23/09/2022
Modern Awards
What is a Modern Award?
Modern Awards are documents that set the minimum employment conditions above the National Employment Standards (NES).
How many Modern Awards are there?
There are currently 121 Modern Awards. They are a mix of Industry Awards, that apply to a an entire industry i.e. Hospitality Industry (General) Award, and Professional Awards, i.e. Clerks - Private Sector Award, that apply to roles that apply to specific jobs or professions regardless of Industry.
How do I know which Award(s) apply yo my business?
You need to choose the Award(s) that best suit the business and/or profession. Each Award has a Coverage clause (usually Section 4 in the Award) that details who the Award is intended to cover. If there are two awards that that provide coverage, you need to choose the Award that best fits.
Can my business be covered under more than one Award?
Yes, businesses can easily come under two or more Awards, particularly when there isn't an Industry Award that provides cover.
I pay above the minimum wage in the NES so do I need to worry about what my Award(s) say?
Yes, the minimum wage set by the Fair Work Commission is different to the minimum rates set in Modern Awards, with Awards often having higher wages and additional benefits payable by an employer. Without understanding the Awards that apply to your business you run the risk of underpaying employees and a visit from the Fair Work Ombudsman.
How can I get more help understanding what Award(s) apply to my business and what they mean?
SMK HR Consulting can assist with both Award classification and interpretation. Feel free to reach out to see how we can help protect you and your business.