The Social and Community Services Industry has a number of industrial awards that may apply to employees in the industry. These awards determine the rate of pay that must be paid for the work undertaken. If you fail to get this right, it is likely that you will have significant underpayment issues to deal with. This can be both costly and time-consuming.
Unfortunately, there are some unique challenges for employers in the social and community services industry when it comes to determine which award applies.
This is because, in Australia there are two industrial relations systems that apply in our industry. The Federal system, which is overseen by a tribunal called the Fair Work Commission and the State system which is overseen by the WA Industrial Relations Commission. Both have issued awards that apply to the SACs industry, and these awards have different terms and conditions.
In order to be covered by the Awards of the Fair Work Commission, you have to be what is called a ‘constitutional corporation’. Which means you have to be involved in a form of trading or running a financial institution such as a bank. If you fall in this category, you will be covered by the Federal Award – the Social Community Home Care and Disability Services Award.
If you are not a trading or financial corporation, you would be covered by one of the two awards of the Western Australian Industrial Relations Commission.
If you receive more than 30% of your income from a trading source, you will be deemed to be a trading corporation and covered by the SCHDS Award. So you need to consider the following questions: