About modern awards

On this page:

• Commencement of modern awards
• Who do modern awards cover?
• Transitional arrangements
• Australian Pay & Classification Scales—Pay scales

Commencement of modern awards

The first 122 modern awards commenced on 1 January 2010 coinciding with the introduction of the new national workplace relations system.

Together with 10 minimum National Employment Standards (NES) and the national minimum wage order, the modern awards make up a safety net for employees in the new system.

While modern awards commenced on 1 January 2010, many contain transitional arrangements which phase-in changes in wages, loadings and penalty rates over a five-year period.

The National Employment Standards are contained in the Fair Work Act 2009 (ss.59–131 of Chapter 2, Part 2-2). They are minimum standards applying to the employment of employees which cannot be displaced, even if an enterprise agreement includes terms that have the same (or substantially the same) effect as provisions of the NES.

Who do modern awards cover?

The first modern awards were created as part of an extensive review conducted by Fair Work Australia's predecessor, the Australian Industrial Relations Commission (AIRC), following a formal Australian Government request.

They apply to national system employees in a particular industry or occupation. In general, the employees of constitutional corporations are covered by the national workplace relations system. In addition, those covered include:

• in Victoria, the Australian Capital Territory and the Northern Territory—all other employment
• in New South Wales, Queensland and South Australia—all other private sector employment (from 1 January 2010), and
• in Tasmania—all other private sector and local government employment (from 1 January 2010).

Transitional arrangements

Many modern awards contain transitional arrangements which specify when particular parts of a modern award come into effect. Some transitional arrangements appear in clauses in the main part of the award, some may also appear in a schedule.

Transitional arrangements may deal with:

• minimum wages and piecework rates
• casual or part-time loadings
• Saturday, Sunday, public holiday, evening or other penalties
• shift allowances/penalties.

The making of a modern award (and the operation of any transitional arrangements within a modern award) is not intended to result in a reduction in the take-home pay of employees covered by such award.

If you are an employee or outworker and believe your take-home pay has suffered as a result of the introduction of a modern award, you may be able to seek a 'take-home pay order' to remedy the situation. Such an order will preserve your existing take-home pay while you remain in the same job.

Australian Pay & Classification Scales—Pay scales

The minimum rates of pay contained in Australian Pay and Classification Scales (pay scales) are replaced by the minimum wages in modern awards for most employees in the national workplace relations system.

Many modern awards contain transitional arrangements that will phase-in minimum wages (and other conditions) from the first full pay period on or after 1 July 2010 over a five-year period. Therefore, the minimum rates of pay contained in some pay scales may continue to apply until 1 July 2010.