Modern Awards
Modern awards set minimum wages and conditions of employment for most employees in the national workplace relations system. They apply to a wide range of industries and occupations, and form a critical part of Australia’s employment law framework.
Modern awards commenced operation on 1 January 2010 and are made and varied by the Fair Work Commission. They operate alongside the National Employment Standards (NES) and other legislative requirements.
Determining which modern award applies can be complex and requires careful analysis of the work performed by each employee. In most cases, an employee will be covered by a single modern award, although different employees within the same organisation may be covered by different awards depending on their roles.
To identify the applicable award, employers should:
- Clearly define the duties and responsibilities of each role
- Review relevant modern awards for potential coverage
- Analyse the coverage clause and classification structure to confirm applicability
Correct award classification is essential. Errors can result in underpayment, compliance breaches and exposure to claims.
Australian Workplace Strategies has experience in advising on award coverage and interpretation. Our team has also participated in the award modernisation process before the Australian Industrial Relations Commission (the predecessor to the Fair Work Commission), including in sectors such as building services