How do the model transitional provisions apply to employees who were previously award-free but are now covered by a modern award?
Some employees who were previously award-free will be covered by a modern award from 1 January 2010. This is because modern awards cover an industry or occupation rather than particular employers and organisations.
The way that the model transitional provisions apply to these employees depends on what their entitlements were or would have been (e.g. for new employees) as at 31 December 2009.
- Where an employee had or would have had an entitlement to the Federal Minimum Wage (‘FMW’) rate, wage rates phase from the FMW rate to the wage rate in the modern award
- Otherwise, the full modern award wage rate applies from 1 January 2010
- Most employees that were previously award-free in the national system would have been entitled to the FMW rate as at 31 December 2009
- However, employees of non-constitutional corporations in NSW, QLD, SA or TAS were part of the state system in December 2009, and therefore did not have an entitlement to the FMW.