Proposed changes to Clerks Award symbolic of upending of traditional working

In a case being heard by the Fair Work Commission (FWC), unions are pushing back on proposed changes by employers to pay entitlements of the 1.8 million administrative and IT workers under the Clerks Award.

The Australian Industry Group (Ai Group) led an employers’ lobby that looked to change workers’ rights under the Clerks Award, including various entitlements, including penalty rates and overtime, if they sign on to have working-from-home arrangements.

Australian Council of Trade Unions (ACTU) secretary Sally McManus said: “The ACTU is alarmed by the sheer scale of the proposals from employers to remove overtime and other entitlements from admin workers.”

On 3 October, Ai Group made a submission to vary the Clerks – Private Sector Award 2020 to add a WFH term, which could see workers under the award forgoing certain pay entitlements if working overtime, from home.

Mauve Group legal and compliance director Lorna Ferrie said: “The push to amend the Clerks Award reflects how remote work is reshaping traditional employment models.”

Although this case currently only applies to workers under the Clerks Award, if successful, it can potentially serve as a model for all workers under industry and occupational awards, Ferrie warned.

Australian Services Union assistant national secretary Scott Cowen said: “Working from home shouldn’t come with a pay cut, and we are calling on the commission to protect workers’ fundamental rights to overtime, penalty rates, and breaks, regardless of where they work.”

“This shift would most likely be felt most by women, who make up a large portion of the administrative workforce covered by the Clerks Award.”

Workers under the Clerks Award are mostly women. According to the Workplace Gender Equality Agency Australia, 66 per cent of the administration sector are female, and just 34 per cent are male.

“If flexibility and entitlements are scaled back, it could affect retention, and how total remuneration is benchmarked at a time when flexibility and work/life balance are now central to employee expectations,” Ferrie said.

“For HR teams, this means reviewing contracts and policies to ensure compliance and avoid employee relations risks.” 

“Employers and HR will need to tread carefully to balance operational needs with fairness and evolving expectations.”