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How does this affect agreements?

Base rates of pay in a modern award override lesser entitlements in an agreement or contract of employment at all times, including agreements and contracts that were made before 1 January 2010.

However, the penalty rates and allowances in the modern award do not apply to agreement-covered employees, unless the agreement is read in conjunction with the modern award. Where both an agreement-based transitional instrument and the modern award apply, the agreement prevails over the modern award to the extent of any inconsistency.

Penalty rates and allowances in a modern award will override a contract of employment.

Where there is no relevant modern award, pay rates in the agreement need to be at least in line with the applicable pre-modern award, or where none exists, the national minimum wage.

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Page last updated: 1 July 2011