Work Value Case: what the Nurses Award changes mean for your organisation

On 6 December 2024, the Full Bench of the Fair Work Commission (FWC) issued its third decision in relation to the Work Value Case, impacting enrolled and registered nurses classified under the Nurses Award 2020 (Nurses Award). To help you get across this decision, the team at Citation Legal has written this article which breaks down the key updates, their implications for your organisation, and how to prepare for compliance.

Background on the Work Value Case

This decision stemmed from the finding in November 2022 that the minimum wage rates for ‘direct care employees’ under the Nurses Award, Aged Care Award 2010 (Aged Care Award) and Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award) did not properly compensate for the value of work performed.

Over the course of the 2023 and 2024 calendar years, the FWC confirmed an interim wage increase of 15 per cent to minimum award rates of pay would apply to direct care employees, indicating there were reasons to warrant further increases beyond this interim increase. In June 2024, the FWC issued a decision in relation to increases to award rates of pay for direct care employees under the Aged Care Award and SCHADS Award, with these increases to take effect from 1 January 2025 and 1 October 2025.

Stage 1 Decision

A result of the Stage 1 decision was an interim increase of 15 per cent in modern award minimum wages for direct care employees. Direct care employees, the subject of the Stage 1 Decision, were:

• Registered Nurses (RNs), Enrolled Nurses (ENs), Assistants in Nursing and Nurse Practitioners in the Nurses Award;
• Home Care Workers in the SCHADS Award; and
• Personal Care Workers in the Aged Care Award.

Stage 2 Decision

On 21 February 2023, the FWC issued a decision (Stage 2 Decision) which confirmed the interim award wage increase of 15 per cent for direct care employees was necessary, and would have an operative date of 30 June 2023. In addition, the Stage 2 Decision confirmed that the interim 15 per cent wage increase should also apply to:

• Head Chefs/Cooks under the Aged Care Award (aged care employee level 4-7), provided they were the most senior food services employee engaged in the facility; and
• Recreational Activities Officers / Lifestyle Officers under the Aged Care Award.

Stage 3 Decision

On 15 March 2024, the FWC issued a further decision (Stage 3 Decision) to the effect that there were work value reasons to warrant:

• A further increase to minimum award rates of pay for direct care employees beyond the interim increase of 15 per cent; and
• A 3 per cent increase for indirect care employees (broadly, employees engaged in the general and administrative services stream and the food services stream).

Additionally, the FWC found that the work of Nursing Assistants in the aged care sector under the Nurses Award and personal care workers under the Aged Care Award were indistinguishable in terms of function and work value, and the coverage of nursing assistants should be excised form the Nurses Award and placed within the Aged Care Award.

Amendments to the Nurses Award 

The remaining issue before the FWC in December 2024 was whether the minimum wages for enrolled nurses and registered nurses working as an aged care employee under the Nurses Award were to be increased to ‘keep up’ with the increases to the Aged Care Award and SCHADS Award.

In its decision, the Full Bench of the FWC found the minimum award wages for enrolled nurses and registered nurses who were aged care employees were to be increased, with the increases to be implemented in three phases:

• 1 March 2025;
• 1 October 2025; and
• 1 August 2026.

In determining when increases to the Nurses Award would take effect, the FWC considered the fact that registered nurses and enrolled nurses make up approximately 25 per cent of the workforce as a whole. On this basis, the FWC took into account that only a small minority of registered nurses and enrolled nurses are paid the minimum rates under the Nurses Award, with market rates sitting substantially above the award rates.

How does this impact my organisation? 

The Nurses Award defines an ‘aged care employee’ as an employee engaged in the provision of:

• services for aged persons in a hostel, nursing home, aged care independent living units, aged care serviced apartments, garden settlement, retirement village or any other residential accommodation facility; or
• services for an aged person in a private residence.

On 1 March 2025, the Nurses Award was amended to:

• update the rates of pay for enrolled nurses and registered nurses who are aged care employees;
• introduce a new classification of ‘Enrolled Nurse supervising other direct care employees’ which replaces the ‘Enrolled nurse – aged care employee’ classification;
• introduce a new classification system for ‘Registered nurses – aged care employees’;
• alter how registered nurses under the ‘aged care employee’ stream progress through the classifications.

Practically, these amendments require for employers who employee enrolled nurses and registered nurses in the aged care employee stream to:

• convert employees previous classified under ‘Enrolled Nurses – Aged Care Employee’ in pay points 1 to 5 to the new classification of ‘Enrolled nurse supervising other direct care employees’;
• convert employees previously classified under the ‘Registered Nurse- Aged Care Employee’ pay points to the new classification structure;
• adhere to the new progression protocols for the ‘Registered Nurse – Aged Care Employee’ classification which entitles an employee to progress based on their years of employment for Levels 1-2, and progression to Levels 3-5 is premised upon the assessment of an employees capability, skills and position with the employer.

While the amendments are set to introduce higher rates of pay for aged care employees under the Nurses Award, where an employee was classified as a Registered Nurse – Aged Care Employee on 28 February 2025 in one of the following classifications, the employee is to be paid the higher of the minimum rate of pay under the Nurses Award as of 1 March 2025 or the minimum rate of pay as of 28 February 2025:

• Level 1 – Pay point 8 and thereafter;
• Level 4 – Grade 3;
• Level 5 – Grade 5;
• Level 5 – Grade 6.

Upcoming wage increases on the horizon 

Further wage increases for Enrolled Nurses and Registered Nurses in the aged care employees stream are scheduled to take effect on 1 October 2025 and 1 August 2026. Employers should continue to monitor the amendments to the Nurses Award and ensure your payroll systems are updated to reflect these changes.

How to prepare for these changes

Against this backdrop of change, aged care and home care providers must remain adaptable and informed as they strive to meet these rising expectations while navigating an evolving compliance landscape. The year ahead will bring both challenges and opportunities that will continue to redefine the industry.

At Citation Legal, we specialise in employment law for the aged care and disability sectors. Our experienced team understands the unique challenges faced by providers in this industry. We have a proven track record of guiding organisations through complex regulatory changes, helping them remain compliant while focusing on delivering quality care.

Don’t leave compliance to chance. Take proactive steps today to ensure your organisation is ready for the changes ahead. Contact the Citation Legal team for a confidential discussion today.

About our authors

Michal Roucek is a Partner and Solicitor at Citation Legal and is based in Sydney and has also worked in London. Since 2009, he has worked exclusively in workplace and industrial relations law and is known as a safe pair of hands in dealing with complex workplace disputes and strategic litigation in the full suite of employment, workplace relations, industrial relations and executive level. Michal is an interest-based advocate recognised by both the business and union-employee communities as a conciliatory and innovative problem solver. He is focussed on outcomes and solutions for clients.

Stevie Crouch is a qualified Solicitor and Senior Associate at Citation Legal. Based in our Sydney office, Stevie has extensive experience supporting and providing businesses with workplace relations advice. Having worked as in-house counsel and in an external legal advisory role, Stevie understands the unique challenges faced by small, medium and large Australian employers.