Significance

Modern awards are the most significant change to industrial relations that Australia has ever experienced. Repercussions of the changes are:

• Modern awards are used as the point of comparison for approving enterprise agreements in relation to the “better off overall test”;
• Modern award conditions will apply to employees on award-derived conditions, including individual flexibility arrangements (subject to state-based differences);
• The rate of pay in workplace agreements must meet or exceed the minimum rate of pay contained and updated within modern awards; and
• Employees traditionally not covered by awards and engaged under a common law contract of employment may become covered by a modern award and be able to make a wage claim or unfair dismissal application (this is particularly the case for lower level management employees\especially in service industries).

Be sure to review your applicable modern award to ensure your employees are correctly paid for there hours of work where new penalties or allowances may apply.