IR update: gender undervaluation – priority awards review outcome

28 May 2025
Gender Undervaluation IR Changes IR Update

Australian Business Lawyers & Advisors, on behalf of Business NSW and Australian Business Industrial, actively participated in the gender undervaluation proceedings.

By Alana Rafter, Senior Associate, Australian Business Lawyers & Advisors



WHAT YOU NEED TO KNOW

On 16 April 2025, the Fair Work Commission (the Commission) published its first and long-awaited decision in its Gender Undervaluation – Priority Awards Review (the Decision).

The Decision signals that major changes are to be made to the following “priority” awards:

  • Children’s Services Award 2010;
  • Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award);
  • Health Professionals and Support Services Award 2020 (Health Professionals Award);
  • Pharmacy Industry Award 2020 (Pharmacy Award); and 
  • Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020 (ATSI Award).

The changes include significant increases to award minimum rates and changes to the classification structure and definitions. Whilst some of the changes are concrete, the overwhelming majority will be subject to further scrutiny via a series of conferences and, if necessary, further hearings with the interested parties.

With the exception of the Pharmacy Award, the Commission has not published draft determinations or indicated a fixed timeline for implementation of the provisional views for the priority awards.

This article addresses the common questions from Business NSW members arising from the Decision, with a particular focus on the Children’s Service Award, SCHADS Award and Health Professionals Award.


Q&a – GENERAL MATTERS


1. Did the Commission make findings about “gender undervaluation”? 

Yes. The Commission found that the following award classifications had been subject to gender undervaluation:

  • pharmacists covered by the Pharmacy Award;
  • health professionals, pathology collectors and dental assistants covered by the Health Professionals Award;
  • social and community services employees, crisis accommodation employees and home care employees in disability care covered by the SCHADS Award;
  • dental assistants and dental/oral therapists covered by the ATSI Award; and
  • children’s services employees covered by the Children’s Services Award.


2. What’s the difference between a “finding” and a “provisional view” in the Decision?

This is an excellent question because the Commission has set out more provisional views than findings! In a nutshell: 

A “finding” means the Commission has reached a final view about an issue; a decision or determination has been made and it can no longer be the subject of submissions and evidence.

A “provisional view” sets out a possible finding the Commission might make (and may very well be leaning towards doing so). However, unlike a finding, no final view has been reached. Think of them as “proposals” that are yet to be set in stone.

By framing the bulk of the proposed changes to the awards as “provisional views”, all interested parties have an opportunity to consider and respond to the proposed changes to each award. Critically, those responses may:

  • raise practical issues with the proposed reforms, which could not have been identified until the specifics of a proposal were considered (e.g. another provision of the award will require amendment or businesses required more time to prepare for the changes);
  • propose an alternative course or timeline (e.g. a shorter or longer phasing-in period); or
  • raise any other issues in relation to the provisional views of the Commission. 

Several parties have already seized this opportunity to respond in relation to the Health Professionals Award.

Q&a – CHILDREN’S SERVICES AWARD


Key Findings

3. What “findings” have been made in relation to children’s services employees?

The Commission has determined that:

  1. the minimum award wages for children’s services employees (CSEs) will increase, arising from a finding that CSEs have been subject to “gender-based undervaluation”; and
  2. the “caring skills benchmark” set in the Aged Care Work Value proceedings for Certificate III qualified Personal Care Workers/Home Care Workers is to apply to Certificate III qualified CSEs. That benchmark is $1,269.80 and represents an increase of 23%.

In light of those findings, the Commission proposes to amend the existing minimum award rates and classification structure for CSEs in the Children’s Services Award (see questions 5 and 6 below).

4. Will changes be made to the support workers rates and classification structure?

No. There will be no change to the minimum award wages or classification structure of support workers covered by the Children’s Services Award.


Key Provisional Views

5. How does the Commission propose to change the classification structure?

The Commission proposes that the existing classification structure for CSEs should be removed and replaced with a new, simplified eight level classification structure that is substantially based on the qualifications framework for the early childhood education and care sector:

  • Level 1 – Introductory Educator
  • Level 2 – Educator
  • Level 3 – Qualified Educator (Cert III)
  • Level 4 – Experienced Educator
  • Level 5 – Advanced Educator (Diploma)
  • Level 6 – Lead Educator / Room Leader
  • Level 7 – Assistant Director
  • Level 8 – Director

If adopted, the Commission has indicated that transitional arrangements would address how existing classifications would fit into the new structure.

6. How much will minimum rates increase for CSEs? 

Presently, the proposed increases range from 9.4% to 27.8%. The specific increase will depend on the CSE’s current classification level.

7. Is there a proposed operative date or phasing-in arrangement? 

Yes. The Commission’s provisional view is that the proposed changes could be operative from 1 August 2025 and phased-in over a period of 5 years. As proposed, the first instalment would result in all CSEs receiving a 5% increase on 1 August 2025. 


Status

8. What’s Next?

Shortly, the Commission will list the proceedings for conference, so that all interested parties can provide a response to the proposed new minimum rates and classifications structure.


At the time of writing this article, no future listing has been confirmed for proceedings relating to the Children’s Services Award.

Q&a – SCHADS AWARD


Key Findings 

9. What “findings” have been made in relation to the SCHADS Award?

The Commission has determined: 

  1. that increases to the minimum award wages for social and community services (SACS) employees, crisis accommodation employees and home care employees covered by the SCHADS Award are necessary after finding that existing rates do not properly reflect the value of the work performed (in part due to historical undervaluation based on gender); and
  2. that there is an equivalence of work value in all direct care functions in the classification streams in the SCHADS Award (i.e. across disability services, home care, SACS work, etc).

To give effect to those findings, the Commission proposes to amend the existing minimum award rates and classification structure for all classifications in the SCHADS Award.

Key Provisional Views

10. How does the Commission propose to change the classification structure?

The Commission proposes that the existing classification structures in the SCHADS Award should be removed and replaced with a single and uniform classification structure, which would also provide for a unified set of minimum wage rates across the different types of work covered by the SCHADS Award.

The new ‘uniform’ classification structure would consist of nine levels:

  • Level 1 – Introductory administrative/ clerical employee
  • Level 2 – Introductory home care/social and community services employee
  • Level 3 – Qualified home care/ social and community services employee
  • Level 4 – Senior home care/social and community services employee
  • Level 5 – Specialist/supervisory employee
  • Level 6 – Professional employee
  • Level 7 – Senior professional employee
  • Level 8 – Manager/Senior specialist
  • Level 9 – Senior Manager

Upon implementation of the proposed structure, the Commission proposes to revoke the Equal Remuneration Order (ERO). This is because the proposed minimum wage rates “will eliminate the gender-based undervaluation of work and ensure equal remuneration for work of equal or comparable value” – and render the ERO “redundant”.

Additionally, the Commission propose to remove all references to the family day care scheme sector from the SCHADS Award. It is proposed that all such work should be covered by the Children’s Services Award.

11. What transitional arrangements will be put in place to give effect to a uniform structure?

The Decision does not set out any proposed transitional arrangements. This will be the subject of submissions in the next stage of the proceedings.

12. Is there a proposed operative date or phasing-in arrangement?

Not at this stage. This topic will also be the subject of submissions in the next stage of the proceedings. 


Status 

13. What’s Next?

In summary:

  • The Commission has published a Discussion Paper to assist parties to prepare for the upcoming conferences.  That document is designed to assist parties preparing responses to the provisional views of the Commission. 
  • Two conferences have been fixed: 4 June 2025 (Sydney) and 17 June 2025 (Melbourne). 
  • Ahead of the conferences, the Commission has invited interested parties to file submissions by 28 May 2025.

Q&A – HEALTH PROFESSIONALS AWARD


Key Findings 

14. What “findings” have been made in relation to the Health Professionals Award?

The Commission has determined: 

  1. increases to minimum award wages for health professional employees, pathology collectors and dental assistants covered by the Health Professionals Award are necessary after finding that the existing pay rates do not properly reflect the value of the work performed (in part due to historical undervaluation based on gender); and
  2. the health professional classifications in the Health Professionals Award for which a Bachelor’s degree qualification is required should align to the “C1(a) Benchmark Rate”. That benchmark is currently $1,525.90 per week.


Key Provisional Views

15. How does the Commission propose to change the classification structure?

Two separate proposals have been advanced for both the health professionals and the support services streams:

  • Health Professionals Stream: 

The Commission proposes that the existing minimum rates and classification structure for health professional employees should be removed and replaced with a new simplified structure that distinguishes between the different professional occupations based on the relevant Australian Qualification Framework level. That new structure would also recognise “higher classifications” for health professionals in specialist, supervisory and managerial roles.

  • Support Services Stream:

The Commission proposes to reclassify both pathology collectors and dental assistants within the existing support services classification structure; specifically the “Technical and Clinical” stream. The proposal in both instances is accompanied by new criteria within the relevant classification level.


Status

16. What’s Next?

A conference was conducted on 20 May 2025 in Sydney. Ahead of that listing, all interested parties were invited to file position papers by 12 May 2025 and provided an opportunity to file any position papers in reply by 16 May 2025. 

An outcome of that conference may be future conferences and/or hearings.

OUR INVOLVEMENT

Australian Business Lawyers & Advisors (ABLA) continues to work closely with relevant members of Business NSW and Australian Business Industrial to enable the preparation of responses to the provisional views of the Commission.

ABLA will continue to attend conferences and hearings on behalf of Business NSW and Australian Business Industrial.