Ensure employees are correctly classified under their Modern Award.
Review of employee classifications against the relevant Modern Award requirements. We ensure you're applying the Award correctly, employees are paid at the right classification level, and you're not exposed to back pay claims.
The Challenge
Common problems we solve
You don't fully understand the Modern Award classifications and pay rates
Employees are misclassified (paid at lower level than their role warrants)
You're underpaying because you don't know the Award minimum rates
You don't update classifications when employees are promoted or roles change
You haven't documented your classification decisions, making it hard to defend if questioned
What's Included
Here's what you receive
Modern Award Identification
Identification of the correct Modern Award applying to each employee based on role, industry, and employment type.
Role Assessment Against Award
Assessment of each employee's role and responsibilities against the Award classification levels to confirm correct classification.
Pay Rate Audit
Comparison of current pay rates against Award minimum rates for each classification, identifying any gaps.
Classification Recommendations
Recommendations for correct classification and pay rates for each employee, with back pay calculation if applicable.
Documentation
Written record of classifications reviewed, decisions made, and confirmation of Award compliance for each role.
Why It Matters
How it works
Modern Awards set out minimum pay rates for different classification levels. If you're paying someone less than the Award minimum for their role, you're in breach and liable for back pay. This is a common compliance gap. Many small businesses don't fully understand their Award's classification structure and inadvertently underpay. Others don't update classifications when roles change. Classification reviews ensure you're paying correctly, protect you from back pay claims, and give you confidence in compliance. The review also creates documented evidence that you've checked compliance, which is important if a Fair Work audit occurs.
Confirmation that classifications match Modern Award requirements
Identification of any misclassifications costing you money
Protection from back pay claims for underpayment
Clear documentation of classification decisions
Confidence you're meeting Award compliance
Reduced Fair Work audit risk
The Process
How classification reviews works
Relevant Modern Award identified for each employee
Employee roles and responsibilities documented and assessed against Award classification levels
Current pay rates compared against Award minimum rates for classification
Any gaps or misclassifications identified and quantified
Recommendations made for correcting classifications and back pay (if any)
Updated classification and pay rates confirmed and documented
Best For
Who this service is ideal for
Businesses wanting to confirm Award compliance and avoid back pay claims
Growing teams where classification consistency is important
Businesses in high-compliance-risk industries or that have had Fair Work contact
Owners wanting confidence they're paying correctly under the Award
Complementary Services
Related services to explore
Rate Monitoring
Ongoing monitoring of Modern Award rates and Annual Wage Index updates. We track when rates change, calculate new minimum pay levels, and ensure your pay rates stay compliant throughout the year.
Continuous Auditing
Regular, ongoing audits of payroll, employment records, and Award compliance. We monitor for payment errors, classification issues, leave underpayment, and other compliance gaps, catching problems early.
Award Interpretation
Deep-dive interpretation of your Modern Award: what it requires, how it applies to your business, minimum entitlements, and how to ensure compliance. Includes Award-specific guidance tailored to your industry and roles.
FAQ
Frequently asked questions
Classification is the Award level (e.g., Level 1, Level 2, Manager). Pay level is the weekly or hourly rate for that classification. You must pay at least the Award minimum for the employee's classification.
Some Awards allow a probationary rate for new employees (usually 80-90% of the standard rate for a limited period). But you must follow the Award—you can't just pay whatever you want.
That's underpayment. You must back-pay the difference. The employee can claim back pay for the past 6 years. Better to identify and fix this proactively.
Yes. If someone moves to a different role or more responsibility, their classification should reflect the level of work they're doing under the Award.
Most modern Awards have clear classifications. Some have broader levels with variations based on experience or responsibility. Review the Award carefully or seek advice to determine the right classification.
Can't find the answer you're looking for? Get in touch
Ready to get started with classification reviews?
We can help you implement classification reviews and start seeing results. Book a consultation to discuss your specific needs and explore how this service can transform your business.