Modern Awards - are you prepared?

January 2010

On 1 January the Federal Government's new modern awards commenced - are you prepared for this fundamental change to the IR system?

In preparation, employers should consider the following:

  • Ascertain which modern award(s) will apply to your business. These can be found on the Fair Work Australia website www.fwa.gov.au - note that many employees that were traditionally considered non-award may be covered by a modern award. One example is the Miscellaneous Award.
  • Review the terms of the applicable modern awards and how they apply to your business and implement internal systems and procedures to ensure compliance with those terms.
  • If there are certain terms of a modern award that do not suit your business, for example, you would like to alter the hours of work that would otherwise incur penalties, consider whether an individual flexibility agreement with an employee could be tailored to meet the needs of the business. (see clause 7 of most of awards for details of agreement flexibility).  Note that both the employee and the employer can terminate an individual flexibility agreement by giving the other party 28 days notice.
  • If the business requires more flexible working arrangements that cannot be achieved by the use of individual flexibility agreements, consideration should be given to implementing an enterprise agreement tailored to the businesses' needs.
  • Businesses that are covered by a workplace agreement (including certified agreement, collective agreement; enterprise agreement; ITEA and AWAS) will need to ensure that the wage rates in those agreements are no less than the minimum wage under the corresponding modern award.
  • Transitional arrangements are in place for most awards providing for minimum wages, loadings, weekend and public holiday penalties, evening another penalty rates to be introduced in 20 per cent increments over four years commencing on 1 July 2010. Check if the transitional arrangements are included in the awards applicable to the business.

Further information

For assistance preparing for the changes contact Chamber of Commerce & Industry Queensland on 1300 405 711. Our workplace relations experts are also available for a one-on-one consultation to provide advice specific to your business.

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