On 1 January 2010, every state, except Victoria and Western Australia, referred its industrial relations powers to the Commonwealth. This meant that sole traders, partnerships, and other unincorporated entities (known as non-constitutional corporations) joined the national workplace relations system. In Victoria, all employers have been a part of the national workplace relations system since 1996.
The legislation allowed employers and employees who were covered by state awards to continue to apply the pay and conditions under these awards until 31 December 2010. State awards became known as Division 2B State awards.
From 1 January 2010, employers who are constitutional corporations (generally Pty Ltd or Ltd entities) in New South Wales, Queensland, South Australia and Tasmania were already in the national system, and have been covered by modern awards since then. Previously they may have been covered by a Notional Agreement Preserving a State Award (NAPSA) or other type of pre-reform award.
All employers in the national system are required to meet the conditions in the National Employment Standards and the national minimum wage order.
Transitional arrangements for Division 2B State awards
From 1 January 2011, Division 2B State awards terminate and employers and employees are covered by the relevant modern award. However, most modern awards provide that all the terms of Division 2B State awards continue to apply until 31 January 2011.
From 1 February 2011, an employer who was covered by a Division 2B State award, must comply with all of the terms and conditions contained in their relevant modern award, and any transitional arrangements that apply.
Transitional arrangements in most modern awards for Division 2B State award employers provide that from 1 February 2011, they must pay at least the same wage rates, penalties and loadings as national system employers who are transitioning from the equivalent NAPSA.
In general, all employers in the national system will be paying the same minimum rates of pay for the same occupations or industries no matter what time they entered the modern award system.
There are some exceptions and special transitional arrangements that apply in certain situations. Please check the What do I need to do? and Other Transitional Provisions sections for further information.