Document Details

Document Id	modern_awards.pdf
Document Title	Modern Awards
Reference	https://drive.google.com/uc?export=download&id=1963BhjS_eNcE-Lfm8v1kDgi-QbbwsZUb
Publisher	Fair Work Ombudsman
Categorization	Human Resource Management HR Compliance & Legal Management
Document Source	3921 characters in 0 pages. (pdf)
Tags	modern awards, employment conditions, National Employment Standards, workplace relations, Fair Work Commission, transitional arrangements, minimum wage, employee entitlements, award coverage

This document, published by the Fair Work Ombudsman, provides an overview of modern awards in Australia, which are essential legal documents that outline the minimum employment terms and conditions beyond the National Employment Standards (NES). Effective from January 1, 2010, modern awards cover various entitlements such as pay, working hours, breaks, and overtime for employees under the national workplace relations system. The document explains who is covered by these awards, the circumstances under which they do not apply, and the transitional arrangements that were in place to assist the shift to the modern award system. It emphasizes the importance of staying informed about current awards and offers resources for further assistance, including contact information for the Fair Work Infoline and links to relevant online tools.

The document outlines the concept of modern awards in Australia, which serve as legal frameworks establishing minimum employment conditions for workers under the national workplace relations system. Modern awards, effective from January 1, 2010, supplement the National Employment Standards (NES) by detailing entitlements such as pay, hours of work, rosters, breaks, allowances, penalty rates, and overtime. These awards are tailored to specific industries or occupations and apply to both employers and employees engaged in relevant work. The document clarifies that not all employees are covered by modern awards; for instance, managers or higher-income employees may fall outside the scope of these awards even if they work in an applicable industry. Additionally, if a business operates under a registered agreement, the conditions of the modern award may not apply unless the agreement's base pay rates are lower than those stipulated in the modern award, in which case the modern award rates will prevail. It also discusses scenarios where employees are considered 'award and agreement free,' meaning they are not covered by any modern award or registered agreement. In such cases, the National Minimum Wage and NES set the minimum employment conditions. Transitional arrangements were implemented to ease the transition to the modern award system, allowing for gradual adjustments in pay and conditions over a five-year period, which concluded on July 1, 2014. The Fair Work Commission has since introduced additional transitional arrangements for certain awards, and it is crucial for employers and employees to consult their specific modern awards for details. The document emphasizes the responsibility of both employers and employees to stay informed about modern awards and any changes, such as updates to the annual minimum wage. It provides resources for further assistance, including the Fair Work Infoline and links to online tools for finding applicable awards. The Fair Work Ombudsman encourages individuals to seek advice if they have questions about how modern awards apply to their situations, ensuring that they have access to reliable information and support.

Original content extracted from the source document.

Modern awards

What is a modern award?

A modern award is a document which sets out the minimum terms and conditions of employment on top of the National Employment Standards (NES). Modern awards came into effect on 1 January 2010. Modern awards provide entitlements such as:

 pay
 hours of work
 rosters
 breaks
 allowances
 penalty rates
 overtime.

Who is covered by a modern award?

Modern awards apply to all employees covered by the national workplace relations system.

Modern awards are industry or occupation-based, and apply to employers and employees who perform work covered by the award.

You can find out which modern award applies using our Find my award tool at fairwork.gov.au/findmyaward

Managers or higher income employees may not be covered by a modern award even if one applies to the industry in which they work.

When modern awards don't apply

A modern award will outline all the terms and conditions of employment for most employers and employees.

If the business is covered by a registered agreement, it is usually the case that the conditions of a modern award are no longer relevant. However, if the base rates of pay in an agreement are lower than those in the relevant modern award, the base rates of pay in the modern award will apply.

Some employers and employees will not be covered by an award or registered agreement. When an employee is not covered by an award of agreement, they are considered to be award and agreement free.

Fair Work Infoline: 13 13 94

In these situations, the National Minimum Wage and the NES will form the minimum terms and conditions of employment.

Find out more about the entitlements for award and agreement free employees at fairwork.gov.au/awardfree

Are there any transitional arrangements?

Transitional arrangements in most modern awards meant that rates of pay and certain other conditions were phased in over time. The majority of these arrangements ended on 1 July 2014.

The Fair Work Commission (FWC) has since made other rulings which have added further transitional arrangements to some awards. All employers and employees should consult their relevant modern award for specific transitional arrangements, including state-based differences.

If you require assistance, contact the Fair Work Infoline on 13 13 94 or alternatively, speak to your trade union or employer organisation for advice. For a list of registered organisations, see the Fair Work Commission website at fwc.gov.au/registeredorganisations/find-registered-organisation

Keeping up to date

All employers and employees are responsible for keeping up-to-date with the modern awards, any associated transitional arrangements, and future changes, for example, to the annual minimum wage. You can subscribe to email updates for your award at fairwork.gov.au/emailupdates

CONTACT US

Fair Work Online: www.fairwork.gov.au

Fair Work Infoline:

13 13 94

Need language help?

Contact the Translating and Interpreting Service (TIS) on 13 14 50

Hearing & speech assistance

Call through the National Relay Service (NRS):

For TTY: 13 36 77 . Ask for the Fair Work Infoline 13 13 94

Speak & Listen:

1300 555 727 . Ask for the Fair Work

Infoline 13 13 94

The Fair Work Ombudsman is committed to providing you with advice that you can rely on. The information contained in this fact sheet is general in nature. If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association or a workplace relations professional.

Last updated:

March 2023

Chunk 0 from Page 1 (What is a modern award?)

 pay
 hours of work
 rosters
 breaks
 allowances
 penalty rates
 overtime.

Chunk 1 from Page 1 (Who is covered by a modern award?)

Modern awards apply to all employees covered by the national workplace relations system. Modern awards are industry or occupation-based, and apply to employers and employees who perform work covered by the award. You can find out which modern award applies using our Find my award tool at fairwork.gov.au/findmyaward Managers or higher income employees may not be covered by a modern award even if one applies to the industry in which they work.

Chunk 2 from Page 1 (When modern awards don't apply)

A modern award will outline all the terms and conditions of employment for most employers and employees. If the business is covered by a registered agreement, it is usually the case that the conditions of a modern award are no longer relevant. However, if the base rates of pay in an agreement are lower than those in the relevant modern award, the base rates of pay in the modern award will apply. Some employers and employees will not be covered by an award or registered agreement. When an employee is not covered by an award of agreement, they are considered to be award and agreement free. Fair Work Infoline: 13 13 94 In these situations, the National Minimum Wage and the NES will form the minimum terms and conditions of employment. Find out more about the entitlements for award and agreement free employees at fairwork.gov.au/awardfree

Chunk 3 from Page 1 (Are there any transitional arrangements?)

While modern awards came into effect on 1 January 2010, the then Australian Industrial Relations Commission (AIRC) allowed for transitional arrangements over a five-year period to assist affected employers and employees in the move to the modern award system. Transitional arrangements in most modern awards meant that rates of pay and certain other conditions were phased in over time. The majority of these arrangements ended on 1 July 2014. The Fair Work Commission (FWC) has since made other rulings which have added further transitional arrangements to some awards. All employers and employees should consult their relevant modern award for specific transitional arrangements, including state-based differences. If you require assistance, contact the Fair Work Infoline on 13 13 94 or alternatively, speak to your trade union or employer organisation for advice. For a list of registered organisations, see the Fair Work Commission website at fwc.gov.au/registeredorganisations/find-registered-organisation

Chunk 4 from Page 1 (Keeping up to date)

Chunk 5 from Page 2 (CONTACT US)

Fair Work Online: www.fairwork.gov.au Fair Work Infoline: 13 13 94 Need language help? Contact the Translating and Interpreting Service (TIS) on 13 14 50

Chunk 6 from Page 2 (Hearing & speech assistance)

Call through the National Relay Service (NRS): For TTY: 13 36 77 . Ask for the Fair Work Infoline 13 13 94 Speak & Listen: 1300 555 727 . Ask for the Fair Work Infoline 13 13 94 The Fair Work Ombudsman is committed to providing you with advice that you can rely on. The information contained in this fact sheet is general in nature. If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association or a workplace relations professional. Last updated: March 2023 © Copyright Fair Work Ombudsman

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