An Overview
Modern awards commenced from 1 January 2010 and cover most businesses in the national workplace relations system. Modern awards together with the National Employment Standards (NES) and the national minimum wage orders made by Fair Work Australia make up a new safety net for employees covered by the national workplace relations system.
Modern awards replace existing:
-
Federal (pre-reform) awards (except those applying to a single enterprise)
- Notional agreements preserving state awards (NAPSAs)
- State reference transitional awards
- Modern award wages start on 1 January 2010 (where the modern award contains no transitional provisions)
- Transitional provisions in most awards mean that rates of pay and other conditions do not come into force until 1 July 2010 and may be phased in over 5 annual instalments.
Who’s covered by a modern award?
Modern awards cover employers and employees in the national workplace relations system. Most employers and employees previously operating under an award or a pay scale are covered by a modern award.
Modern awards are industry or occupation-based, and apply to all employers and employees who perform work covered by a particular modern award.
However, employees who are paid a guaranteed amount of $108,300 a year (indexed annually) are not covered by a modern award. Many managers and higher income employees may not be covered by a modern award - even if there is a relevant modern award for their industry.
Source: www.fairwork.gov.au | 