In recent years, there have been numerous cases of underpayment in the electrical industry, with one high-profile case involving a $65k underpayment. To avoid falling into similar compliance traps, it is crucial for businesses to understand and adhere to the regulations set out in the Electrical Award (MA000025). In this blog, we will discuss how to avoid electrical award compliance mistakes by following best practices and staying informed on industry regulations.
The $65k Case: What Went Wrong?
The Violations
- Misclassified Workers: Level 4 electricians paid as Level 2 ($8.21/hr underpayment)
- Unpaid Overtime: 12 staff working 45+ hours/week without penalty rates
- Missing Allowances: Failed to pay electrician’s license allowance ($35.82/week) and industry allowance ($36.82/week) 111
The Evidence
- Timesheets vs. Payslips showed discrepancies
- Text messages admitting skipped allowances
- Union intervention forced back pay penalties
The Outcome:
- $65,000 backpay + $18,780 fines
- Court-ordered payroll audits for 2 years
Top 5 Electrical Award Compliance Mistakes
Mistake 1: Misclassifying Workers
Example: Paying a Grade 5 electrician ($26.18/hr) as Grade 3 ($24.49/hr) 1
Fix: Use Workstem’s Classification Tool to auto-assign levels based on duties.
Mistake 2: Incorrect Overtime Calculations
Rule: Overtime starts after 38h/week or 10h/day (1.5x first 2h, 2x thereafter) 5
Fix: Enable auto-overtime tracking in payroll software.
Mistake 3: Missing Allowances
Common omissions:
- License allowance ($35.82/week for qualified electricians)
- Industry allowance ($36.82/week)
- Travel reimbursement for apprentices 1
Fix: Pre-load allowances in Workstem’s system.
Mistake 4: Flat-Rate Scams
Case: “$35/hr all-inclusive” rate missed:
- Penalty rates ($52.50/hr Sundays)
- Overtime ($52.50–$70/hr)
Fix: Award interpretation software flags illegal flat rates.
Mistake 5: Ignoring Record-Keeping Rules
Requirement: Keep timesheets, payslips, and CCEWs for 7 years 13
Fix: Use digital audit trails in Workstem.
How to Protect Your Business
Step 1: Conduct a Payroll Audit
Compare:
- Timesheets vs. payslips
- Actual hours vs. award thresholds
Free Tool: Workstem’s Discrepancy Scanner
Step 2: Implement Automated Compliance
Workstem prevents errors by:
- ✔ Auto-classifying staff levels
- ✔ Calculating penalties (weekends, nights, PH)
- ✔ Generating audit-proof records
Step 3: Train Your Team
Key topics:
- Correct break scheduling (30min unpaid after 5h) 1
- Travel time pay (for apprentices) 11
- Casual conversion rules (after 12 months)
Stay Compliant with Workstem’s Award Interpretation！
Simplify award interpretation and payroll processing with Workstem, the all-in-one workforce management & payroll software designed for every industry. Our system supports 122+ modern awards & 34 EAs, including the Electrical Award 2025, and keeps you up-to-date with changes in wage rates, penalty rates, and overtime rules.
Managing Electrical Award (MA000025) payroll? Workstem automates:
- ✔ Pay rates & allowances (2025 updates included)
- ✔ Overtime & penalty calculations
- ✔ Leave accruals & rostering compliance
- Seamless integrations with Xero, NetSuite, and more
Choose from our Standard or Advanced plan to suit your business needs, and stay Fair Work compliant with confidence.
Book a free demo with our payroll experts and experience how Workstem can streamline your payroll and workforce operations.
FAQs About the Electrical Award 2025
Q1: Does MA000025 cover solar installers?
A1: Yes, if they perform electrical work (e.g., wiring, panel installation).
Q2: Are apprentices paid under this award?
A2: Yes, apprentices receive graduated pay rates (40-90% of Level 1 wage).
Q3：How is shift work calculated?
A3：Afternoon shifts: +15%, Night shifts: +30%.
Q4：What’s the minimum engagement period?
A4：4 hours for casuals, 3 hours for part-timers.
Q5: Can Workstem help with casual employee management?
A5: Absolutely. Workstem supports casual loading, dynamic rosters, and real-time tracking to ensure casual workers are paid correctly and fairly under the award.
Q6: Is Workstem compliant with Fair Work and STP2?
A6: Yes, Workstem is fully compliant with Fair Work obligations and Single Touch Payroll Phase 2 (STP2), ensuring seamless reporting to the ATO.
Automate MA000022 compliance with Workstem’s payroll software. [Start Free Trial]
Read More：
