What is the ARA’s proposal?
The Australian Retailers Association (ARA) submitted a proposal to the Fair Work Commission in 2024 to update the General Retail Industry Award (GRIA). This includes 13 proposed changes aimed at increasing flexibility, reducing complexity, and improving work-life balance for retail staff. Among the key changes are:
- Optional four-day working weeks
- Rolled-up salary options for managers
- Flexible break and rest period rules
- Removal of the 19-starts-per-month cap for part-timers
These changes are designed to modernise Australia’s retail workforce framework.
Who does it affect?
The proposals impact both large and small retailers across Australia who are covered under the Retail Award. It’s particularly relevant for:
- Store managers and assistant managers
- Full-time and part-time sales staff
- HR departments managing rostering and payroll
When might these changes take effect?
If the Fair Work Commission approves the proposal, it could be implemented in stages starting as early as 2025. Retailers are encouraged to prepare now by reviewing their rosters and employment contracts.
Where will the impact be felt?
Across Australia—from shopping centres and supermarkets to online fulfilment hubs and family-run stores. The General Retail Industry Award covers over 1.2 million workers, so the ripple effect will be nationwide.
Why are these changes happening?
The ARA says the current award system is overly complex, especially for smaller retailers who struggle to interpret and apply the rules. The proposal is designed to:
- Offer more autonomy to employees
- Reduce administrative workload
- Prevent compliance risks and accidental underpayment
Retail giants like Coles and Woolworths have supported the changes, citing flexibility as a win-win for workers and businesses alike.
How should employers prepare?
- Review your payroll setup to accommodate new salary structures
- Communicate proposed options to your workforce
- Train managers on opt-in vs mandatory rules
- Use tech tools like Workstem’s Payroll and Rostering to simplify the implementation
How Does Workstem Help?
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Choose between our Standard and Advanced plans, and enjoy a range of benefits such as Fair Work compliance, an employee self-service App, and custom rule set. We have integrated our system with Xero and NetSuite as well to bring you a complete HR SaaS solution for your business.
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Frequently Asked Questions
Q1: Will employees lose penalty rates?
A1: Not unless they voluntarily opt into the rolled-up salary model.
Q2: Do the changes apply to all staff?
A2: No. Most changes are optional. For example, the four-day week and manager salary model are opt-in only.
Q3: Can I implement changes now?
A3: Not until approved by the FWC. But reviewing your compliance systems now can help ease the transition.
Q4: Are public holidays still paid at penalty rates?
A4: Yes. All standard Award entitlements still apply unless a formal agreement is in place.
Q5: How can I keep track of these changes?
A5: Stay updated via the FWC website, subscribe to ARA newsletters, or consult platforms like Workstem for automated compliance.
Read more:
How to Keep Your Payroll System Updated with General Retail Industry Award Changes?
When to Pay Overtime under the Retail Award: Triggers and Rates
