduce administrative burdens for senior staff.
Graduate Progression: Failing to move a graduate to a higher pay point on their anniversary is a common way businesses accidentally underpay staff.

Practical Tips for Staying Compliant

Documentation: Provide a written letter to every new starter stating their classification, degree length (3 vs 4+ years), and employment type.
Remote Work Records: If an employee performs work remotely on electronic devices outside ordinary hours, they must provide you with a timesheet or record of that work within a reasonable period (Clause 18.2(c)). Ensure you have a process for this.
Extra Hours Log: Unless the employee meets the "25% exemption" rule, you must keep an accurate log of all hours worked outside the standard 38-hour week, including nights and weekends.
Policy Review: Implement a clear "Right to Disconnect" policy to manage expectations regarding after-hours communication.

While this Award is detailed, compliance is manageable through good systems and clear communication. If this raised questions for your business, FiveSeven can help review your approach and identify any gaps before they become issues.

The information above forms part of our Understanding Your Award series and provides a high-level overview only. Further obligations may apply depending on your business and workforce. This Information is current at the time of publication. Workplace laws and awards may change.

The information above forms part of our Understanding Your Award series and provides a high-level overview only. Further obligations may apply depending on your business and workforce. This Information is current at the time of publication Jan 2026. Workplace laws and awards may change.