Fair Work and NES: What You Need to Know
17 Aug 2010 | 3 min
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Since early 2010, business have been covered by the new Fair Work System which was introduced with the key aim of providing equal pay and working conditions for employers and employees across Australia in different industries and occupations. However, despite this aim, many employers have been struggling to adapt to its requirements and keep abreast of important changes. Are you unsure of whether your business is covered by national workplace relations? What are Modern Awards and are you covered by one? And what are these National Employment Standards everyone keeps talking about?
Companies which are covered by the national workplace relations system are covered by the National Employment Standards (NES). However, these companies may also be covered by one or more of the following:
- Modern award(s)
- A pre-modern award or
- Other types of agreements.
To assess whether your company is covered by this system, click here.
National Employment Standards (NES)
- The NES are 10 entitlements which cover all employees that fall under national workplace relations.
- Employees who are also covered by a modern award, are still covered by the NES.
- Even employees who do not fall under national workplace relations are entitled to two NES entitlements. These relate to parental leave (and related entitlements) and notice of termination.
- These entitlements include maximum weekly hours of work, parental leave entitlements, and notice of termination entitlements.
- Casual employees are entitled to some of these standards but not all.
- All new staff must be provided with a Fair Work Information Statement. This statement provides information about the 10 National Employment Standards. To access a copy, click here.
Modern Awards: What are they and who do they cover?
- "Modern awards are industry or occupation-based minimum employment standards which apply in addition to the NES" (Fair Work Online).
- 122 modern awards have been introduced to replace awards in most (but not all) industries.
- Modern awards were created with the intention of establishing minimum payment and working conditions for both employers and employees in a variety of industries and occupations.
- Modern awards may not apply to high income earners, specifically those who have guaranteed annual earnings of more than $113,800 p.a.
To find out what modern award your organisation is covered by, use the Award Finder tool on the Fair Work Online website.
Once you have found your modern award, it is important to keep abreast of any changes to the minimum and pay and conditions. To do this, you can subscribe to email alerts provided by Fair Work Australia here.
[Sources: Fair Work Online]
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