Workplace Relations Australia: What Are Modern Awards?

Thursday, March 25, 2010

What Are Modern Awards?

Background

Awards are age old mechanisms that guaranteed workers fundamental employment rights such as minimum wage, holidays, sick leave etc. Historically, depending on the industry or occupation, awards have been governed by State, Territory or Federal Legislation providing a complex and confusing Industrial landscape for all concerned. Accordingly the federal government via the Fair Work Act (see posting September 2009), set about modernising the myriad awards with a view of creating a system of “Modern Awards”. This process of modernisation has now been completed with the modern awards coming into effect on the 1st January 2010. As the 122 modern awards have replaced about 1700 federal and state-based awards, the impact of the wages and conditions in modern awards vary between states, industries and employers

Modern Award & employees who are Information Technology specialists.

Under the new modern awards, two employer/employee situations prevail.

Scenario 1:

The employer’s main area of business is not “principally engaged in the information technology industry”. For these employers and their employees there would appear to be no relevant modern award applicable to their IT workers.

Scenario 2

The employer is “principally engaged in the information Technology Industry”. The IT workers working for this employer full under the Professional Employees Award. Under this award the employer must a) make copies of the award available to employees, b) the parties may vary the award by agreement, c) minimum salaries are nominated (typically well below what is regarded as ‘industry standard’, d) salaries may not be reduced because of the award, e) Dispute resolution mechanisms are mandated. Future Posts will discuss this award in more detail.

How do I identify what Modern Awards effect my business?

Remember, modern awards only affect employees who work for companies that are defined as national employers governed by the Fair Work Act of 2009. The Sept 09 posting on this newsblog will help you work out what jurisdiction you fall under. The Fair Work website provides a search facility that will assist you with this. Find Modern Award Remember, if in doubt, don’t be afraid to seek advise.

National Employment Standard (NES) and Modern Awards?

If you are unfamiliar with the NES, the October 2009 posting on this NewsBlog provides a succinct overview. All awards incorporate the NES as the minimum standard that the award can offer. An award may offer benefits in excess to the NES but not less then. All employers and employees should therefore be familiar with the NES.

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Did You Know?

The new Fair Work Legislation came into effect on the 1st July 2009 replacing Work Choices 1995 and the Workplace Relations Act 1996

Unfair Dismissal

As from 1 July 2009, employers who employ 15 employees or more will be now be subject to the unfair dismissal legislation. However businesses with less than 15 full time equivalent employees are exempt from unfair dismissal claims during the employee’s first 12 months of employment.

The unfair dismissal legislation only applies to an employee who earned less than $153,600 (to 30 June 2021), not including commissions and bonuses unless they are subject to a modern award or enterprise agreement.

Leave

Under the new legislation sick leave is now referred to as personal and Carer’s leave provision.

Under the New Fair Work Legislation, all employees who fall under the act are entitled to 10 days personal Carer's leave per annum

Employee's sick leave entitlement is cumulative and there is also no upper limit. All unused leave is cumulated year on year indefinitely.

While on unpaid parental leave, an employee does not accumulate annual leave and personal/carer's leave (which includes sick leave). However, a period of unpaid parental leave does not break an employee's continuity of service for the purposes of long service leave?

You may refuse a request for annual leave if refusal is reasonable and necessary because of your business' operational requirements. Accordingly you may reject the employee's annual leave application. If you decide to do this however, you should explain these grounds clearly to the employee and discuss other times that may be more suitable.

Fair Work Inspector

A Fair Work Inspector has the right to inspect your workplace as part of an audit campaign or in response to a complaint.

On showing suitable identification, Fair Work Inspectors may undertake inspections without warning if they believe work governed by national workplace relations laws is/has been done there.

During an inspection, a Fair Work Inspector can

i) inspect any work, process or object

ii) interview any person,

iii) require a person to tell them who has custody of, or access to a record or document,

iv) require a person who has custody of, or access to a record or document to produce the record or document either while they are on the premises, or within a specific period,

v) inspect and make copies of any record or document that's kept on the premises or is accessible from a computer kept there, take samples of any goods or substances.