One of the key changes to occur under the new Fair Work system is the modernisation of awards operating in the Commonwealth workplace relations system. The Australian Industrial Relations Commission (AIRC) is currently consolidating the thousands of existing awards into industry or occupation-based categories to reduce the confusion surrounding proper minimum employment entitlements.
From 1 January 2010 onwards, most industries will be subject to a modern award.
Who is affected by modern awards?
Modern awards will cover all employers and employees in the national workplace relations system.
The national workplace relations system covers those who are:
- employed by a constitutional corporation (including
Pty Ltd companies)
- employed in Victoria, the Northern Territory or the ACT
- employed by the Commonwealth or a Commonwealth authority
- a waterside employee, maritime employee, or flight crew officer employed in connection with interstate or overseas trade or commerce.
Modern awards are industry or occupation-based, and will apply to employers and employees who perform work covered by the award.
However, managers or higher income employees may not be covered by a modern award even if one applies to the industry in which they work.
What do these changes mean for me?
If you are an employer or employee currently operating under an existing award, there is a good chance you will be covered by a modern award in the future.
Modern awards will commence on 1 January 2010 and, at this point, many people’s minimum entitlements will change. You will need to determine before this date whether the work you do will be covered by a modern award and when it takes effect.
You will also need to check whether any terms and conditions of employment have changed, and if there are any transitional arrangements that may affect these changes.
Please contact the Fair Work Infoline on 13 13 94, or visit www.fairwork.gov.au for assistance.
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Are there any transitional arrangements?
While modern awards commence operation on 1 January 2010, the AIRC has allowed for transitional arrangements over a five-year period to assist affected employers and employees in the move to the modern award system.
The AIRC determined that any increases or decreases in wages, loadings and penalty rates would be phased in from 1 July 2010.
This includes:
- minimum wages
- casual and part time loadings
- Saturday, Sunday and public holiday penalty rates
- evening and other penalty rates
- shift allowances.
This period provides time for the parties affected by a modern award to make the required changes. During the period between 1 January 2010 and 1 July 2010, the pre-modern award pay-related entitlements remain in effect. That means entitlements contained within a pre-modern award (e.g. a federal award, or NAPSA) regarding any of the above continue to operate.
From 1 July 2010, if a modern award results in an increase or decrease in wages or penalty rates, some modern awards will allow for the incremental phasing-in of changes to minimum wages or penalty rates over a five-year period.
However, all other entitlements under modern awards will apply from 1 January 2010.
All employers and employees should consult their relevant modern award for specific transitional arrangements, including state-based diff erences.
If you require assistance, contact the Fair Work Infoline or, alternatively, speak to your trade union or employer organisation for advice.
Where can I find modern awards?
Modern awards can be found at:
Australian Industrial Relations Commission
What do I need to do in the future?
All employers and employees are responsible for keeping up-to-date with the modern awards, any associated transitional arrangements, and future changes, for example, to the annual minimum wage.
Visit www.fairwork.gov.au for updates.
Where can I get further information?
For further information on your rights and obligations under Commonwealth workplace laws, please contact the Fair Work Ombudsman on 13 13 94, or go to www.fairwork.gov.au
Alternatively, for information on the award modernisation process, contact Fair Work Australia on 1300 799 675.
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