A general overview of the Professional Employees Award

Published

Aug 25, 2024

The Professional Employees Award 2020 covers a diverse range of professional roles across various industries, including fields like engineering, science, and information technology. This award sets out the minimum standards for wages, working conditions, and entitlements for professionals, ensuring they're compensated fairly for their skills and professional expertise.

In this article, you'll find a summarised overview of the essential elements of the Professional Employees Award, including coverage, employment classifications, rostering arrangements, pay scales, allowances, superannuation obligations, and leave entitlements. Familiarity with these provisions is important for ensuring compliance with legal requirements and for promoting fair and consistent employment practices within your organisation.

For detailed information on each topic, we provide links throughout this article to guide you to in-depth resources.

Note: The information provided in this article is accurate as of 13/08/2024. As award conditions and rates are subject to change, please refer to the latest version of the Professional Employees Award 2020 for the most current information.

Professional Employees Award coverage

The Professional Award is specifically designed to cover a range of professional roles across various industries. Here's an overview of employees covered by this award:

Who's covered

  • Professional engineers and scientists: This award applies to employees performing professional engineering, and those engaged in scientific roles, including tasks like research, development, and project management.
  • Information technology and telecommunications professionals: Employees in the information technology industry and the telecommunications services industry, such as system administrators, software developers, and telecommunications engineers, are covered under this award.
  • Medical research professionals: Those undertaking professional medical research duties and working in medical research institutes, such as clinical trial coordinators and biomedical scientists, are covered under this award.
  • On-hire employees: Professionals hired through staffing agencies to work temporarily in the above sectors are also covered. This includes contract engineers and temporary IT consultants brought in for specific projects or short-term support.

Who isn't covered

  • Administrative or operational support staff: Administrative support staff or those performing operational tasks that don't require professional qualifications aren't covered by this award. For example, a marketing executive in an engineering firm doesn't fall under the Professional Employees Award.
  • High-level executives and senior managers: As specified by the Fair Work Act, certain high-level executives or senior managers are excluded from modern awards, including this one.
  • Employees under modern enterprise awards: Professionals covered by bespoke enterprise agreements or other specific awards, such as the Black Coal Mining Industry Award for engineers in the mining sector, aren't covered under this award.
  • State reference public sector employees: Those working under state-specific public sector awards or transitional awards are excluded, such as professionals employed in state-run medical research facilities.

Practical example: Dr. James is a biomedical scientist working at a private medical research institute, focusing on developing new medical technologies. Since his role involves professional scientific duties in the private sector, he's covered by the Professional Employees Award, ensuring he receives the appropriate wages and working conditions specific to his field.

Learn more about Professional Employees Award coverage

Employment types and ordinary hours under the Professional Employees Award

The Professional Employees Award 2020 categorises employment into three primary types, each with specific guidelines for managing ordinary hours:

  • Full-time: Employees work an average of 38 hours per week, providing stability and regular schedules. These hours can be averaged over up to 13 weeks to allow flexibility in scheduling.
  • Part-time: Employees work fewer hours than full-time staff, with their schedules clearly outlined in their contracts. Benefits are proportional to their hours worked, ensuring fairness.
  • Casual: Employees are engaged on an as-needed basis without guaranteed hours. They receive a higher hourly rate to offset the lack of job security, with a minimum engagement of two consecutive hours per shift to ensure fair compensation.

These provisions help employers maintain consistent and fair working conditions across all employment types under the Professional Employees Award.

Rostering under the Professional Employees Award

The Professional Employees Award provides structured guidelines to ensure fair and efficient roster management, tailored to the needs of professional employees.

Employers are expected to provide regular and predictable working hours, agreed upon in writing before the role begins. Although the award doesn't specify a notice period for changes to rosters, employers must consult with employees before making adjustments, especially considering any potential impact on their personal or family responsibilities.

Employees have the right to request flexible working arrangements, which employers must evaluate in line with the National Employment Standards (NES). Such requests can only be denied on reasonable business grounds, ensuring that employee needs are fairly considered.

Breaks and rest periods

While the Professional Employees Award doesn’t explicitly detail break entitlements for employees covered, it aligns with the general standards of the NES. Employees typically receive a 30 to 60-minute unpaid meal break if they work more than five hours at a time. Additionally, it's common practice to provide a 10-minute paid rest break for every four hours of continuous work, promoting a balanced and healthy work environment.

Learn more about Professional Employees Award employment types, ordinary hours, and rostering

Professional Employees Award pay rates

The Professional Employees Award sets clear minimum wage rates for various professional roles. For example, a Level 1 graduate professional with a 4 or 5-year degree earns an annual salary of $63,217, or $31.89 per hour.

Employers must pay for all hours worked, with part-time employees receiving the minimum hourly rate and casual employees getting a 25% loading. Wages should be paid at least monthly, with each pay period clearly detailed on the payslip, along with all allowances and deductions.

Upon termination, employers have seven days to settle all outstanding wages and entitlements, in line with the Fair Work Act 2009 and company policies.

See full list of Professional Employees Award pay rates

Allowances under the Professional Employees Award

The Professional Employees Award ensures that employees covered by the award receive fair compensation for additional duties and work-related expenses. For instance, those required to travel for work are reimbursed for all reasonable expenses incurred, along with compensation for excess travel time.

Key allowances include a vehicle allowance of $0.98 per kilometre for those using their personal vehicles for work, provided this is mutually agreed upon. Additionally, employees requiring special equipment or clothing for their roles must be provided with these at no cost. Each of these allowances is adjusted annually according to changes in the Consumer Price Index (CPI).

See full list of Professional Employees Award allowances

Professional Employees Award superannuation

Superannuation is an essential part of employee compensation under the Professional Employees Award. Employers are required to contribute 11.5% of an employee’s ordinary time earnings (OTE) to a superannuation fund to comply with the Superannuation Guarantee (Administration) Act 1992.

Employees aged 18 and over, or those under 18 working more than 30 hours a week, are eligible for these contributions. Full-time, part-time, and casual employees are all included. Employees typically have the right to choose their superannuation fund. If they don’t select a fund, the employer must check with the ATO for a stapled fund. If none exists, contributions can be made to an approved fund.

Employers must continue superannuation contributions during periods of paid leave and for up to 52 weeks during a work-related injury or illness if the employee remains employed. Employees also have the option to make voluntary contributions from their wages, which can be adjusted with three months’ written notice.

Professional Employees Award overtime and penalty rates

The Professional Employees Award provides guidelines for compensating employees who work beyond their ordinary hours or during unsociable times:

Overtime rates

Under the Professional Employees Award, overtime is paid at the standard hourly rate, unlike other awards that offer additional rates. For example, if a full-time employee works beyond the standard ordinary hours (a 38-hour week), they're paid their normal hourly rate for the extra hours worked.

Employees can opt to take time off instead of receiving overtime pay, with the time to be used within six months. If the employee's employment ends with unused overtime, the employer must pay for the overtime hours.

Penalty rates

Penalty rates under the Professional Employees Award compensate employees covered by the award for working during specific hours that fall outside the typical work schedule. For instance, work performed on a Sunday is paid at 150% of the ordinary hourly rate.

Practical example: Emily, a part-time IT specialist, works six hours on a Sunday. Since Sunday work is compensated at 150% of her regular hourly rate of $35, she earns $315 for those six hours.

Learn more about Professional Employees Award overtime and penalty rates

Professional Employees Award leave entitlements and public holidays

The Professional Employees Award 2020 outlines comprehensive leave entitlements and public holiday provisions, supporting employees across various aspects of their professional and personal lives. These provisions are aligned with the NES to ensure fair treatment and consistent benefits.

Annual leave

Full-time employees are entitled to four weeks of paid annual leave per year, while part-time employees accrue leave on a pro-rata basis, according to their hours worked. For those with excessive leave accruals (more than eight weeks), the award encourages employers and employees to collaboratively reduce the leave balance. If no agreement is reached, employers may direct the employee to take leave, ensuring a minimum of six weeks' accrued leave remains.

Other types of leave

The Professional Employees Award provides additional leave types to address various needs. Full-time employees receive 10 days of paid personal/carer’s leave annually, with part-time employees accruing it proportionally. Compassionate leave grants two days per occasion for a family member’s death or serious illness.

Employees can take up to 12 months of unpaid parental leave, with an option to extend for another 12 months. Community service leave covers activities like jury duty, with make-up pay, and employees are entitled to 10 days of paid family and domestic violence leave annually.

Public holidays

Employees (excluding casuals) under the Professional Employees Award are entitled to a paid day off on recognised public holidays as per the NES. Employers can request an employee to work on a public holiday if the request is reasonable.

If an employee is required to work on a public holiday, they must be engaged or paid for at least four hours and compensated at the appropriate public holiday penalty rates. Additionally, employers and employees can agree to substitute another day for a public holiday if necessary.

Learn more about Professional Employees Award leave entitlements

Key considerations for the Professional Employees Award

Understanding the specific provisions of the Professional Award is an essential element of maintaining compliance and ensuring fair treatment of all employees covered by this award. Below are some key aspects that employers should be mindful of:

  • Coverage exclusions for support roles: One nuance of the Professional Employees Award is that it specifically excludes administrative and operational support staff who don’t require professional qualifications. Employers might mistakenly classify these roles under the Professional Employees Award when they should be covered by a different award, such as the Clerks—Private Sector Award.

    Why it matters: Employers might mistakenly classify these roles under the Professional Employees Award when they should be covered by a different award, such as the Clerks—Private Sector Award. Misclassifying support staff in professional industries can lead to incorrect pay rates, entitlements, and compliance issues.
  • Full-time employee minimum rates: The Professionals Award presents a minimum annual salary rather than a minimum weekly rate for full-time employees.

    Why it matters: Misinterpreting the annual rate could lead to incorrect payment calculations, which may result in underpayment or overpayment. Accurate understanding of these rates is essential for ensuring compliance with the award and maintaining employee satisfaction.
  • Overtime payments: Unlike other modern awards that specify higher rates for overtime hours worked (such as time and a half or double time), the Professional Employees Award mandates that overtime hours be paid at the employee’s normal hourly rate.

    Why it matters: Employers need to accurately calculate overtime hours at the standard rate to prevent payroll discrepancies.
  • Exemptions for higher-salaried employees: Employees covered by the award who have a contractual entitlement to an annual salary exceeding the minimum annual wage by 25% or more are exempt from additional payments for overtime hours, time off instead of payment for overtime, and penalty rates.

    Why it matters: It's important for employers to identify these employees and document their status properly. Mismanagement of this exemption could lead to unnecessary record-keeping obligations and potential compliance issues.
  • Limited guidance on wage payment: The Professional Award offers minimal guidance on the specifics of wage payment, such as frequency and methods. Employers must rely on the general guidelines provided by the Fair Work Act 2009 and relevant regulations to meet their wage payment obligations

    Why it matters: Ensuring compliance with these guidelines is vital to avoiding disputes and maintaining a clear, transparent payroll process. 

Simplify Professional Employees Award compliance with Rippling

Managing Professional Employees Award compliance can be challenging because of its broad coverage, detailed pay structures, and complex leave entitlements. Rippling’s unified platform simplifies this process, helping your business stay compliant and ensuring fair treatment of employees across all aspects of the award. Key features include:

Comprehensive coverage and compliance tools

Rippling’s platform offers custom-built alerts to help keep you updated and on top of award compliance. With detailed reporting, audit support, and customisable templates, you can ensure that your business remains compliant with all facets of the Professional Employees Award.

Streamlined time, attendance, and leave management

With features like time and attendance tracking and leave management, Rippling ensures that all processes align with the award’s stipulations, reducing manual work and consequent errors, and enhancing operational efficiency.

Simplified payroll, overtime, and superannuation

Rippling simplifies the complexities of payroll, including overtime and superannuation compliance. The platform automatically adjusts pay, overtime, and penalties according to award requirements, and calculates superannuation contributions accurately.

Real-time insights and integration

Rippling’s seamless integration with existing systems ensures accurate financial management, offering peace of mind and operational flow improvements.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.

last edited: August 25, 2024

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The Rippling Team

Global HR, IT, and Finance know-how directly from the Rippling team.