The national workplace relations system covers the majority of businesses in Australia and applies nationally. This means that employers and employees in the national workplace relations system have the same rights and obligations, regardless of the state they work in.

The national workplace relations system has a number of features that employers and employees must make sure they comply with, including:

• a set of 10 minimum National Employment Standards (NES)
• modern awards that apply nationally for specific industries and occupations
• a national minimum wage order (where it applies)
• protection from unfair dismissal.

Modern awards, together with the NES and the national minimum wage order, make up a new safety net for employees covered by the national workplace relations system. Only certain entitlements in the NES apply to casual employees.

What are you covered by?

From 1 January 2010, if you fall under the national workplace relations system, you will be covered by the NES. You may also be covered by a modern award, a pre-modern award or an agreement, or some other type of instrument (i.e. a state award or state employment agreement for employees moving into the national workplace relations system.

Agreements

Agreements set out the conditions of employment for a particular employee or group of employees and their employer. Agreements differ from contracts of employment or common law agreements, in that they have been lodged with or approved by a relevant authority.

Employers and employees in the national system may have the following types of agreements:

• enterprise agreements - these agreements can be made from 1 July 2009 and will set out conditions of employment for a group of employees at one or more workplaces.
• agreement based transitional instruments – these are agreements made before 1 January 2010, between an employer and either an individual employee or a group of employees.
• State employment agreements - these are agreements made in NSW, SA, QLD or TAS under the applicable State system prior to 1 January 2010.

Modern awards do not apply to an employer and employee while they have an agreement in place.

However the base rate of pay under an agreement must not be less than the base rate of pay under the relevant modern award. If there is no modern award that covers the employees the agreement rate must be at least equal to the national minimum wage. Terms in a modern award about outworker conditions will also apply to parties covered by an agreement.

Agreements also operate alongside the NES on a ‘no detriment’ basis. This means that,employees must receive at least the minimum conditions in the NES (to the extent that they apply), along with the entitlements in their agreement (provided that they are at least as beneficial as the corresponding NES entitlement(s)).

If the agreement is terminated then the employee’s minimum entitlements will come from the modern award that covers the work that they perform. If there is no modern award, then the employee will be covered by their relevant pre-modern award or the national minimum wage.

Find out what you're covered by. Call the Fair Work Infoline on 13 13 94 or chat online with our  Live help advisor