Award Modernisation

The Award Modernisation process involved reviewing and rationalising the awards in the national workplace relations system so as to create a series of ‘modern awards.’

This process began in March 2008, and by the end of 2009, some 1500 awards had been reviewed and in their place 122 industry and occupational awards were created.

These [modern] awards commenced on the 1^st January 2010 however most will include transitional provisions to allow a ‘phasing in’ of changes in wages, loadings and penalties…over a five (5) year period.

These 122 modern awards together with ten (10) minimum National Employment Standards (NES), and the national minimum wage order, make up the ‘safety net’ for employees under this new system. Modern awards must not contain terms and conditions that are less favourable than the national employment standards (effective from 1 January 2010).

It is important to note that employers and employees in the national system have the same workplace rights and obligation, regardless of the state they work in.

Features of the national industrial relations system include:-

the National Employment Standards (as referred to above);
[modern] awards that apply nationally for specific industries and occupations;
a national wage order (where it applies);
enterprise bargaining, and
protection from unfair dismissal.

These modern awards cover employees in a particular industry or occupation, for example, employees of constitutional corporations covered by the national workplace relations system, including:-

in Victoria, the Australian Capital Territory and the Northern Territory – all other employment;
in New South Wales, Queensland and South Australia – all other private sector employment (form 1 January 2010), and
in Tasmania – all other private sector and local Government employment (from 1 January 2010).

The following are generally not covered:-

in Western Australia – state public sector and local Government employment and employment by non-constitutional corporations in the private sector;
in New South Wales, Queensland and South Australia – state public sector and local Government employment, and
in Tasmania – state public sector employment.

Note that employers and employees that are not covered by the national industrial relations system will remain covered by the applicable state industrial relations system, with the inclusion of provisions for national entitlements tom unpaid parental leave and notice of termination (or the payment of lieu thereof) as well as protection from the unlawful termination of employment.

Given these changes (i.e. the award modernisation process), the award previously used may well cease to exist, and as such it is imperative that employers and employees understand the modern award that covers their particular industry and/or occupation.

However, some employees are covered by an agreement and not an award. An agreement is a legally binding document negotiated between the employer and the employee and contains employment terms and conditions that are often more generous than those contained in awards

- John Cachia