Top 5 MA000025 Compliance Mistakes & How to Avoid $50k+ Fines

Top 5 MA000025 Compliance Mistakes & How to Avoid $50k+ Fines

Table of content

  1. Misclassifying Apprentices (2025 1-4 Level Changes)
  2. Failing to Pay Emergency Call-Out Allowances
  3. Incorrect Overtime Calculations (Weekend vs. Public Holiday Rates)
  4. Stay Compliant with Workstem’s Award Interpretation!
  5. FAQs About the Electrical Award 2025

Electrical contractors across Australia must comply with the Electrical, Electronic, and Communications Contracting Award (MA000025) to avoid costly penalties. Fair Work Ombudsman audits have uncovered repeated violations, leading to fines exceeding $50,000 for non-compliance.

This guide breaks down the top 5 MA000025 compliance mistakes—including misclassified apprentices, unpaid emergency call-out allowances, and tool reimbursement disputes—and provides actionable solutions to stay compliant.

Misclassifying Apprentices (2025 1-4 Level Changes)

Mistake: Incorrectly categorising apprentices under outdated wage levels. The 2025 updates introduced revised classifications, and employers must apply the correct pay rates.

How to Avoid:

  • ✔ Refer to the latest Fair Work MA000025 pay guide (2024-25)
  • ✔ Use Workstem’s automated award interpretation tool to ensure correct classification
  • ✔ Download our MA000025 Compliance Checklist

Penalty Risk: Up to $12,600 per breach

Failing to Pay Emergency Call-Out Allowances

Mistake: Not compensating employees for emergency work outside ordinary hours (minimum 4-hour call-out payment required).

How to Avoid:

  • ✔ Apply clause 18.5 of MA000025 (emergency rates: 200% for first 3 hours, 300% thereafter)
  • ✔ Automate call-out tracking with Workstem’s rostering system

Penalty Risk: $10,000+ per instance

Not Reimbursing Tools & Equipment ($250+ Requirement)

Mistake: Failing to reimburse employees for specialist tools over $250 (e.g., insulated testers, HV equipment).

How to Avoid:

  • ✔ Maintain records of tool purchases (receipts required)
  • ✔ Use Workstem’s expense management to auto-calculate reimbursements

Penalty Risk: $6,250 per dispute

Incorrect Overtime Calculations (Weekend vs. Public Holiday Rates)

Mistake: Applying standard overtime instead of Saturday (150%), Sunday (200%), or Public Holiday (250%) rates.

How to Avoid:

  • ✔ Refer to MA000025 Clause 20
  • ✔ Integrate Workstem’s payroll software for auto-calculated penalty rates

Penalty Risk: $8,400+ in backpay claims

Ignoring Travel & Relocation Allowances

Mistake: Not paying daily travel allowance ($23.40) or relocation costs for remote work.

How to Avoid:

  • ✔ Track employee locations with geofenced timesheets
  • ✔ Automate travel pay in Workstem’s award-compliant payroll

Penalty Risk: $5,000+ per employee

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:

Electrical Award Guide [MA000025]

Awards

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