One of the key changes to occur under the new Fair Work system is the modernisation of awards operating in the Commonwealth workplace relations system. The Australian Industrial Relations Commission (AIRC) is currently consolidating the thousands of existing awards into industry or occupation-based categories to reduce the confusion surrounding proper minimum employment entitlements.
From 1 January 2010 onwards, most industries are subject to a modern award.
Who is affected by modern awards?
Modern awards will cover all employers and employees in the national workplace relations system.
Modern awards are industry or occupation-based, and will apply to employers and employees who perform work covered by the award.
However, managers or higher income employees may not be covered by a modern award even if one applies to the industry in which they work.
What do these changes mean for me?
If you are an employer or employee who was operating under an award-based transitional instrument (eg. a federal award or NAPSA) as at 31 December 2009, there is a good chance you are now covered by a modern award.
Modern awards commenced on 1 January 2010 and many people’s minimum entitlements have changed. You will need to determine whether the work you do is now covered by a modern award and when it takes effect.
You will also need to check whether any terms and conditions of employment have changed, and if there are any transitional arrangements that may aff ect these changes.
For further assistance please contact the Fair Work Infoline on 13 13 94 or chat online with our 
Live help advisor.
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Are there any transitional arrangements?
While modern awards commenced operation on 1 January 2010, the AIRC has allowed for transitional arrangements over a five-year period to assist affected employers and employees in the move to the modern award system.
Transitional arrangements in most modern awards mean that rates of pay and certain other conditions do not come into force until 1 July 2010 and may be phased in over time. However, not all modern awards contain these transitional arrangements. Employers should check their modern award to determine if these arrangements apply.
If a modern award contains transitional arrangments, any increases or decreases in wages, loadings and penalty rates may be phased in from 1 July 2010.
This includes:
- minimum wages
- casual and part-time loadings
- Saturday, Sunday and public holiday penalty rates
- evening and other penalty rates
- shift allowances.
This period provides time for the parties affected by a modern award to make the required changes. During the period between 1 January 2010 and 1 July 2010, the pre-modern award pay-related entitlements remain in effect. That means entitlements contained within a pre-modern award (eg. a federal award, or NAPSA) regarding any of the above continue to operate.
From 1 July 2010, if a modern award results in an increase or decrease in wages or penalty rates, some modern awards will allow for the incremental phasing-in of changes to minimum wages or penalty rates over a five-year period.
However, all other entitlements under modern awards will apply from 1 January 2010.
All employers and employees should consult their relevant modern award for specific transitional arrangements, including state-based differences.
If you require assistance, contact the Fair Work Infoline or, alternatively, speak to your trade union or employer organisation for advice.
Where can I find modern awards?
Modern awards can be found at:
Australian Industrial Relations Commission
What do I need to do in the future?
All employers and employees are responsible for keeping up-to-date with the modern awards, any associated transitional arrangements, and future changes, for example, to the annual minimum wage.
Keep an eye on this site for updates.
Where can I get further information?
For further information on your rights and obligations under Commonwealth workplace laws, please contact the Fair Work Ombudsman on 13 13 94, or go to our Modern awards page.
Alternatively, for information on the award modernisation process, contact Fair Work Australia on 1300 799 675.
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For further information or assistance you can contact us here.
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