Aged Care Work Value Case: Operative Date Confirmed

After three years of proceedings, the Aged Care Industry Work Value Case is another step closer to completion.

On 27 June 2024, the Fair Work Commission (the Commission) published a decision confirming the operative date for the work value increases earlier announced on 15 March 2024.

What you need to know

The Work Value Increases

The work value increases apply to the following award classifications:

• direct care – aged care employees under the Aged Care Award 2010 (including nursing assistants working in aged care that were previously covered under the Nurses Award 2020) (collectively, direct care employees);
• general – aged care employees (including general, administrative and food services) under the Aged Care Award) (collectively, general employees); and
• home care employees (aged care) under the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award).

The Commission will be finalising the work value increases for nursing employees in aged care as part of the broader Nurses and Midwives Work Value Case that commenced earlier this year.

Operative date: 1 January 2025

The operative date for the majority of the work value increases is 1 January 2025.

Recognising the material role played by Commonwealth funding, the Commission decided to phase-in the work value increases for direct care employees and home care employees across two tranches. The second tranche will commence on 1 October 2025.

From 1 January 2025:

• the entirety of the work value increase awarded to general employees is payable;
• for direct care employees and home care employees:
  • if the total work value increase is less than 3%, the total work value increase is payable;
  • if the total work value increase is more than 3%, half of the total work value increase or 3% (whichever is the greater) is payable.

From 1 October 2025, the balance of any remaining work value increase for direct care employees and home care employee is payable.

The Commission’s complete reasoning about operative date and phasing-in is accessible here.

What’s next?

The Commission will publish final determinations for the Aged Care Award, SCHADS Award and Nurses Award. Those determinations will also feature some minor adjustments to the classification definitions included in the draft determinations published on 15 March 2024.

Questions

If you are a member of Business NSW the Workplace Advice Line can answer your questions on award provisions, wage rates and interpretation - just call 13 29 59.

As always, businesses can contact ABLA’s Workplace and Employment team on 1300 565 846 if they require any assistance in understanding or applying the Commission’s decision.