6305.0.55.001 - Employee Earnings and Hours, Australia, Preliminary, May 2004  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 08/12/2004   
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Adult employees

Employees who are 21 years of age or over, and employees under 21 who are paid at the full adult rate for their occupation.


Average (mean) earnings

The amount obtained by dividing the total earnings of a group (e.g. full-time employees) by the number of employees in that group.


Award only

Awards are legally enforceable determinations made by federal or state industrial tribunals that set the terms of employment (pay and/or conditions) usually in a particular industry or occupation. Awards may be the sole mechanism used to set the pay and/or conditions for an employee or group of employees, or alternatively may be used in conjunction with an individual or collective agreement.

Employees are classified to the Award only category if they are paid at the rate of pay specified in the award, and are not paid more than that rate of pay.


Collective agreement

An agreement between an employer (or group of employers) and a group of employees (or one or more unions or employee associations representing the employees). A collective agreement sets the terms of employment (pay and/or conditions) for a group of employees, and is usually registered with a Federal or state industrial tribunal or authority.

Employees are classified to the Collective agreement category if they had the main part of their pay set by a registered or unregistered collective agreement or enterprise award.


Employees

Persons who work for a private or public employer, and received pay for the reference period in the form of wages or salaries, a commission while also receiving a retainer, tips, piece rates or payment in kind. Persons who operate their own incorporated business with or without hiring employees are also included as employees.


Full-time employees

Employees who normally work the agreed or award hours for a full-time employee in their occupation. If agreed or award hours do not apply, employees are regarded as full-time if they usually work 35 hours or more per week.


Individual arrangement

An arrangement between an employer and an individual employee on the terms of employment (pay and/or conditions) for the employee. Common types of individual arrangements are individual contracts, letters of offer and common law contracts. An individual contract (or letter of offer) may specify all terms of employment, or alternatively may reference an award for some conditions and/or in the setting of pay (e.g. overaward payments). Individual contracts may also be registered with a Federal or state industrial tribunal or authority (e.g. as an Australian Workplace Agreement). Working proprietors of incorporated businesses are regarded as having their pay set by individual arrangements, and are identified separately within the individual arrangement category.

Employees are classified to the Individual arrangement category if they have the main part of their pay set by an individual contract, registered individual agreement (e.g. Australian Workplace Agreement), common law contract, or if they receive overaward payments by individual agreement.


Industry

Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 (cat. no. 1292.0).


Junior employees

Employees who are under 21 years of age and are not paid at the full adult rate for their occupation.


Managerial employees

Employees who are in charge of a significant number of employees and/or have strategic responsibilities in the conduct or operations of the organisation, and usually do not have an entitlement to paid overtime. Includes professionally qualified staff who primarily perform managerial tasks in conjunction with utilising their professional skills. Working proprietors and working directors of their own incorporated businesses are regarded as managerial employees.


Method of setting pay

How the main part of an employee's pay is set. Employees are classified to one of the following categories: Award only; Collective agreement; or Individual arrangement. Employees classified to the Collective agreement or Individual arrangement categories are further classified according to whether the agreement is registered with a Federal or State industrial tribunal or authority.


Non-managerial employees

Employees who are not managerial employees (as defined above) including non-managerial professionals and some employees with supervisory responsibilities.


Occupation

Classified according to the Australian Standard Classification of Occupations (ASCO), Second Edition (cat. no. 1220.0).


Ordinary time earnings

Payment for award, standard or agreed hours of work, including allowances, penalty payments, payments by measured result and regular bonuses and commissions. Excluded are non-cash components of salary packages, amounts salary sacrificed, overtime payments, retrospective pay, pay in advance, leave loadings, severance pay, and termination and redundancy payments.


Overtime earnings

Payment for hours worked in excess of award, standard or agreed hours of work.


Part-time employees

Employees who normally work less than the agreed or award hours for a full-time employee in their occupation. If agreed or award hours do not apply, employees are regarded as part-time if they usually work less than 35 hours per week.


Reference period

The survey refers to the last pay period ending on or before 21 May 2004. All estimates of earnings in this publication are weekly, therefore, for employees paid other than weekly, estimates of earnings have been converted to a weekly basis.


Sector

Public sector comprises local government authorities and all government departments and agencies created by, or reporting to, the Commonwealth, or state/territory Parliaments. The private sector comprises all organisations not classified as public sector.


Weekly Total Earnings

Weekly total earnings of employees is equal to weekly ordinary time earnings plus weekly overtime earnings.


Working Proprietor of an incorporated business

A working proprietor of an incorporated business is considered to be an employee of their own business. As working proprietors of incorporated businesses differ from other employees in having the power to determine their own pay and working hours (subject to the earnings of the business and other factors), they are separately identified within the individual arrangement category.