FWO clarifies manufacturing and timber award terms

The Fair Work Ombudsman has made a number of clarifications to redundancy and other award terms in the Manufacturing Award and Timber Award.

5 May 2022 

The clarification, released on 3 May, forms part of the Fair Work Commission’s (FWC) Modern Award Review, where many awards have been rewritten in plain English. It applies from the first full-pay period that starts on or after 2 May 2022. 

Manufacturing Award

The redundancy clause in the Manufacturing Award has been rewritten in plain English to help small business employers determine if their employees are entitled to the ‘furnishing employees of small business employers’ redundancy pay. These wording clarifications include:

  • stating that it applies to the furnishing employees of small businesses
  • explaining the type of work an employee performs as a furnishing employee.

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Timber Award

The redundancy clause in the Timber Award is also now written in plain English. Updates include:

  • removing references that exclude ‘weekly piecework employees’ in the redundancy pay entitlements clause for small business.
  • moving the ‘payment by results – wood and timber furniture stream’ provision to the minimum rates clause as ‘payment by results’ is a way to pay an employee rather than an employment category.

Other changes to both awards

The FWC also updated the wording of the following award clauses in both awards:

  • award flexibility (now called individual flexibility arrangements)
  • consultation (now called consultation about major workplace change)
  • dispute resolution
  • termination of employment.

The FWO noted that these changes don’t affect award entitlements or obligations.

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