Glossary

an employer takes adverse action against an employee if the employee is dismissed or discriminated against
an employee takes adverse action against their employer if they stop working.

Allowances

Additional payments made to some employees for doing certain tasks, working in certain locations, using a special skill, or for expenses they incur doing their job.

Apprentice

An employee under a 'training arrangement'.

A 'training arrangement' is a combination of work and training that's subject to a training agreement or a training contract between the employee and employer that takes effect under a state or territory law relating to training employees.

Australian Fair Pay Commission (Fair Pay Commission)

The was responsible for adjusting federal minimum wages and pay scales. From 1 August 2009, the Minimum Wage Panel of Fair Work Australia will be responsible for setting and adjusting minimum wages.

Australian Fair Pay and Conditions Standard (the Standard)

The Australian Fair Pay and Conditions Standard - known as 'the Standard' - sets out 5 basic workplace conditions. They relate to:

basic rates of pay and casual loadings
hours of work
annual leave
personal / carer's and compassionate leave
unpaid parental leave.

The Standard will be replaced by 10 minimum employee entitlements (National Employment Standards) from 1 January 2010.

Australian Industrial Relations Commission (AIRC)

The External site link Australian Industrial Relations Commission (AIRC) is an independent, national tribunal dealing with employment issues. It will complete matters and processes commenced before 1 July 2009, including the award modernisation process, up until 31 December 2009.

Australian Pay and Classification Scales (pay scales)

Pay scales are part of the Australian Fair Pay and Conditions Standard.

Each pay scale includes basic rates of pay for employees covered by it.

Australian Workplace Agreement (AWA)

An Australian Workplace Agreement (AWA) is a written agreement between an employer and an employee that sets out terms and conditions of employment.

AWAs could not be made after 28 March 2008. AWAs made before 28 March 2008 continue to operate until terminated or replaced.

AWA

Australian Workplace Agreement

Award

An award covers particular employers and sets out minimum conditions of employment for some or all of their employees. An award can be a:

transitional award
pre-reform award.

Awards - 170MX

A 'section 170MX Award' is an award made by the Australian Industrial Relations Commission (AIRC) under section 170MX (3) of the Workplace Relations Act 1996 before 27 March 2006.

These awards came about to deal with unsettled issues (which were unlikely to get settled within a reasonable time) between the parties negotiating a certified agreement during a bargaining period.

These awards:

could only be made after the Australian Industrial Relations Commission (AIRC) terminated the bargaining period on certain grounds
attempted to help the parties reach agreement or settle the matter.

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Basic periodic rate of pay

A basic periodic rate of pay is a rate of pay for a period worked. It doesn't include separate entitlements, such as incentive-based payments and bonuses, loadings, or monetary allowances.

In a pay scale, the basic periodic rate must be an hourly rate of pay.

Basic piece rate of pay

A piece rate of pay is a rate of pay not calculated by hours, but by an output or task that can be measured.

The Better Off Overall Test (BOOT)

A test to be used from 1 January 2010 to decide whether an enterprise agreement has better terms and conditions than a modern award. Except in limited circumstances, an enterprise agreement will not be approved by Fair Work Australia unless it passes the Better Off Overall Test.

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Casual employees

A casual is generally an employee hired on an hourly or daily basis and can include an employee engaged by the employer for short-term or irregular work.

Casuals are often paid a loading on top of their basic rate (a 'casual loading').

Casual loading

The casual loading is the amount paid on top of the basic rate of pay to casual employees. It's to compensate employees for not getting certain entitlements, such as paid annual leave.

Classification

A classification of employees classifies / categorises employees into types. A classification or category of employees can be described by:

the nature of the work performed by the employee
the employee's skills and qualifications
the employee's level of responsibility
whether the employee is a junior employee
whether the employee has a disability
whether training arrangements apply to the employee.

Classifications may be included in a pay scale.

Coercion

Coercion means forcing or compelling someone to do something against their will, for example through fear, intimidation and / or threats.

Collective agreement

A collective agreement is an agreement made before the commencement of the Fair Work Act 2009 about terms and conditions of employment that covers a group of employees.

A greenfields agreement is a collective agreement that relates to a genuine new enterprise made before any employees who will be covered by it are employed.

ComLaw

ComLaw offers people online access to Commonwealth laws - Acts, Bills, Legislative Instruments, the Constitution and more.

It's a database of law, letting people search for laws relevant to their needs, read them online or download them.

Conciliation

Conciliation is a method used by Fair Work Australia (FWA) to help employers and employees settle disputes. FWA doesn't impose a decision on the employer and employee in conciliation.

Constitutional corporation

To be a constitutional corporation, an employer must be either:

a foreign corporation (a corporation incorporated outside Australia that does business in Australia)
a financial corporation formed in Australia
a trading corporation formed in Australia.

Corporation

A corporation is a legal entity, separate from the individuals who make it up, that can sue, be sued, own property and enter into contracts.

Any proprietary limited company (Pty Ltd) or publicly listed company (Limited, Ltd) is a corporation.

Contract of employment

The contract that exists between an employer and employee that's enforceable by law. A contract of employment will contain the terms and conditions that an employee agrees to work under. The terms of the contract may be written, oral and in some cases, implied.

Coverage provisions

These are the provisions in a pay scale that determine who's covered by the pay scale.

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D-F

Deductions

Where money is taken out of an employee's pay.

Generally speaking, an employer is allowed to make a deduction from an employee's pay if:

the employee agreed in writing and the deduction is principally for the employee's benefit, or
the employee authorised the deduction in accordance with an industrial agreement; or
the deduction is authorised by or under an award or an order of Fair Work Australia; or
the deduction is authorised by or under a law or an order of a court.

Generally speaking, an employer cannot make a deduction from an employee's pay if:

the deduction is for the benefit of the employer and is unreasonable, or
if the employee is under 18 years of age and the employee's guardian or parent hasn't authorised the deduction in writing.

Defined benefit fund

This is a superannuation fund where the benefit is determined by the rules of the fund (benefits may be based on salary before someone retires, length of service and so on).

This is different to an accumulation fund (the most common type of fund), which invests contributions and provides benefits based on the return on those investments.

Demarcation dispute

A dispute about who should represent workers between different unions.

A dispute between employers and employees about the functions or classes of employees.

Designated outworker terms

Particular terms of an industrial instrument that relate to outworkers in the textile, clothing or footwear industry including terms that regulate minimum work conditions of contract outworkers or impose conditions in relation to giving out work that is normally performed by outworkers.

Disability Support Pension

This is a payment for people whose physical, intellectual or psychiatric impairment prevents them from working, or for people who are permanently blind.

People who can get the Disability Support Pension are aged 16 or over and under Age Pension age, and are:

assessed as not being able to work or be retrained for work of at least 15 hours per week within 2 years because of illness, injury or disability, or
permanently blind, or
participating in the Supported Wage System (SWS).

There are also requirements relating to Australian residency.

Discrimination

When someone is not treated fairly or given the same opportunities because of personal characteristics or attributes.

Under national workplace relations laws, an employee or prospective employee cannot be discriminated against on the basis of race, colour, sex, sexual preference, age, physical or mental disability, marital status, family or carer's responsibilities, pregnancy, religion, political opinion, national extraction or social origin.

There are certain exceptions, eg. discrimination based on the inherent requirements of a job.

Discriminatory term

A term of an enterprise agreement that discriminates against an employee on the basis of race, colour, sex, sexual preference, age, physical or mental disability, marital status, family or carer's responsibilities, pregnancy, religion, political opinion, national extraction or social origin.

There are some exceptions, eg. a term that provides wages for junior employees or employees with a disability.

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Employee with a disability

The Fair Work Act 2009 defines an 'employee with a disability' to mean an employee who's qualified for a disability support pension as set out in Section 94 or 95 of the Social Security Act 1991, or who would qualify if they met the residency requirements of these sections.

Enterprise agreements

An industrial instrument that's either a single-enterprise agreement or a multi-enterprise agreement.

Single-enterprise agreements are made between a single employer and a group of employees. They can involve more than 1 employer in limited cases (eg. where 2 or more employers are engaged in a joint venture).

Multi-enterprise agreements are made between 2 or more employers and groups of their employees.

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Fair Pay Commission

Otherwise known as Austrlian Fair Pay Commission (AFPC).

Fair Work Act 2009

Commonwealth workplace relations law which will put in place a workplace relations system built on:

a fair and comprehensive safety net of minimum employment conditions
a system that has, at its heart, bargaining in good faith at the enterprise level
protections from unfair dismissal
protection for the low-paid
a balance between work and family life
the right to be represented in the workplace.

Note: Parts of the Fair Work Act 2009 start on 1 July 2009 and other parts start on 1 January 2010.

Federal Minimum Wage (otherwise known as 'FMW')

The standard Federal Minimum Wage is $14.31 per hour / $543.78 per week (for an employee working a 38-hour week).

This Federal Minimum Wage is paid for the hours an employee works.

There's also a Special Federal Minimum Wage for employees with a disability.

Financial corporation

A financial corporation undertakes financial activities that form a significant or substantial portion of its overall activities.

Financial activities include: borrowing, lending, banking, insurance, and management and advisory services in relation to monetary and financial matters.

FOA

Freedom of association

FOI

Freedom of information

FWA

Fair Work Australia

FW Act

Fair Work Act 2009 (ComLaw website)

FWO

Office of the Fair Work Ombudsman

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G-I

GEERS

General Employee Entitlements and Redundancy Scheme.

A government scheme helping employees who lose their job due to liquidation or bankruptcy of their employer and are owed money.

Genuine redundancy

A person's dismissal is a case of genuine redundancy if:

their employer no longer requires the person's job to be done by anyone because of changes in the operational requirements of the employer's enterprise
the employer has met any obligation to consult about the redundancy.

A person's dismissal is not a case of genuine redundancy if it would have been reasonable for the person to be redeployed.

Good faith bargaining

A concept under the Fair Work Act requiring parties to act in good faith when negotiating an enterprise agreement.

Gross pay

The total amount an employee has earned before income tax and other deductions are taken out.

Guaranteed hours

Generally, if the employee is engaged to work specified hours per week, their 'guaranteed hours' are:

those specified hours
plus additional hours the employee is required or requested to work
minus certain hours where the employee is absent (eg. on unpaid leave or unauthorised absences).

Full-time: If the employee is full-time, and their hours aren't specified in their terms or conditions of employment (eg. in their workplace agreement or contract of employment), the employee's specified hours are taken to be 38.

Not full-time: If the employee doesn't have specified hours (eg. a casual employee), their guaranteed hours are the hours they're required or requested to work, and do work, minus certain hours where the employer cannot pay them (eg. for industrial action).

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Immediate family

Members of an employee's immediate family for various purposes under the Fair Work Act 2009 include:

a spouse, de facto partner, child, parent, grandparent, grandchild or sibling of the employee, or
a child, parent, grandparent, grandchild or sibling of a spouse or de facto partner of the employee.

Income tax

A government tax charged on what a person earns. The amount of income tax paid depends on how much is earned and other entitlements and exemptions.

Incorporated association

An incorporated association is a legal entity created under legislation.

Independent contractor

A person or business engaged under a contract for services.

Individual transitional employment agreement (ITEAs)

An individual transitional employment agreement (ITEA) is a written agreement between an individual employee and an employer, which sets out terms and conditions of employment. ITEAs undergo the no-disadvantage test when lodged with the Workplace Authority.

ITEAs can be made up to 31 December 2009. ITEAs have a nominal expiry date of 31 December 2009 (or earlier if specified in the agreement).

Industrial action

Industrial action by employees includes:

performing their work in a different way from usual so as to restrict, limit or delay their performance of their work
failing or refusing to attend work or perform any work at all
observing a ban, limitation or restriction on performing their work or on accepting an offer of work.

Industrial action by employers includes locking employees out of their employment.

Industrial instrument

An industrial instrument sets out minimum conditions of employment for specific employees. Common instrument types include awards and agreements.

Industrial instruments:

are made under or recognised by a workplace relations law
concern the relationship between an employer and employee(s).

Injunction

An injunction is a court order that requires someone to do / stop doing a specific act.

Instrument code

An instrument code is allocated to an industrial instrument to help people identify the industrial instrument. The instrument types and codes are:

pre-reform award: AP
transitional federal award: AT
federal award (prior to 27 March 2006): AW
pre-reform federal collective agreement: AG
preserved state agreement: AS
notional agreement preserving state awards [NAPSA]: AN.

Note: There are NAPSA [AN] code numbers for each state:

[AN 120 = NSW]
[AN 140+ = Qld]
[AN 150+ = SA]
[AN 160+ - WA]
[AN 170+- Tas].

ITEAs

Individual transitional employment agreements

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J-L

Junior employee

A junior employee under the Fair Work Act 2009 is an employee under 21 years of age. An industrial instrument might contain a different definition for a junior employee.

Loadings

An additional payment made above an employee's base rate of pay, usually for doing something out of the ordinary in their job, such as working overtime or shift work.

Long-service leave

This is a leave type that's generally available to employees after they've spent a long period of time with a single employer. For example, they've worked 10 years continuous service for the same employer.

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M-O

Minimum wage

The lowest amount which can legally be paid to an employee under the law.

NAPSA

Notional agreement preserving state awards

Notional agreement preserving state awards (NAPSA)

A notional agreement preserving state awards (otherwise known as NAPSA) is a federal instrument that preserves:

the terms and conditions of state awards, and / or
certain terms and conditions of employment from state or territory industrial laws

that applied to employees of a constitutional corporation before 27 March 2006.

Nominal expiry date

The 'nominal expiry date' in an agreement is the expiry date in name only. This means an agreement continues to exist and apply beyond a nominal expiry date.

Once a nominal expiry date has passed, rights and obligations for terminating / replacing an agreement are different. It's not possible to replace an enterprise agreement with another enterprise agreement before the nominal expiry date has passed without terminating the original agreement.

An employer, employee or union can apply to Fair Work Australia to terminate an enterprise agreement after the nominal expiry date has passed. ITEAs, AWAs and collective agreements can be terminated in a similar way.

Nominal hours

Nominal hours are calculated from the scheduled hours an employee works each week. The nominal hours worked determine some leave entitlements under the Australian Fair Pay and Conditions Standard.

OH&S / OHS

Occupational health and safety

Outworker

An outworker is an employee (or a contractor in the textile, clothing or footware industry) who works at residential premises, such as their own home, or other premises that are not regarded as business premises.

Overtime

Generally, hours worked by an employee over their rostered or scheduled hours. Overtime work may be paid at a higher rate in accordance with the terms of an award or agreement.

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P-R

Pattern bargaining

Pattern bargaining is where a bargaining representative is involved in making 2 or more enterprise agreements (that apply to 2 or more employers) and tries to include the same entitlements in all agreements.

It's not pattern bargaining if the bargaining representative is genuinely trying to reach an agreement.

Partnership

A partnership is the relationship created when 2 or more people go into business together.

This relationship is generally regulated by state or territory legislation and isn't usually incorporated.

When a partnership isn't incorporated, the employees at the partnership's business may be employed directly by 1 of the individual partners, or by a separate 'service' company.

Part-time employee

An employee who works less hours than a full-time employee. Part-time employees generally receive the same entitlements and benefits as full-timers, but on a proportional basis.

Pay scale

A pay scale sets the minimum pay for an employee covered by the pay scale.

Pay scales provide employees who are covered by them with a:

guaranteed basic rate of pay for each of the employee's 'guaranteed hours' or a guaranteed basic piece rate of pay
generally, a guaranteed basic casual loading.

Pay slip

A record of pay employers must provide employees each time they're paid.

The pay slip must contain information, including

the name of the employer
the name of the employee
the date when the payment was made to the employee
the amount of money paid before tax (gross pay)
the amount deducted for tax
the amount paid after tax (net pay)
superannuation payment details.

Penalty rate

A higher rate of pay for work done outside usual working hours, such as late at night or on public holidays.

Pre-reform award

A pre-reform award is a federal award made before 27 March 2006 that covers constitutional corporations.

Pre-reform certified agreement

This is a federal agreement made before 27 March 2006 and certified by the AIRC.

This agreement will stop operating:

if it's terminated
if it's replaced by an enterprise agreement.

Preserved entitlement

If a provision of a state or territory industrial law determined a preserved entitlement of an employee before 27 March 2006, then that provision became a term of the NAPSA or PSA (which came into operation on that day).

A 'preserved entitlement' for these purposes is an entitlement to:

annual leave and annual leave loadings
parental leave
personal / carer's leave
leave relating to bereavement
ceremonial leave
notice of termination
redundancy pay
loadings for working overtime or shift work
penalty rates (including those for public holidays)
rest breaks.

Preserved state agreement (PSA)

A preserved state agreement (PSA) is a federal agreement that retains the terms and conditions of:

state employment agreements
state awards
certain state or territory legislation

that applied to the employees of a constitutional corporation before 27 March 2006.

Pro-rata

Pro-rata is a proportion of a whole entitlement.

'Protected' industrial action

Protected industrial action is industrial action that's permitted by national workplace relations laws.

There are certain steps that must be followed for industrial action to be protected. For action started by employees, this includes applying to Fair Work Australia for a protected action ballot order.

Protected industrial action can only happen when the relevant parties are negotiating a proposed single-enterprise agreement that's not a greenfields agreement. Protected industrial action cannot happen unless an existing enterprise agreement has passed its nominal expiry date.

For a protected action ballot of employees, more than half of the employees eligible to vote must do so and more than half of the valid votes must approve the industrial action for it to be protected.

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Reasonable additional hours

This term is used in connection with the Australian Fair Pay and Conditions Standard guarantee that an employee can't be called on to work more than 38 hour hours per week (or an average of 38) plus 'reasonable additional hours'.

All relevant factors have to be taken into account in determining whether additional hours are reasonable including:

any risk to the employee's health and safety
the employee's personal circumstances
the operational requirements of the workplace
any notice given of the requirement or request to work additional hours.

Redundancy

Redundancy happens when an employer no longer requires a particular job to be done by anyone. The job (rather than the employee) becomes redundant. This can be due to things such as business restructures and technological change, which replaces usual work practices.

Respondent

A term used to describe an employer or organisation subject to some awards.

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S-U

School-based apprentice

An apprentice under a school-based training arrangement.

School-based trainee

An employee (other than an apprentice) under a school-based training arrangement.

Seasonal employee

An employee who works for the duration of a specified season (eg. fruit picker).

Shift worker

For the purposes of determining annual leave entitlements under the Australian Fair Pay and Conditions Standard, a shift worker is an employee who:

is employed in a business that rosters 24/7 (around-the-clock) shifts
is regularly rostered to work these shifts
regularly works on Sundays and public holidays.

Shut down

Shut down is when an employer shuts down the business or any part of the business during specific times of year, such as between Christmas and New Year's.

Sick leave

Paid leave for employees who can't attend work because they're sick or injured.

Sole trader

An individual who runs their own business on their own account, rather than through a partnership or company. The sole trader usually employs the staff at the business.

Special Federal Minimum Wage (FMW)

The Special Federal Minimum Wage (also known as the 'Special FMW') applies to employees with a disability.

The Special FMW doesn't apply to employees with a disability who are covered by a pay scale (pay scales may contain special provisions for employees with a disability).

Summarily dismissed

Summarily dismissed means being dismissed without delay or formality (ie. without notice).

Generally, the Fair Work Act 2009 provides that notice must be provided, but it's not required when employment is terminated for serious misconduct.

Whether there has been serious misconduct will always depend on the facts. Theft or assault are examples of matters likely to be serious misconduct.

Supported Wage System (SWS)

The Supported Wage System (SWS) is a productivity-based wage assessment for an employee with a disability.

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Time and wage records

The records an employer must keep under workplace laws relating to the employment of each employee.

Trading corporation

A corporation with trading activities that form a 'significant' or 'substantial' proportion of its overall activities.

Trading activities are, for example, buying, selling, exchanging or bartering goods and services or being engaged in the business of commerce.

Trainee

An employee who's under a training arrangement.

A 'training arrangement' is a combination of work and training that's subject to a training agreement or a training contract between the employee and employer. It must take effect under a state or territory law relating to training employees.

Training arrangement

A combination of work and training subject to a training agreement or a training contract between the employee and employer. It must take effect under a state or territory law relating to training employees.

Transitional award (AT)

A transitional award is a federal award created before 27 March 2006. It applies to employers who were covered by a federal award before that date, but who are not constitutional corporations.

Unfair dismissal

A dismissal that was harsh, unjust or unreasonable.

Union (trade union)

An organisation of employees.

Unlawful termination

Unlawful termination is when an employer dismisses an employee for an unlawful reason (such as their age, sexual preference or union membership) or in breach of the law.

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Workplace Ombudsman

The Workplace Ombudsman was responsible for compliance with national workplace relations law until 30 June 2009. Its functions regarding conduct that occurred before that date are now performed by the Fair Work Ombudsman.

Workplace Authority

The External site link Workplace Authority won't exist after 31 January 2010. Up to this point, the Authority will assess collective agreements made before 1 July 2009 against the no-disadvantage test.

It will continue to accept lodgement of ITEAs until 31 December 2009 and assess them against the no-disadvantage test.

Workplace determination

A workplace determination is a:

low-paid workplace determination, or
an industrial action related workplace determination, or
a bargaining-related workplace determination.

Work trial

When an employer asks an employee to work for a short period of time to assess whether they are suitable for a job. An employee must be paid for any work trial performed.

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Glossary

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A-C

ABCC

Adverse action

Allowances

Apprentice

Australian Fair Pay Commission (Fair Pay Commission)

Australian Fair Pay and Conditions Standard (the Standard)

Australian Industrial Relations Commission (AIRC)

Australian Pay and Classification Scales (pay scales)

Australian Workplace Agreement (AWA)

AWA

Award

Awards - 170MX

Basic periodic rate of pay

Basic piece rate of pay

The Better Off Overall Test (BOOT)

Casual employees

Casual loading

Classification

Coercion

Collective agreement

ComLaw

Conciliation

Constitutional corporation

Corporation

Contract of employment

Coverage provisions

D-F

Deductions

Defined benefit fund

Demarcation dispute

Designated outworker terms

Disability Support Pension

Discrimination

Discriminatory term

Employee with a disability

Enterprise agreements

Fair Pay Commission

Fair Work Act 2009

Federal Minimum Wage (otherwise known as 'FMW')

Financial corporation

FOA

FOI

FWA

FW Act

FWO

G-I

GEERS

Genuine redundancy

Good faith bargaining

Gross pay

Guaranteed hours

Immediate family

Income tax

Incorporated association

Independent contractor

Individual transitional employment agreement (ITEAs)

Industrial action

Industrial instrument

Injunction

Instrument code

ITEAs

J-L

Junior employee

Loadings

Long-service leave

M-O

Minimum wage