What is Award classification?
Payroll & people. A plain-English definition for Australian business owners.
Award classification is the process of determining which classification level within an applicable Modern Award an employee falls under, based on their actual duties, qualifications, and experience.
Classification determines the minimum wage rate, applicable allowances, and other entitlements. Misclassification is the most common payroll-compliance error in Australian SMEs; classifications should be reviewed annually and whenever a role's scope materially changes.
In a connected back office this sits with the People hub, where Valont runs award compliance, hr & ir advisory and employer advice line for Australian SMEs as one team. The full definition set is on the glossary.
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General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.