What is a modern award and does it apply to me?
A modern award is a legal document setting out minimum terms and conditions for specific industries or occupations across Australia. It applies to most employees in the national workplace relations system unless covered by an enterprise agreement.
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How it works in practice
Understanding Modern Awards
A modern award is a legally enforceable industrial instrument that establishes the minimum terms and conditions of employment for employees in a particular industry or occupation across Australia. These awards form a crucial part of the national workplace relations system, acting as a safety net of entitlements for employees.
What Awards Cover
Modern awards cover various aspects of employment, including minimum wages, types of employment (full-time, part-time, casual), hours of work, rostering, breaks, allowances, penalty rates, overtime, and leave entitlements such as annual leave, personal leave, and compassionate leave. They ensure that all covered employees receive fair and consistent treatment regardless of their employer's individual policies.
Applicability
Most employees and employers in the Australian private sector are covered by a modern award. You are typically covered by an award relevant to your industry or occupation, even if your employer does not explicitly mention it. Awards provide the foundational employment conditions, which can then be supplemented by individual employment contracts or enterprise agreements, as long as these do not undercut the award minimums.
Important exceptions
There are several exceptions to modern award coverage. Employees earning above the high income threshold (which is updated annually) may not be covered if they are under a valid guarantee of annual earnings. Additionally, employees covered by a registered enterprise agreement will have their terms and conditions outlined in that agreement, which overrides the modern award. Finally, some employees in highly specialised roles or senior management might be 'award-free,' meaning their minimum conditions are solely derived from the National Employment Standards (NES) and their employment contract.
What you should do now
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Visit the Fair Work Ombudsman website to access their 'Find my award' tool.
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Accurately identify your industry and occupation to determine which modern award, if any, applies to you.
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Review the specific modern award relevant to your role to understand your minimum wages, hours, and other entitlements.
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Compare the award's provisions with your employment contract or enterprise agreement to ensure you are receiving at least the minimum entitlements.
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If you have any uncertainties or believe your rights are not being met, contact the Fair Work Ombudsman for further advice.
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