6306.0.55.001 - Microdata: Employee Earnings and Hours, Australia, May 2012 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 04/06/2013   
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GLOSSARY

Adult employees

Employees who are 21 years of age or over, and employees under 21 years old who are paid at the full adult rate for their occupation.

Award only

Awards are legally enforceable determinations made by federal or state industrial tribunals that set the terms of employment (pay and/or conditions) usually in a particular industry or occupation.

Awards may be the sole mechanism used to set the pay and/or conditions for an employee or group of employees, or alternatively may be used in conjunction with an individual or collective agreement. Employees are classified to the Award or pay scale only category if they are paid at the rate of pay specified in the Award and are not paid more than that rate of pay.

Cash earnings

Remuneration paid to employees on a regular and frequent basis (quarterly or more frequently) for time worked or work done and for time not worked, such as recreation and other types of leave. Cash earnings (inclusive of amounts salary sacrificed) are gross amounts, that is, before tax and other items (e.g. superannuation) are deducted.

Casual employees

Employees who have been identified as being employed on a casual basis. Casual employees usually receive a higher rate of pay, to compensate for lack of permanency and leave entitlements.

Casual loading

A higher rate of pay an employee receives to compensate for lack of permanency or leave entitlements.

Collective agreement

An agreement between an employer (or group of employers) and a group of employees (or one or more unions or employee associations representing the employees). A collective agreement sets the terms of employment (pay and/or conditions) for a group of employees, and is usually registered with a federal or state industrial tribunal or authority.

Employees are classified to the Collective agreement category if they had the main part of their pay set by a registered or unregistered collective agreement or enterprise award.

Employees

Persons who worked for a private or public employer and received pay for the reference period in the form of wages or salaries, a commission while also receiving a retainer, tips, piece rates or payment in kind. Persons who operated their own incorporated business with or without hiring employees were also included as employees.

Employer size

A measure of the size of the business in terms of the number of employees within that business. The employer size reflects the size of the business in a particular state or territory and not necessarily the size of the business Australia-wide.

Full-time employees

Employees who normally work the agreed or award hours for a full-time employee in their occupation. If agreed or award hours do not apply, employees are regarded as full-time if they usually work 35 hours or more per week.

Individual arrangement

An arrangement between an employer and an individual employee on the terms of employment (pay and/or conditions) for the employee. Common types of individual arrangements are individual contracts, letters of offer and common law contracts. An individual contract (or letter of offer) may specify all terms of employment, or alternatively may reference an award for some conditions and/or in the setting of pay (e.g. over award payments). Individual contracts may also be registered with a federal or state industrial tribunal or authority (e.g. as an Australian Workplace Agreement). However, the Workplace Relations Amendment (Transition to Forward with Fairness) Act 2008 ceased the registration of new individual agreements from 28 March 2008.

Employees are classified to the Individual arrangement category if they have the main part of their pay set by an individual contract, registered individual agreement (e.g. Australian Workplace Agreement), common law contract, or if they receive over award payments by individual agreement.

Industry

Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (cat. no. 1292.0).

Junior employees

Employees who are under 21 years of age and are not paid at the full adult rate for their occupation.

Jurisdiction

The workplace relations jurisdiction (i.e. federal or state) under which an employee is deemed to be for pay-setting purposes, based on the jurisdiction of the employer.

Jurisdiction of registered agreement

The federal or state industrial tribunal or authority with which written individual or collective agreements have been certified, approved or registered. Estimates have been compiled based on the workplace relations environment following the introduction of the Fair Work Act 2009 and the subsequent introduction of the Fair Work (State Referral and Consequential and Other Amendments) Act, which allowed for the extension of the Fair Work Act to states that refer workplace relations related matters to the Commonwealth. The Fair Work system replaces the Workplace Relations Amendment (Work Choices) Act 2005 which came into effect in March 2006.

Employees based in the Northern Territory, Australian Capital Territory and Victoria are covered by the national system. From 1 January 2010, employees of private sector employers in New South Wales, Queensland, South Australia and Tasmania are also covered by the national system. Employees based in other states may be covered by either the national or state system depending on the circumstances that prevail in the workplace.

Managerial employees

Employees who have strategic responsibilities in the conduct or operations of the organisation and/or are in charge of a significant number of employees. These employees usually do not have an entitlement to paid overtime. Includes professionally qualified staff who primarily perform managerial tasks in conjunction with utilising their professional skills. Owner managers of incorporated enterprises are regarded as managerial employees.

Method of setting pay

How an employee's pay is set. Employees are classified to one of the following categories: Award only; Collective agreement; Individual arrangement; or Owner manager of incorporated enterprise. Employees classified to the Collective agreement or Individual arrangement categories are further classified according to whether the agreement is registered with a federal or state industrial tribunal or authority.

Non-managerial employees

Employees who are not managerial employees (as defined above), including non-managerial professionals and some employees with supervisory responsibilities.

Occupation

Classified according to the Australian and New Zealand Standard Classification of Occupations (ANZSCO), First Edition, 2006 (cat. no. 1220.0).

Ordinary time cash earnings

Payment for award, standard or agreed hours of work, including allowances, penalty payments, payments by measured result and regular bonuses and commissions. Ordinary time cash earnings are inclusive of amounts salary sacrificed. Excluded are non-cash components of salary packages, overtime payments, retrospective pay, pay in advance, leave loadings, severance pay, and termination and redundancy payments.

Ordinary time hours paid for

Award, standard or agreed hours of work, paid for at the ordinary time rate. Included are stand-by or reporting time which are part of standard hours of work, and that part of annual leave, paid sick leave and long service leave taken during the reference period. Ordinary time hours paid for was not collected for managerial employees.

Overtime cash earnings

Payment for hours in excess of award, standard or agreed hours of work.

Overtime hours paid for

Hours which are in excess of award, standard or agreed hours of work, paid for at the overtime rate. Overtime hours paid for was not collected for managerial employees.

Owner manager of incorporated enterprise

Persons who work in their own incorporated enterprise - that is, a business entity which is registered as a separate legal entity to its members or owners (for example, a limited liability company). Owner managers of incorporated enterprises are presented separately in estimates that are clarified by method of setting pay.

Part-time employees

Employees who normally work fewer than the agreed or award hours for a full-time employee in their occupation. If agreed or award hours do not apply, employees are regarded as part-time if they usually work fewer than 35 hours per week.

Permanent or fixed term employees

Permanent employees are usually employed on an ongoing basis and are entitled to paid annual and sick leave. Fixed term employees are employed for a specified period of employment, and may be entitled to paid leave.

Reference period

The survey refers to the last pay period ending on or before 18 May 2012. All estimates of earnings and hours in this publication are weekly, therefore, for employees paid other than weekly, estimates of earnings and hours have been converted to a weekly basis.

Salary sacrifice

Salary sacrifice is defined as an arrangement where an employee agrees to forgo part of their pre-tax salary in return for benefits. Common types of salary sacrifice arrangements include pre-tax contributions to superannuation funds and novated leases for motor vehicles.

SAS

A data analysis and statistical software system.

Sector

Public sector comprises local government authorities and all government departments and agencies created by, or reporting to, the Commonwealth, or State/Territory Parliaments. The private sector comprises all organisations not classified as public sector.

SPSS

A data analysis and statistical software system.

STATA

A data analysis and statistical software system.

Total hours paid for

Equal to ordinary time hours paid for plus overtime hours paid for. Total hours paid for was not collected for managerial employees.

Weekly total cash earnings

Weekly total cash earnings of employees is regular wages and salaries in cash and is equal to weekly ordinary time cash earnings plus weekly overtime cash earnings.