Working conditions are determined by National Employment Standards, modern awards, enterprise agreements, or an employment contract.
National Employment Standards, modern awards and enterprise agreements are part of Australia’s national workplace relations system (Fair Work System). They are the minimum working conditions set by the federal government for certain types of jobs. Not all employees will be covered by a modern award or an enterprise agreement, but nearly all employees will be covered by the National Employment Standards.
Your employment contract sets out the other conditions of your work. All employees will have a contract (even if it is not written down). The conditions in your employment contract cannot be less than the National Employment Standards or those in your modern award or enterprise agreement.
You can find out more about the National Employment Standards here.
Click on the links below for more information on:
The Fair Work System came into effect from January 2010.
The most important parts of Fair Work System for you to be aware of are the National Employment Standards (NES), modern awards and enterprise agreements.
Who is covered by the Fair Work System?
Employees covered by the Fair Work System include those:
Who isn’t covered by the Fair Work System?
The following are generally NOT covered by the Fair Work System:
The National Employment Standards are a set of 10 minimum employment conditions that an employee covered by the Fair Work System is entitled to.
The National Employment Standards apply to ALL full time and part time employees but only certain entitlements apply to casual employees.
The 10 National Employment Standards are:
You can check out more online here.
I’m a casual employee, what am I entitled to?
Casual employees are entitled to:
In addition, casual employees who have been employed for at least 12 months by an employer on a regular and systematic basis and with an expectation of ongoing employment on a regular and systematic basis are entitled to:
Modern awards were created with effect from 1 January 2010 to establish minimum conditions for employers and employees across Australia who work in the same industries or occupations.
Modern awards have simplified thousands of state and federal awards to create 122 awards of general application, and will cover many employees and employers in the Fair Work System.
Which modern award (or other arrangement) am I covered by?
Not all employees are covered by a modern award. Finding your modern award can be complicated – it depends on factors including your job type and duties, who your employer is and the industry in which your employer operates.
Use this link to find an Award: https://www.fairwork.gov.au/awards-and-agreements/awards/find-my-award/.
What’s in a modern award?
Modern awards can contain terms relating to:
In addition, modern awards must also have a flexibility term, which means employers and employees are able to negotiate changes to certain modern award terms to meet their individual needs.
An enterprise agreement is a legally binding agreement which is negotiated between an employer and all, or some, of its employees.
To be valid, an enterprise agreement must be bargained between an employer and its employees (who may be represented by a union); meet the requirements of the Fair Work Act 2009 and be approved by the Fair Work Commission.
This includes that employees must be better off overall under the enterprise agreement than they would be under the modern award/s that would otherwise apply to their employment and that the terms in the enterprise agreement are consistent with the National Employment Standards.
Terms and conditions under an enterprise agreement are similar to those under modern awards and include things such as minimum wages, overtime, penalty rates, allowances and leave entitlements.
Once approved, an enterprise agreement will set minimum terms and conditions for those employees it covers until it is terminated or replaced.
Enterprise agreements have a nominal expiry date of up to four years from when they commence.
While an enterprise agreement covers your employment, it applies to the exclusion of any modern award that would have otherwise applied to you. However, the rates of pay under an enterprise agreement cannot be less than minimum hourly rate of pay under a modern award that would have otherwise applied to you.
Where can I get further information?
For information and advice about the Fair Work System including your rights, entitlements and obligations, visit the Fair Work Ombudsman website or call the Fair Work Info line on 13 13 94.
A contract of employment is made when an employer offers you a job and agrees to pay you for your work. The employment contract can be written or verbal.
A contract of employment sets out the terms and conditions for your job such as your pay, annual leave, personal leave and hours of work.
Employment contracts can be formal or informal agreements.
Your employment contract must give you working conditions that are as good as the National Employment Standards. If you are covered by a modern award, your employment contract must also give you working conditions that are as good as or better than the award.
If you’re under 25 and have a question about working conditions that we haven’t answered here, please contact us here and we can give you free information and advice.
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