NEW WORK LAWS - Modern awards: updating a great Australian system

Australia’s award wage system is unique in the world. It brings together employees and employers together with an independent umpire to set minimum wages and conditions. The award is like a industry ‘rule book’ about minimum wages and protections on working conditions–also covering important stuff like pay rates, hour of work and other benefits like sick pay.

The government has asked Fair Work Australia to update the awards by 1 January 2010. The existing awards can be very complicated because they have been added to and changed a lot over the years. It is hoped that the new modern awards will be more straightforward.

Modern awards build on the National Employment Standards and may include an additional 10 minimum conditions of employment, tailored to the needs of the particular industry or occupation.

These include minimum wages, types of employment, arrangements for when work is performed, overtime and penalty rates, annualised wage or salary arrangements, allowances, leave related matters, superannuation and procedures for consultation, representation and dispute settlement.

Each modern award will have a clause that enables employers and employees to negotiate arrangements to meet their individual needs. Important protections will make sure that an employee is better off overall under the special arrangement. This is known as the ‘Better Off Overall’ test.

Modern awards will not apply to employees with guaranteed annual earnings of more than $100,000 (pro rata for part-time employees).

The combination of the national employment standards and modern awards mean that all employees earning less than $100,000 per year will have working conditions that cannot be taken away.

RELATED WORKSITE LINKS

New work laws 1: Introducing Fair Work Australia

New work laws 2: Minimum employment standards

New work laws 4: Unfair dismissal – protection against getting the sack for no good reason