From 1 January 2010, sole traders, partnerships, other unincorporated entities and non-trading corporations in New South Wales, Queensland, South Australia and Tasmania join the national workplace relations system.
There are special rules for these employers and employees to help them move into the national workplace relations system including:
- State awards that covered these employers and employees before 1 January 2010 (known as Division 2B State awards) continued to apply from 1 January 2010 until 31 December 2010.
- Employers and employees who were covered by a Division 2B State award will generally be covered by a modern award from 1 January 2011.
- However in most cases, the conditions in Division 2B State awards will continue to apply until the end of the full pay period commencing before 1 February 2011 (depending on the transitional arrangements in the relevant modern award).
- When covered by Division 2B State awards, employees must receive conditions that are at least equal to the minimum entitlements in the National Employment Standards (NES) and the national minimum wage. The NES applies to all employees in the national system.
- State employment agreements (known as Division 2B State agreement) will continue to apply until terminated or replaced. Employees under Division 2B State employment agreements must also receive conditions that are at least equal to the minimum entitlements in the NES. Underpinning the pay rates in Division 2B State agreements are the base rates of pay in the relevant modern award or the national minimum wage. Non-pay rate provisions in a relevant modern award also apply to an employee covered by a collective Division 2B State agreement, however the agreement will prevail to the extent of any inconsistency.