New Educational Leader Allowance in the Children’s Services Award

Following the 4 yearly review of the modern award...

The Commission expressed the provisional view that the Educational Leader Allowance from the Teachers Award be inserted into the CS Award. 

 
On 18 July 2022, the United Workers Union decided to drop its claim for the Responsible Persons Allowance. This left the translation of the Educational Leaders Allowance for determination.
 
ACA (represented by Australian Business Lawyers & Advisors) led the charge by proposing that the Educational Leaders Allowance in the CS Award:

• should be paid the same amount as set out in the Teachers Award (as the role is the same); and
• that the allowance be expressed in the CS Award by reference to the Teachers allowance.

The reasoning behind this approach was to ensure that the Educational Leader Allowance remains the same monetary amount in both awards. The United Workers Union and Independent Education Union agreed with the approach put forward by ACA.

Ultimately, the Commission agreed with the ACA approach. The wording of the new Educational Leader Allowance in the CS Award is as follows: 

15.8 Educational leader allowance
(a) An educational leader’s allowance of $4022.05 per annum will be paid to an employee who is required to discharge the responsibilities of the educational leader under Regulation 118 of the Education and Care Services National Regulations 2011.
 
(b) Where an employee is required to act as educational leader for less than 5 days per week, the annual allowance prescribed by clause 15.8(a) will be payable on a pro rata basis calculated by reference to the number of days per week the employee is required to act as educational leader.
 
NOTE: The allowance prescribed in clause 15.8(a) is the same amount as the educational leader allowance prescribed by clause 19.4 of the Educational Services (Teachers) Award 2020 and will be adjusted each year to reflect the amount set in the Educational Services (Teachers) Award 2020.

Operative Date
As part of its Decision, the Commission expressed that the Educational Leader Allowance in the CS Award be implemented ‘shortly thereafter’.
 
ACA advocated for an operative date which would allow providers sufficient time to prepare for the costs associated with the new Educational Leaders Allowance, whilst the United Workers Union pushed for the Educational Leaders Allowance to be implemented right away.
 
ACA was successful in its approach. The Commission determined that the new Educational Leader Allowance being effective from 1 November 2022.
 
What does this mean for my employees?
For providers, this now means that from 1 November 2022, they will need to pay their educators under the CS award, who are required to discharge the responsibilities of the educational leader under Regulation 118 of the Education and Care Services National Regulations 2011.
 
The allowance is $4022.05 per annum and can be pro-rated for the number of days the individual is required to discharge the duties (i.e. for part-time employees).
 
This allowance is payable in addition to giving Educational Leaders two hours of non-contact time per week as set out in clause 21.5 of the CS Award.

Financial Impact on employers

Effectively, the Fair Work Commission views the introduction of this new operational cost to be borne by employers without any anticipation of third party financial assistance (eg Government grants and/or subsidies). 

Nevertheless, long day care services in NSW may recall new funding, including the expanded Start Strong and well as Affordable Preschool funding anticipated to begin in January 2023. Moreover, there is the new Federal Government's increased CCS funding beginning 1 July 2023.  

RELEASED: 9 SEPTEMBER 2022

ORIGINAL SOURCE: ACA NATIONAL MEMBER ALERT