Get the right pay

We all know that some people get paid more than others. But why is this so? How is it worked out? Who says who gets what? These are big questions that employers, unions and governments have spent over a century arguing about!

Australia has work rules that guarantee all employees some basic rights and spell out important things like the rate of pay, maximum hours, holidays and a fair go.

Most jobs are covered by a set of rules called an industrial award. The award is made by the Industrial Relations Commission (or similar state commissions). The award grants all wage earners in an industry the same minimum conditions of employment and wages.

The award sets the minimum rate of pay for new employees right up to the most experienced and skilled workers. Many awards will have ‘junior’ rates for employees less than 21 years of age.

1st job fact:

Your pay must be paid at least the minimum rate in the award for your industry – it can be more, but it can’t be less.

Awards also contain other important work rights, including:

Hours of work – including overtime and penalty rates – a full-time job is usually around 38 hours per week. Most awards will include more pay for extra hours worked (overtime rates) or unusual hours such as late nights or weekends or public holidays (penalty rates).

Personal leave – sometimes called sick leave or carer’s leave – this is paid leave for times when you are ill or need to care for a family member.

Recreation leave – sometimes called holiday pay or annual leave – this is paid leave to give workers a ‘well earned break’. For full-time employees, the minimum paid leave is four weeks each year.

Parental leave – leave for new mums and dads – having a baby is a big deal and both parents are entitled to special leave to care for children. The mother is entitled to 12 months unpaid leave around the birth (some awards include paid leave). Fathers also get paid time off around the birth and more men are taking leave to look after children.

Awards include other working conditions like work breaks, allowances, training and ways of dealing with disputes.

1st job fact:

Casual employees get paid 20% more to make up for not getting paid leave.

Beyond awards

There is an industrial award for almost every job – but there are also some agreements that are worked out specifically for an enterprise or individual – but these must not result in employees getting less pay or conditions than the award.

There are two types on non-award employment arrangements:

Enterprise agreements – this is like an ‘award’ created for just one company. Enterprise agreements are registered with the industrial relations commission and must be at least equal to the award. Individual contracts – including Australian Workplace Agreements – these are unlikely to apply to a young person in their first job. (The Rudd Federal Government changed the rules to stop new AWAs from March 2008 – although some young people may be employed under AWAs signed before then).

Download the facts