Classification

Classification in an award or registered agreement serves as a detailed job description, outlining specific duties and responsibilities. It also includes the necessary qualifications and experience levels required for the job. Classification levels are important as they determine the minimum pay rate for a role. For instance, an employee might need a certain level of education, like a diploma, or specific experience to move to a higher classification level.

Getting classifications right

Classifying an employee too low is one of the most common causes of underpayment. Classify each employee by the duties they actually perform and the skills and qualifications they use, not by their job title, and review the classification when their role changes. For example, a retail employee who regularly takes charge of the store, handles opening and closing and supervises other staff may need to be paid at a higher classification level than a sales assistant.

Our guide to modern awards explains classifications, and an HR compliance audit can check them across your team.