Estimated reading time: 7 minutes
As an employee in Australia, you have workplace rights that protect both your working conditions and how much you’re paid. In many industries, one of the most important protections is something called a modern award.
Modern awards set the minimum pay rates and conditions for different industries. They can be confusing, and it’s perfectly normal if you’re unsure which one applies to you. But, because they’re designed to protect your rights at work, it’s worth understanding how they work and what they offer.
In this article, we’ll break down what a modern award is, explain how it protects you as an employee, and show you how to check whether you’re getting the right pay and conditions.
Key Takeaways:
- Modern awards are legal documents that set the minimum pay rates and working conditions for different industries and job types across Australia.
- Awards work hand-in-hand with the National Employment Standards (NES) under the Fair Work Act 2009 to protect your rights as an employee.
- Many Australian employees are covered by a modern award, however there are some exceptions.
- Understanding your award is one of the best ways to protect your pay, rights, and conditions at work.
- If you think you’re underpaid or unsure about your award, you can get free help from the Fair Work Ombudsman or your union.
What Are Modern Awards?
Simply put, a modern award is a legal document that sets out the minimum pay and working conditions for people working in each industry or job type.
Think of an award as a rulebook. It makes sure employees are treated fairly and consistently by their employers, regardless of who they are or where they work. What’s more, each industry has its own tailored award that suits the specific type of work and conditions that industry requires.
For example:
- The Hospitality Industry (General) Award applies to most cafés, bars, and restaurants.
- The Clerks, Private Sector Award applies to many office and admin workers.
- The Building and Construction General On-site Award covers construction workers.
Importantly, modern awards work alongside the National Employment Standards, which apply to all employees under the Fair Work Act 2009. Together, they form a safety net that protects you and your legal rights at work.
Additional resources:
What Does A Modern Award Cover?
Your award outlines the minimum legal standards your employer must follow. In other words, these are the baseline conditions you’re entitled to, no matter what.
These standards include:
- Minimum pay rates: The base hourly or weekly rate of pay you should receive.
- Overtime and penalty rates: The extra rate of pay you receive for working late, on weekends, or through public holidays.
- Allowances: Additional money paid on top of your wage to cover things like travel, uniforms, or tools.
- Hours of work: A clear outline of your working hours, along with rostering rules; for example, minimum notice for shift changes.
- Breaks: The frequency and duration of breaks you should have throughout your day or shift.
- Leave entitlements: Any leave entitlements that go beyond the National Employment Standards.
Essentially, these rules ensure you’re not underpaid or forced to work unfair hours.
Check your pay and conditions here:
How Do You Know Which Modern Award Applies To You?
If you need to check which modern award applies to you, it’s crucial to make sure you’re looking at the correct award for your industry and job title. This way, you’ll be referencing the right pay rate and conditions.
Here’s how to find your award:
- Go to the Fair Work Commission “Find My Award” tool.
- Search by industry or job title (e.g. “hairdresser”, “sales assistant”).
- Read the coverage clause (usually Clause 4) to confirm it matches your type of work.
- Check the classification levels to see where your role fits. For example, “Level 1 Barista” or “Level 3 Tradesperson”.
If you’re still unsure which award applies to you or you think you’re being paid under the wrong award, don’t hesitate to contact the Fair Work Ombudsman on 13 13 94 for free, confidential advice.
Useful links:
Real-World Example: Toby the Barman
Let’s look at a practical example to show how modern awards work in real life:
Toby works as a barman at a busy pub in Brisbane. When he started, he was earning $35 per hour for all his shifts, including Friday and Saturday nights. After chatting with a friend who works at a different bar, Toby learned that under the hospitality award he should be getting penalty rates for weekend work.
He checked the Hospitality Industry (General) Award and found he was classified as a Level 2 Food and Beverage Attendant.
According to the award, he should have been receiving:
- His base hourly rate during weekday shifts.
- 1.5 of his base rate (time-and-a-half) for Saturday shifts.
- 1.75 of his base rate for Sunday shifts.
- 2.25 of his base rate for public holidays.
Toby worked out he’d been underpaid by a few thousand dollars over the past year. He politely raised the issue with his employer, showing them the award rates. His employer acknowledged the mistake and not only corrected his future pay but also back paid him for all the penalty rates he’d missed.
This example shows exactly why understanding your award matters. It could mean the difference between being paid fairly and missing out on money you’re legally entitled to.
Why Modern Awards Matter For Employees
Modern awards are your safety net at work. They ensure you’re paid fairly, treated properly, and not taken advantage of. Whether you’re full-time, casual, part-time, or new to your job, your award sets the minimum standards your employer must meet.
Being familiar with your modern award helps you protect your rights at work.
Here’s why that matters:
- You know if you’re being paid correctly: Your award sets out the minimum rate of pay and extra pay for overtime or weekend work. When you know what those rates are, you can confidently dispute any rate of pay that falls below the minimum. You can also use your award to calculate what you’re owed.
- You get fair conditions: Awards regulate hours, breaks, allowances, and other conditions for your role, so you’re treated fairly no matter who you work for. Additionally, if your employer doesn’t honour the conditions set out in your award, you have legal grounds to dispute it.
- You can resolve pay or workplace issues confidently: When you know your award, you can check your entitlements and raise issues with your employer or the Fair Work Ombudsman with confidence.
More information about modern awards:
FAQs About Modern Awards
What if my employer says I’m “award-free”?
While some employees aren’t covered by a specific award (or enterprise agreement – see below), it’s not a free-for-all. You’re still protected by the National Employment Standards.
- Check the Law Handbook SA – Modern Awards for more information on award-free employees.
What if I have an enterprise agreement?
If your workplace has an enterprise agreement, it usually replaces the award. However, it must provide equal or better conditions than the award. If it doesn’t, the award still applies as a safety net.
- You can learn more about Enterprise Agreements here: Fair Work – Enterprise Agreements.
Do awards change over time?
Yes, they do. Pay rates and rules can change every year (often in July). Make sure you check the Fair Work Commission – Pay and Conditions Database for updates.
What do I do if I think I’m being underpaid?
If you suspect you’re being underpaid, you should act quickly so you can resolve the situation as soon as possible:
- Check your award using the Fair Work Commission “Find My Award” tool.
- Compare your current pay to the minimum rate listed.
- Talk to your employer, it might just be a simple mistake.
- If it’s not resolved, contact the Fair Work Ombudsman for free help or to make a complaint
- Website: www.fairwork.gov.au
- Phone: 13 13 94
Note: You can also get confidential support from your union or a community legal centre.
Final Word:
Understanding your modern award is one of the most powerful ways to protect yourself at work. So, take a few minutes to find your award, check your pay rates, and make sure you’re getting everything you’re entitled to. And, share it with a friend or colleague who might also need help understanding their workplace rights.
