What Award applies to my business?

Congratulations on taking the next step in your business growth! Knowing what Award applies to your industry is one of the first things any business owner with employees should be aware of. Let’s start with some Awards 101 and go from there.

A Modern Award is a document which sets out the minimum terms and conditions of employment on top of the National Employment Standards (NES). Modern awards provide entitlements such as:

• pay
• hours of work
• rosters
• breaks
• allowances
• overtime and penalty rates

The Fair Work Ombudsman has some excellent tools to find the right award for you. Check out their 3-step “Find my Award” tool here.

If you’re struggling to locate an award that applies, there’s a possibility that your employees might be classified as “award-free”. What’s that mean?

While most employees are covered by an award or registered agreement, a few jobs and industries are not. When an employee is not covered by an award or agreement, they are considered to be award and agreement free. While they may not be covered by an award, award free employees are entitled to at least the:

• National minimum wage
• National employment Standards (NES)

If you suspect your employees might fall into the award free category, there’s a series of questions you can ask:

• What is the industry of the employer?
• Is there an award covering the industry?
• Is there a classification for the employee in the industry award?

If the answer to the above is no: is there an occupational award for the employee’s occupation? The Clerks-Private Sector Award 2010 is a good example of an occupational Award covering employees across multiple industries.

If there is no occupational award,  the employee may be award free.

Your next step would be to check with the Fair Work Infoline on 13 13 94. They’re always happy to help.

Knowing what Award applies to your business allows you to offer the right pay rates and entitlements to your employees. Getting it right first time is smart. So is finding a good HR Consultant to help you on your journey to success and we know just the person. Check out his profile here or call us today!