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Employsure Workplace Presentation | Modern Award vs Enterprise Agreement
This document explains the differences between modern awards and enterprise agreements in Australia, outlining the entitlements provided by modern awards and the approval process for enterprise agreements under the Fair Work Act 2009. Modern awards set minimum standards for employee wages and conditions, while enterprise agreements can be tailored to specific organizations and must be approved by the Fair Work Commission. The document also highlights the mandatory terms required in enterprise agreements and emphasizes the need for compliance with national employment standards.
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Employsure Workplace Presentation | Modern Award vs Enterprise Agreement
- 2. Modern Awards vsEnterprise Agreements This presentation explains Modern Awards and Enterprise Agreements, concluding with the differences between the two. For more detailed information please call Employsure on 1300 651 415.
- 3. Modern Awards What isa Modern Award? Modern Award outline the entitlements of employees wages and conditions such as: • Type of employment • Overtime • Penalty rates • Wages • Allowance • Superannuation • Leave entitlements Modern Awards are based on industry and occupation and there are over 122 in existence.
- 4. Are all Australianscovered by an Award? All employees in Australia are covered by one of the below: • Modern Award • Enterprise Agreement • Employment contract or another registered agreement All these must adhere to the 10 National Employment Standards.
- 5. National Employment Standards TheNational Employment Standards are the 10 minimum entitlements for all employees in Australia, these are: • Maximum weekly working hours • Requests for flexible working arrangements • Parental leave and related entitlements • Annual leave • Personal carer’s leave and compassionate leave • Community service leave • Long service leave • Public holidays • Notice of termination and redundancy pay • Provision of a Fair Work Information Statement
- 6. Enterprise Agreements What isan Enterprise Agreement? The Fair Work Act 2009 allows employers and employees to form an agreement rather than adhering to a Modern Award. These agreements set out the terms and conditions of employment and cannot contain anything less than what is offered in the Modern Award. An Enterprise Agreement must be Approved by the Fair Work Commission.
- 7. Enterprise Agreements Once approvedby the Fair Work Commission, an enterprise agreement may: • Replace any applicable Modern Awards to act as the base terms and conditions of employment for those employees who are covered by the agreement. • Incorporate the terms contained in the relevant parent Modern Award.
- 8. Enterprise Agreements Under theFair Work Act there are mandatory terms which must be included in an Enterprise agreement: • Flexibility to vary the terms to meet the needs of the employer or employee. • A coverage term which explains who the agreement covers. • A consultation term requiring the employer to consult with employees regarding any major changes that are likely to have a significant effect on the employee or group of employees. • A nominal expiry date no later than four years after the day on which the agreement has been approved by the FWC. The agreement cannot include any discriminatory terms or terms that otherwise breach the Fair Work Act.
- 9. Differences between Awardsand EA Enterprise agreements • Only apply to the employees of one particular organisation. • Terms are negotiated internally. • Agreements must be approved by the Fair Work Commission. vs Modern Awards • are standardised and non-negotiable.
- 10. Next steps This presentationhas given employers an overview of the difference between Modern Awards and Enterprise Agreements. For more detailed information on employment contracts or advice on workplace relations please call Employsure on 1300 651 415.