|
Workplace Instrument |
WRP-01 |
What is a workplace instrument? |
|
This is an umbrella term used under Australia’s Fair Work Act to describe different types of legal documents used to set up worker pay & conditions, such as awards and enterprise agreements. A workplace instrument sets out terms and conditions of employment, like:
- Pay Rates
- Penalties and Loadings
- Working Hours
- Leave Entitlements.
Workplace instruments are legally binding. They provide assurance that funding is being passed on to workers through increased wages. Workplace instruments can be negotiated through a bargaining process.
Most employees are covered under the Federal system of employment, but some are covered under their state government system of employment. These are sometimes called industry awards.
Enterprise Agreements are almost all in the public domain, so you can look them up to see what they look like
|
WRP-02 |
What is an eligible workplace instrument for the purposes of complying with the grant guidelines? |
|
To be eligible for the worker retention payment, a workplace instrument must
- include an obligation to pay workers at or above the minimum rates in the grant guidelines and in accordance with section 4.3 of the grant guidelines
- apply for the full 2 years of the payment
There will be no exemptions to this condition.
|
WRP-03 |
For a service that just uses the award, is the award their workplace instrument? |
|
Whilst an award is a workplace instrument in legal terms, the award does not currently comply with the grant guidelines as it does not set out the minimum rates of pay as specified in schedule A of the grant agreement. |
WRP-04 |
If we use an Enterprise Agreement (EA), does it need to be approved by the FWC? |
|
To have a compliant EA, there is a formal process to both establish, negotiate and accept an EA in every workplace. The process is different between a single enterprise EA or the impending Multi-Employer Agreement. Yes, and it needs to be voted on by employees. If the majority of employees approve of it, it then goes to the Fair Work Commission for approval before being put into operation.
On a practical level, service providers can submit their application with a draft workplace instrument whilst finalising it & then add it through the CCS Helpdesk when done. The grant application won’t be approved until a registered workplace instrument has been provided.
|
WRP-05 |
Are there any support mechanisms for signing up to Enterprise Agreements (EAs)? |
|
Yes – the Australian Childcare Alliance (ACA) can help with the EA coming out of the multi-employer supported bargaining process and will be supporting service to opt in to the agreement if they choose.
You can also find relevant information about the process of bargaining, how to hold a vote on an agreement & the process of getting it approved by the Fair Work Commission (FWC) from the FWC website, along with state/territory government workplace commissions
|
WRP-06 |
If a service is currently under an Enterprise Agreement (EA), would they be excluded from applying until their EA is terminated and employees are then contracted under modern awards? |
|
If a service has a current single EA it will need to seek a variation to that agreement that ensures compliance with the grant guidelines. |
WRP-07 |
If the workplace instrument is dated December 2, but the grant is not approved until after that date, do you need to pay the higher wages? |
|
You will need to pay the higher rates of pay from the date the workplace instrument specifies. If the grant is not approved at this date, it is likely to be back dated until the date the instrument specifies as long as you have applied for the grant before 30 June 2025 |
WRP-08 |
If we employ staff under an employment contract, does this qualify as an approved employment instrument for the purpose of receiving the worker retention payment? |
|
An employment contract or letter of offer will not be compliant workplace instrument with the grant guidelines. |
WRP-09 |
What is an Individual Flexible Agreement (IFA)? |
|
This is a document that applies one-on-one between employee & employer. There is no set format to create an IFA – it just needs the relevant information within it.
An IFA cannot çover more than one employee & has to be signed by both employer and employee.
An employer cannot make entering into an IFA a condition for employing someone.
Using one or more IFAs as part of your workplace instrument to be eligible for the grant could be burdensome if you have a large staff and a high turnover. (The other instruments are more administratively practical for large staff numbers.)
|
WRP-10 |
Will the ACA be preparing an IFA for its members to use? If so, when can we expect to see it? |
|
Yes, the ACA is preparing an IFA template for its members to use. A full explanatory document will supplement the template IFA. |
|
Eligibility - Employees and Providers |
WRP-11 |
Who is deemed to be an eligible worker? |
|
The grant is intended to cover employees of CCS Approved centre-based day care (CBDC) and outside school hour care (OSHC) services who work directly at a service. This includes anybody at a service employed under either the Educational Services (Teachers) award or the Children’s Services award and can be classified in schedule A of the grant guidelines.
At a practical level this includes cooks who are employed under the children’s services award, centre directors and unqualified staff and trainees employed under the CSA.
Services who are council run and not for profit services who are CCS approved and either CBDC or OSHC are also eligible.
|
WRP-12 |
Who is not eligible? |
|
Administration staff employed under the clerical award, cooks employed under awards other than the CSA and trainees employed under the national trainee wage are not covered in the grant guidelines |
WRP-13 |
Does the Worker Retention Payment grant funding include casual staff? |
|
Yes, casual staff employed under the CSA or ESTA are deemed eligible employees |
WRP-14 |
Do contractors qualify if employed by a related party and employed under the Children’s Services Award / Teachers Award |
|
We have requested information from the Department regarding third party employment and will update our members as soon as possible. |
|
Application |
WRP-15 |
How does a service provider opt in to the Worker Retention Grant? |
|
- Service providers can opt in by applying for the grant via the GrantConnect website
- You can download the ECEC Worker Retention Payment application preview form here
- You can download the 27-page Grant Opportunity Guidelines document here
- If you eventually decide to apply, you will need to log in to the GrantConnect website here.
|
WRP-16 |
How are the grants allocated? |
|
The grants will be allocated once all the application has been assessed as compliant with one of the most significant criteria being that a compliant workplace instrument has been put into effect. This will be allocated in order of application assuming the application is compliant. |
WRP-17 |
When will the information about reporting requirements be made available? |
|
This will be provided in the grant agreement, and there is also a wealth of information already in the Grant Opportunity Guidelines. The financial information question in the application asks for:
- total expenditure of eligible ECEC workers’ wages and on-costs for the Financial Year 2023-24; and
- total costs paid for eligible ECEC workers for the Financial Year 2023-24
|
WRP-18 |
When filling out historical leave amounts in the application, can we include other leave types that we provide for staff? Eg. Our centre gives 2 weeks special leave per year to employees which is accrued on a continuous basis and paid out at termination if unused. |
|
It is not clear whether service-specific leave entitlements are included but we would suggest you include all leave in your application for the Department to assess.
|
WRP-19 |
I have 4 services under 3 providers, will I need to submit an application for each provider / legal entity? |
|
It is our understanding that each legal entity will need to make an application for the number of services you choose to apply for connected with each entity. Applications are linked to CCS approvals. |
WRP-20 |
What happens after two years? |
|
DET has explained that this is an interim process while the Federal Government waits on the outcome of the gender evaluation process, plus assess the recommendations of the Productivity Commission’s Final Report from their inquiry into the early learning sector.
At this stage, it is not possible to predict what will be put in place beyond the two years of this funding program, particularly given there is a federal election before the end of the funding period
|
|
Funding Formula |
WRP-21 |
So, how is the payment amount calculated? |
|
The payment will be based on the number of charged session hours at your service. For example if you have a 100 children attending your service daily with an average session length of 10 hours you will receive a payment based on 1000 hours per day or 5000 hours per week or 20,000 hours per four weeks. This will lead to a formula looking something like this:
20,000 hours x $x =
We do not know the $x and how this is determined.
|
WRP-22 |
When will the grant funding methodology be released? |
|
ACA has been strongly advocating for the Department of Education to release this information as soon as possible, to enable all service providers to assess whether or not the Worker Retention Payment will benefit their service.
At this stage, it is unclear if or when the government will release this information.
|
WRP-23 |
Will consideration be given to number of Diploma-qualified staff or degree - qualified Early Childhood Teachers? |
|
Whilst we are unsure of how the formula has been determined, the Department is confident that its calculation will adequately cover a range of staffing arrangements for the majority of services.
It is our understanding that the Federal Government has modelled a range of different service offerings in developing its formula and determined an expected labour cost. We have been advised that this is not set at minimum ratios and is expected to be generous enough for a broad range of circumstances
Whilst we hope that this is indeed the case, we are unable to provide with certainty the methodology or amounts involved.
We have been informed that if the rate calculated doesn’t meet the figure required for your service to remain financially viable, that you are encouraged to apply for additional funding based on your staffing costs. At this stage we do not know what kind of evidence or information would be required to justify such an application.
|
WRP-24 |
Is there an actual formula and/or a practical example of how this grant funding will be calculated? |
|
The Department is expected to release some case studies/cameos in the coming days which may shed some light on the specifics for the sector. The payment will be based on the number of charged sessions hours at your service |
WRP-25 |
What oncosts are included in the Worker Retention Payment? |
|
The grant guidelines specify the following oncosts are allowed to be paid from the grant money:
- Superannuation
- Workcover
- Payroll Tax
- Leave Loading
- Accrued Leave Liabilities (a single payment
|
WRP-26 |
If occupancy drops in January/February, will the payment decrease because usual staff numbers may not be required in ratio? What if you close your service over the Christmas period? Would you still receive the grant money for those 2 weeks of closure? |
|
It is likely that there will be variations in payment as a result of your occupancy and or closure periods. This will mean that in some months you may receive an excess and in other months you will receive a little less. We will know more on the impact of this once the funding details are known. |
WRP-27 |
What would happen if your current occupancy is only 45%, then over next 6 months, your occupancy goes up to 90%? This change obviously has a huge impact on wages - would the retention payment be based on the increased wages? |
|
If your occupancy increases drastically resulting in more charged session hours you will receive a greater amount of funding as it is calculated on weekly usage. |
WRP-28 |
Does that mean children who are not eligible for CCS (e.g. non-residents) will not be captured in this calculation? |
|
It is our understanding that as long as you submit sessions for children who are not approved for CCS via the CCS system that they will be factored into the payment formula. |
|
Payments |
WRP-29 |
What does a provider need to do to be eligible for the first payment in December 2024? |
|
The grant application needs to be submitted by 11 November 2024. This does not guarantee a payment in December – this will be subject to the overall volume of applications received & also whether eligible and all criteria met. The Government says: "We will backdate payments to 2 December 2024 for providers that:
- apply by 30 June 2025
- meet the elibility criteria from 2 December 2024
|
WRP-30 |
Are payments being made in arrears or in advance? |
|
Payments will be made one month in arrears based on the previous two months session hours. For example your payment for December 2024 will be paid in January 2025 using data from November and December 2024. The Department has advised that some services may receive a payment in December to assist with cashflow but that this will be reconciled against future payments.
You should be aware that you are able to claim historical leave liability increases once only. ie the government will pay 70% of the hourly increase for leave liabilities in a single lump sum payment. Thus it would make sense to wait until the pay run prior to the 2nd December in order to ensure that all eligible leave liabilities are included
|
|
Above Award Payments |
WRP-31 |
What if I already pay above the award rate? |
|
Where an employee receives above award payments the employee will need to receive an additional payment that correlates with their award classification and the dollar amount specified in schedule A. For example:
- Employee is a level 3.1
- The award rate is $27.17
- Their current pay rate including above award payment is $30.00
- They will need to receive a pay rise of $2.72
- Their new pay rate will be $32.72
|
WRP-32 |
Can I absorb my existing above award rates? |
|
If you are receiving the grant you cannot absorb above award payments |
WRP-33 |
If we pay our staff currently 10% above the award, what will the government pay for those employees under the grant? |
|
Of you are currently paying 10% above the award and choose to apply for the grant you will need to pay them an additional dollar amount above their award rate as specified in schedule A in the guidelines. See example above |
WRP-34 |
If a staff member is on 6% above award and then changes their role/ pay rate does the Company need to maintain the 16% above award for the new rate, or will a change to 10% above remain compliant? |
|
In the first instance, the increase wouldn’t have been an additional 10% Using the example above
- Employee is a level 3.1
- The award rate is $27.17
- Their current pay rate including above award payment is 6% more – ie $28.80
- They will need to receive a pay rise of $2.72
- Their new pay rate will be $31.52
- If they move to a level 3.2, the new pay rate after 2nd December will be $31.89
In all circumstances, to comply with the grant guidelines, all educators will need to receive the dollar value as specified in Schedule A of the Grant Opportunity Guidelines.
|
|
Fee Constraint |
WRP-35 |
What does the fee growth limitation apply to? |
|
The 4.4% fee constraint in year one of the grant applies to all session types at your service. A service cannot increase their fees by more than 4.4% between August 9 2024 and August 8, 2025. |
WRP-36 |
When we find out about the fee increase allowed for the next year? |
|
It is expected that the ABS ECEC price index specifying the fee constraint in year two will be available by the end of 2024. |
WRP-37 |
Fee increase. What determines non-serviceability and therefore be able to increase more than the capped amount? |
|
We are unsure what criteria will be used to assess whether a service can get dispensation to increase their fees by more than the specified amount |
WRP-38 |
Is there a limitation on when the fees can be increased within the 12 month identified in the guidelines? |
|
The fee constraint advice only identifies that fees can increase no more than 4.4% in the 12 month period. The timing of which is a business decision |
WRP-39 |
What if you notified parents of the fee increase in July, but because of notice it did not take effect until later in August? |
|
For those services who may have given notice of a fee increase prior to August 9, 2024 but not implemented until after, this increase will need to be at or under 4.4% to comply with the grant guidelines however you may be able to seek exemption. The exemption guidelines have not yet been released |
WRP-40 |
If we don’t register, but pay our staff the increase, are we still able to increase our fees above 4.4% to cover the increased wage costs? |
|
A service could choose to increase wages, not claim the grant and increase fees but there are a number of important factors to consider before coming to this conclusion and to ensure the suitability and viability of such a decision in your individual circumstances |
WRP-41 |
A 4.4% increase does not work out as a round number for fees. Can we round up to the nearest dollar? |
|
The fee increase can not be rounded up if it exceeds 4.4% |
|
Transfer of Provider |
WRP-42 |
What provisions are in place for centres transferring providers during the term of this funding, particularly Dec and Jan transfers? |
|
When transferring a service that is receiving the grant prior to the transfer there are a number of things the transferee will need to consider.
1) Workplace Instrument implications
2) Worker Retention Payment Implications
If the compliant workplace instrument is a EA then that will continue to be compliant and in place for the new provider. If the workplace instrument is an IFA, the transferee may need to issue a new IFA once the employment has commenced with the new entity.
In either case the transferee will need to apply for the grant once they have settled and taken over the service
|