The Fair Work System and
Modern Awards
Award modernisation
Why?
• Complicated system of pre-reform federal awards,
Notional Agreements Preserving State Awards
(NAPSAs), pay scales and other industrial
instruments – 3715 separate instruments.
• Compliance with multiple instruments could be
difficult for employers.
• Movement to national workplace relations system.
Award modernisation
How it started…
Award modernisation commenced in March 2008.
• Commencement of Transition Act
• Minister for Employment and Workplace Relations, the Hon
Julia Gillard MP, issued the award modernisation request to
the Australian Industrial Relations Commission (AIRC).
AIRC to create modern awards to replace the existing
complicated system of pre-reform awards, NAPSAs and pay
scales. Modernisation to be complete by 31 December 2009.
Award modernisation
What was achieved…
• 3715 instruments condensed to 122 modern awards.
• Process completed within timeframe set by the Minister.
• Modernisation benefited from extensive AIRC consultation:
• Published exposure drafts of each modern award for
comment
• Conducted hearings where stakeholders could
present submissions
• Considered written submissions from all interested
stakeholders.
Modern awards
Where to from here?
Pay/classification provisions will commence on 1 July
One-off review of awards at the beginning of 2012.
• Achieving modern awards objective.
• No technical problems or anomalies..
Recurrent substantive review – Fair Work Act 2009
• 4-yearly review of modern awards – first in 2014.
Modern awards objective
Modern awards provide a fair and relevant safety
net of standards, taking into account:
• Living standards and needs of the low paid
• Promote social inclusion through workforce
participation
• Equal remuneration for work of equal or comparable
value
• Easy to understand, stable and sustainable award system
Fair Work Act 2009
The Act is the legislative basis of the Fair Work system. The Act includes
the 10 National Employment Standards (NES) that apply to all employees
in the national workplace relations system.
The NES:
• Maximum weekly hours
• Flexible work requests
• Parental leave
• Annual leave
• Personal/carer’s leave
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Community service leave
Long service leave
Public holidays
Termination and redundancy
Fair Work Information
Statement
… Fair Work Act
The Act and modern awards
The Act is also the legislative basis for the ongoing
creation and variation of modern awards. It sets out
the modern awards objective, as well as:
• Fair Work Australia can make, vary and revoke
modern awards
• Terms that can and cannot be included in awards
• 4 yearly review of awards
Award variations
Modern awards can be varied
FWA has the power to vary modern awards in certain
situations. Awards can be varied upon application by
parties, or by FWA at its own initiative. Reasons for
variations:
• To resolve uncertainty or ambiguity
• To achieve the modern awards objective
• In accordance with human rights and anti-discrimination
principles.
Modern Award variations
Applying to vary
An individual or organisation can apply to FWA to
have a modern award varied.
Complete application  lodge with FWA  provide
to relevant parties.
Submissions in support of or opposition to the
application  FWA may conduct a hearing before
determining the matter.
Minimum wage objective
When setting, varying or revoking award
minimum wages & the national minimum wage
FWA must establish a maintain a safety net of fair
minimum wages, taking into account:
• Needs of the low paid
• Principle of equal remuneration
• Performance/competitiveness of the national
economy
• Social inclusion through workforce participation
Award wages variations
Award wages can be varied in accordance with
the minimum wage decision
FWA can make a determination varying award wages:
• Must take into account the national minimum wage
• Take effect 1 July
• Flow on from national minimum wage determination
Australian Disability Enterprises
State or national system?
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Many businesses were in the federal system prior to the
commencement of the Fair Work system – new national system.
Some businesses have moved from state workplace relations
systems to the national system. Transitional provisions assist with
the changes.
Non-trading corporations, unincorporated entities, partnerships or
sole traders in Western Australia continue unaffected in the state
system.
Supported Employment Services
Award 2010 (SES Award)
Commenced 1 January 2010
• Covers employers operating supported employment
services.
• Classification grades 1 – 7.
• Incorporates the use of listed approved wage assessment
tools.
• Includes overtime and penalty rates, superannuation,
hours of work, leave and public holidays.
• Includes transitional provisions to enable smooth
transition to the modern award.
SES Award continued
Variation
The award was varied on 15 March 2010. Minor variations:
 Adding work descriptors to classification grades
 Including transitional provisions in the award.
Where to access
Employers can get a copy of the award at www.fwa.gov.au
 ‘Awards and award modernisation’  ‘Find an award’
Fair Work Australia (FWA)
FWA is the new independent tribunal
Commenced on 1 July 2009. Has replaced the Australian
Industrial Relations Commission.
FWA is a modern, responsive and streamlined institution.
• Conduct hearings
• Function in an inquisitorial manner
• Hold informal conferences
• Determine matters on written submissions
… Fair Work Australia …
What FWA does
Fair Work Australia is the national workplace relations tribunal.
It is an independent body with power to carry out a range of
functions relating to:
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the safety net of minimum wages and employment conditions
enterprise bargaining
industrial action
dispute resolution
termination of employment
other workplace matters.
… Fair Work Australia
FWA replaced:
• Australian Industrial Relations Commission
• Australian Industrial Registry
• Australian Fair Pay Commission
• Workplace Authority (Agreement
assessment)
Fair Work Ombudsman (FWO)
The role of the Fair Work Ombudsman is to work with
employees, employers, contractors and the community to
promote harmonious, productive and cooperative workplaces.
• Providing education, assistance and advice on relevant
Commonwealth workplace laws
• Promoting and monitoring compliance with relevant
Commonwealth workplace laws
• Inquiring into and investigating any act or practice that may
be contrary to workplace laws.
… Fair Work Ombudsman
The Office of the Fair Work Ombudsman
replaced:
• Workplace Ombudsman
• Workplace Authority (Advisory elements,
including Infoline)
Useful contacts
• Fair Work Online – www.fairwork.gov.au or
Infoline 13 13 94
• Fair Work Ombudsman – www.fwo.gov.au
or 13 13 94
• Fair Work Australia – www.fwa.gov.au or call
1300 799 675