Pay Rates

Independent contractor or employee?

The first step in determining the appropriate rates of pay for workers in the dance sector is understanding whether someone is an employee or an independent contractor.

There are a range of factors that determine whether someone is a contractor or not. The Fair Work Ombudsman outlines a number of these factors here and they include (but are not limited to) things like:

  • the intentions of both parties;

  • the amount of control that the employer/client has over how work is performed; and

  • whether the individual is able to delegate or subcontract work.

Essentially, the difference is as follows:

  • INDEPENDENT CONTRACTORS work for themselves and are their own boss.

  • EMPLOYEES work in someone else’s business – the employer controls how, where and when they do their work, and pays them a wage.

Where someone is engaged to work as an independent contractor, there is no minimum rate of pay that must be paid. Instead the amount that is paid is negotiated by both parties until they both agree.

Below is a link to an Ausdance QLD factsheet, which outlines some things that both workers and businesses should consider when working out fees if the worker is an independent contractor.

Employee pay and conditions

If you engage a worker as an employee, then there are minimum rates of pay that apply to their engagement which can be found in the relevant ‘modern award’.

A ‘modern award’ is a legal document that outlines the minimum pay rates and conditions of employment for most employees in Australia. The applicable rates of pay and conditions of employment will depend on which modern award applies to an employee’s role.

Modern awards are not optional, as they are a legal baseline even if a business is paying above award rates, or they are operating as a sole trader or partnership.

A full list of all modern awards can be located on the Fair Work Commission’s website here.

The most commonly used modern awards for the dance sector are:

An employer may also have an enterprise agreement that will generally provide for conditions and pay above the modern award. This may be more common to see for professional touring productions, but is relatively uncommon to see at dance studios.

Modern awards are constantly being amended with rates of pay generally being increased annually, so employees and employers should ensure they are always double checking their applicable modern award.

DANCE TEACHERS/INSTRUCTORS

Dance studios and their employees, particularly dance teachers/instructors, will generally be covered by the Fitness Industry Award 2020.

DANCERS/COMPANY DANCERS

Employers and their employees in the live performance industry will generally be covered by the Live Performance Award 2020.

Head to Part 5—Performers and Company Dancers (clauses 27 - 35) of the Live Performance Award for information specifically for dancers on:

  • Types of employment

  • Minimum engagements

  • Overtime and penalty rates

  • Minimum rates of pay

  • Allowances

  • Requirements around ordinary hours of work and rostering

  • Breaks

Checking an employee’s pay rates

In order to determine the minimum rates of pay, you will also need to confirm the classification level of an employee’s role. Employees who work in roles classified at a higher level will receive a higher minimum rate of pay.

The descriptions for each level are outlined in a section near the end of most modern awards: ‘Schedule A—Classification Definitions’. This section outlines all of the possible level classifications for employees under the award. Usually the appropriate level for a role will depend on a range of factors, including level of experience, qualifications required, and what duties are performed.

While it is possible to find the minimum rates of pay for an employee just by looking in the modern award, the Fair Work Ombudsman has also created some useful resources and tools that can make it easier.

Pay and Conditions Tool (PACT) Pay Calculator

The Fair Work Ombudsman’s Pay Calculator asks a few simple questions to help determine the minimum rate of pay for an employee.

To access the tool, just click the link to the right (‘PACT PAY CALCULATOR’) to access the tool.

The questions you will need to answer can vary, but generally include:

  1. What is your applicable modern award?

  2. Are you a trainee/apprentice or on a ‘supported wage’?

  3. What is your classification level?

  4. Are you full-time (38 hours per week), part-time (between 3 - 38 hours per week), or casual?

  5. What is your age?

Modern Award Pay Guides

The Fair Work Ombudsman also creates and updates ‘Pay Guides’ for each modern award. These pay guides are more detailed and outline all of the minimum rates of pay applicable to employees under a modern award.

To use the pay guides to determine the minimum rates of pay, just:

  1. Click on the link to the right (‘PAY GUIDES’).

  2. Scroll through the alphabetically ordered list of modern awards to find your modern award (i.e. Fitness Industry Award).

  3. Click on the '(DOCX)’ or ‘(PDF)’ link for your modern award to download the pay guide as either a PDF or word document.

  4. Scroll through the pay guide to find the relevant section for the employee(s) concerned.