Build or Update an Award or Agreement

The Award engine is the brain of the payroll component of foundU. It is one of the key components responsible for determining how your employees are paid. The image below shows a high-level workflow of how the data moves from the Award engine through to payroll.

To build or edit an Award or Agreement:

  • During the implementation process - Your Awards or Agreements are created for you. This is based on your interpretation of the relevant awards.
  • For accounts that are live (completed implementation) - We are still happy to assist you in setting up new Awards or Agreements. We can also assist you in amending your existing ones.

If you would like build or update your own Awards, or if you're looking to have a better understanding of how this part of the platform functions, this article will be of assistance.

Please note, if you're looking to add a new position to an existing Award, we have a separate guide for this process.

Setting Up An Award

Setting up an Award is a 5-step process: 

  1. Rate Labels & Settings
  2. Classifications
  3. Positions & Pay Rules
  4. Pay Item & Allowances
  5. Test the Award interpretation

Using A New Award

After your Award and positions have been set up, there are up to 3 additional steps:

  1. Add positions to operation rates books - Guide
  2. Add positions to rates book templates (optional) - Guide
  3. Add positions to position groups (optional) - Guide

 

Please note: It is very important to test any changes you make to your awards to make sure your payroll is accurate. It is your responsibility to accurately interpret and understand the Awards and Agreements your employees are employed under. foundU does not provide any advice in this regard.

 

  

Create an Award or Agreement

A new Award or Agreement can be created within the system at any time. If you have the need to create a new Award, remember that assistance is available. If you would like help or to talk it through, please contact us

Create a new Award

  1. From the main menu, navigate to Awards & Agreements
  2. Select New Award

  3. Fill in the details
    • Title - This is the title of your Award or Agreement. It is recommended that you use the full title here. For example, Hospitality Industry (General) Award 2010 [MA000009]
      This title is used on the Awards page and in reports throughout the platform.
    • Short Title - This title can optionally be a shorter version of the Award. For example, HIGA. It can also be titled exactly the same as the above field, if you prefer. 
      This title is displayed on the position located on the employee profile and in some position search fields. 
    • No Pay Award - Checking this option will create a 'no pay Award'. A no pay Award has no rate labels, classifications, or pay rules. Some common uses for this Award type would be for Contractors or volunteers. 
  4. Click Save

Copy an existing Award

There may be instances where you would want to use an existing Award in your account as a template for a new Award or Agreement. In this case, instead of creating a new Award or Agreement from scratch, you can copy an existing one. 

  1. From the main menu, navigate to Awards & Agreements
  2. To the right of the Award or Agreement you'd like to copy, select the copy icon

  3. Edit the Title and Short Title then Save
    • All rate labels, classifications, and settings are copied.
    • Only the first position of the Award or Agreement is copied. 

Now that you've created an award, the next step is to set up the Rate Labels. 

 

Rate Labels & Settings

Once your Award is created, the next step is to add your rate labels and adjust the settings to suit.

Rate Labels

Before you begin

  • Consider the naming convention. Think about how you're going to name the rate labels and remain consistent for all of them. The rate labels will be visible on employee payslips and in various reports, so consistency and accuracy are important. 
    Some examples of popular naming conventions are as follows:
    • Normal (Ordinary), Time and a Half (Overtime)
    • Normal (OTE), Time and a Half (O/T)
  • Using the same rate for multiple time frames. You're not able to create multiples of the same rate label (e.g. 2 separate entries of a 1.2 rate) so think about naming the rates something descriptive that can be used for multiple time frames. For example, Saturday / Out of Hours (Ordinary).

      Tip: You can override the label on the position at a later stage so that it makes more sense on the employee payslip.

Add a Rate Label

  1. From the Awards & Agreements menu, click into the Award then select Rate Labels & Settings

  2. To add a new rate label, click Add Rate Label and fill in the required details.

    • Rate – this is the multiplier that is used in conjunction with the base rate for a position. 
      For example, a rate of 1 is your normal ordinary time. A rate of 1.5 would be used for time & a half.
    • Ordinary Hours Label – The label that will display for normal time for this rate. The label appears on payslips and in some reports.
    • Overtime Label – The label that will display for overtime on this rate. The label appears on payslips and in some reports.
    • Exclude Casual Loading – selecting these checkboxes will display the (No Casual Loading) fields for either Ordinary Hours Label or Overtime Label. These can be used for rates where casual loading does not apply to casual employees.
      An example of this would be in the Hospitality Industry (General) Award. The casual positions have no casual loading on overtime, except for public holidays. 
      Note that a rate label can also have labels for casual loading & no casual loading. To do this, you would simply have a label in both the fields with the checkbox selected, as seen in the images below.

  3. Click Save
  4. Repeat step 2 & 3 until all of the rate labels required in your Award are present.

Edit or delete a rate label

  • To edit an existing rate label click the pencil icon to the right of it. You can amend the names of the labels or add additional labels. If you have need to edit the rate field, the correct process would be to add a new rate and update the positions accordingly. 
  • To delete a rate label click the bin icon to the right of it. Only rate labels that are not used on a position may be deleted. 

Settings

The below settings are some of the most commonly used.

  • Casual Loading (%) – The loading applied to a base rate when paid to a casual employee
  • Leave Loading (%) – The default loading on paid leave types. For more information on leave loading click here.
  • Penalty Rate Loading Rule – This setting determines how penalty rates are calculated for casual employees
  • At what point in the shift should an unpaid break be applied? – This setting determines where in a shift, an unpaid break will be taken from. Clocked break times or setting the break start time in Approve Shifts will override this default value. More information on this setting can be found here
  • Should entitlement hours count towards hours worked for calculating overtime? – This setting determines whether paid leave hours are included when calculating overtime. More information on this setting can be found here
  • Should maximum ordinary hours worked be averaged over a fortnight? – This setting applies to fortnightly paying platforms. It will determine if ordinary time is averaged over the fortnight which can then impact the overtime an employee is paid.

With Rate Labels and the award settings configured, it's time to start adding Classifications.

 

Classifications

Once the rate labels are set up, you can now add your classifications to the Award.

Before you begin

  • Consider the naming convention. Think about how you want to title the classifications and remain consistent across all of them. The classification names are used primarily for setting up the positions within the Award but do also appear in some reports. Remaining consistent with classification names will assist you in the setup of the Award and will help to keep your platform & reporting tidy. An example naming convention can be found below:
    • Level 1
    • Level 2
    • 18 years - Level 1
    • 18 years - Level 2
    • Apprentice - Year 1
    • Apprentice - Year 2
  • Regardless of the naming convention you decide upon, it is recommended to keep the classification names close to the Award classification names. Doing so will make managing the Awards and rate rises easier.
  • Do you use every level in the award? Think about your business and which positions or classifications you are going to need. It is not recommended that every single classification in an Award is entered into the system. Some things to consider:
    • If your business does not hire junior positions or apprentices, there's no need to add those classifications.
    • If your business only pays up to Level 4, for example, there's no need to add higher level classifications.
    • If you expect to use some classifications in the future, it's worth adding them now.
      For example, if you hire a 17 year in a junior position, you should create classifications for 18 year olds too. Likewise with apprentices, if you have a 1st year apprentice, you should create all of the apprentice classifications.
  • Enter the classifications in order. Once you have decided up on your naming convention and the classifications that you want to use, add them into the system in a logical grouping. At this time, classifications cannot be moved or sorted in a different way. With this in mind, it is best to create the classifications in order. For example:
    • Level 1 - 4
    • 17 years - level 1 - 4
    • 18 years - level 1 - 4
    • etc

Add or edit classifications

  1. From the Awards & Agreements menu, click into the Award then select Classifications.

    • This will display any existing classifications which can be edited by clicking the Edit icon to the right of the classification.

  2. Click the Add New tab and fill in the fields.
    • Name - This field will display in the Awards menu when setting up your positions. 
    • Short Name - This field will display in some reports throughout the system. This does not need to be different to the name field above if you'd prefer to keep it standard.
    • Base Rate - The base rate for this classification. 
    • Casual Rate - The casual rate will be calculated automatically using the base rate entered above and the loading amount you specified in Settings.

        Note: if the casual rate is low by 1 cent, you can increase it by using a 3rd decimal place in the base rate. Only 2 decimal places are used for rates within the system so the base rate will not be affected. 
  3. Click Save when ready
  4. Repeat steps 2 & 3 until all required classifications have been entered.

Once the above is complete, the next step is to add & build the rules for your positions.

Positions & Pay Rules

With rate labels & classifications set up, positions can now be built.

This guide will cover the most common settings for position creation. 

Before you begin

  • Consider your naming of positions.  Descriptiveness and consistency in your naming of positions will help you to manage the positions and the platform better. Some recommendations for position naming would be:
    • Level 1 - Food & Beverage Attendant
    • 17 years - Level 1 - Food & Beverage Attendant

    • L1 - F&B
    • 17 Yrs - L1 - F&B

    • F&B (Level 1)
    • F&B - 17 Years (Level 1)
  • Have everything you need ready. Make sure to have the Award or Agreement you're setting up or editing on hand. A list of all Awards can be found here.

Create or edit a position

Create a position

  1. From the Awards & Agreements menu, click into the Award then select Positions & Pay Rules.

  2. If you're setting up an Award from nothing, click Add Position then fill in the details on the menu that appears then Save.

    • New Position - The title of the position. Seen all throughout the platform (employee profile, payslips, rosters, reports)
    • Classification - The rate at which the position will be paid
    • Max Ordinary Hours a Day - The maximum number of hours an employee can work in a day without attracting overtime.
    • Max Ordinary Hours a Week - The maximum number of hours an employee can work in a week without attracting overtime.
    • Min Hours for Break - The minimum number of hours a shift can be for a break to be clocked. Breaks can still be rostered and approved regardless of this value.
  3. If you're adding a new position to an existing Award, there should be no need to set this up from scratch.
    1. Find a position with the correct rules (or similar if you're intending to make edits) then click Copy to the right of that position

    2. Fill in the details on the menu that appears then Save.

Configure a position

This section will focus on creating a position from scratch. The information within can still be used to edit an existing position. 

  1. After creating the new position in the steps above, you should already be in the position configuration menu. If not, click edit to the right of the position.
  2. Before starting to set up the position, it's important to note how the position configuration menu is laid out. The position rules are split between the following days:
    • Weekday
    • Saturday
    • Sunday
    • Holiday
    • Custom specific date - You can optionally choose to set up custom rules for a specific date.
  3. Starting with weekday, click Add rule for Weekday.

    1. Per your Award or Agreement, fill in the time frame details. The default of ‘Hours worked between’ can be changed to one of several options, the naming of which will directly match what is present in your Award.
    2. Optionally choose a Shift Label. This label will be used in place of the rate label for Ordinary Rates on the employee payslip and in reporting.
    3. Click Add ordinary rate and select the desired rate from the drop-down menu.
      • If required, you can add a shift allowance to the time frame by expanding the Add Shift Allowance menu below the rate.
      • You can optionally add another ordinary rate to the timeframe by clicking the same button as before. This will allow you to specify another rate up to a certain number of hours.
    4. Click Add overtime rate and select the desired rate from the drop-down menu.
      • Many Awards have multiple overtime rates, dependent on the number of hours worked. Click Add Overtime Rate again to add a second. The Hospitality Industry Award specifies that employees are entitled to time & half for overtime up to 2 hours then are entitled to double time after that. The below image demonstrates how this can be configured.

        Note: Rate Labels without casual loading are marked as 'NCL' as seen in the image above.
  4. Continue adding timeframes and repeat the above steps until all of the weekday rules are entered.
  5. Below the time frames you have added, you will find hours outside of any time frame. Most commonly, the overtime rates will need to be set up. The values input here are used for when an employee exceeds the maximum ordinary hours for the week.
  6. Click into Saturday then build out the rules for this day. Repeat for the remaining days.

    • Tip: If your Award does not specify timeframes for a day, the default settings of Hours Worked Between 12:00 am and 12:00 am will cover the entire day.
  7. Navigate back to Weekday and review the settings on the left.

    • Minimum hours – the minimum number of hours a shift will be paid for.
    • Meal allowance – you can add multiple meal allowances and specify when they are applied to shifts.
    • Unpaid breaks – you can set this up so that if an employee does not take a break within the time specified, they will be paid the rate you specify here. Note that in order for this to work correctly, your employees should be clocking their break times.
    • The settings are specific to each day so update them for the Saturday, Sunday, and Holiday timeframes, if required.
  8. Scroll to the top of the position and click Save.

Test your position

Before you start using the position with employees or applying the updates to more positions, test the interpretation. For instructions on how to do this, please refer to the Award test accordion below.

Create or apply updates to multiple positions

Once you've created the position, you most likely won't need to create another from scratch. 

If you want to create new positions with the same rules.

  1. Click Copy to the right of that position

  2. Fill in the details on the menu that appears then Save.

If you want to apply changes made to multiple positions.

  1. Click Apply to the right of the corrected position

  2. Click into the field and individually select the positions you'd like to apply the changes to. You can type in this field to help narrow down the selection of positions available.

With positions now set up, you should set up any allowances that your award specifies.

Pay Items & Allowances

Most awards have various allowances that employees are entitled to under certain circumstances. These should be created within the Award now so that they can be used for payroll. 

To add Pay Items & Allowances, from the Awards & Agreements menu:

  1. Click on the Award or Agreement to expand it then select Pay Items & Allowances

  2. Click Add then fill in the details for the allowance or pay item you're looking to set up.

  3. Save when done.

Please see our detailed guide for a deep dive into all the settings and options for this menu.

Award Test

After creating or editing your Award, you will want to test the interpretation to ensure that it is behaving the way you expect. To do so, you should use the Award Test feature.

From the Awards & Agreements page you can test a position.

  1. To do this, click test to the right of the position you'd like a breakdown of. 
  2. You'll then be taken to the Award Test - Create A Scenario page. The position and Award will be prefilled with the position that you chose to test.
  3. Add shift details into the days then click Begin analysis to test the Award interpretation.

Pease refer to the Award Test guide for a more detailed explanation of it's use. 

What to do next

If you've created a new Award or new positions within an Award, to be able to assign the positions to employees and roster them, there are some additional steps.

  1. Add the positions to the relevant position groups. This step is optional as it depends on whether you use position groups in your platform. 
  2. Add the positions to the rates book templates. This step is optional as it depends on whether you use rates book templates in your platform. 
  3. Add the positions to the operation rates books

This guide details the steps to perform the above tasks.

Useful reports

Position Change Report - If you would like to see a report of all employees and their positions under an Award, check out our Position Changes Report.

People Export - You can export much of your employees' data including their positions, rates of pay, associated Awards, etc. This can be exported from the bulk people export feature. 

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