Modern Awards are legal documents created by the Fair Work Commission that set out the minimum employment conditions for employees in specific industries or occupations. These conditions include pay rates, hours of work, rosters, breaks, allowances, penalty rates, and other entitlements.
Modern Awards are a fundamental part of Australia’s industrial relations system and operate in conjunction with the National Employment Standards (NES). They are designed to ensure that employees receive fair and consistent minimum entitlements, regardless of the size or type of their employer.
🔗 Fair Work Ombudsman – Awards
Modern Awards typically include provisions for:
Each award is tailored to a specific industry or occupation, ensuring that the working conditions reflect the nature of the work and business requirements.
Modern Awards apply to:
To determine which award applies, you need to assess the industry and type of work an employee performs. Some awards are industry-based (e.g., Hospitality Industry (General) Award), while others are occupation-based (e.g., Clerks, Private Sector Award).
💡 Example: A retail store assistant is typically covered by the General Retail Industry Award, while an accountant in the same company might fall under the Clerks, Private Sector Award.
While Modern Awards are set by the Fair Work Commission and apply broadly across industries or roles, Enterprise Agreements (EAs) are negotiated at the workplace level between employers and employees (or their representatives).
Key differences:
For employers, compliance with modern awards is crucial to avoid underpayments, disputes, or penalties. Awards influence key workforce management activities including:
Manually managing award compliance can be time-consuming and error-prone. That’s why Microkeeper’s all-in-one HR, payroll, and rostering software includes built-in award interpretation tools.
Key features:
See how Microkeeper simplifies award compliance
You can search by job title or industry on the Fair Work Award Finder or seek legal advice if you’re unsure.
No. Employees are generally covered by a single primary award based on the principal purpose of their role.
Yes. The Fair Work Commission conducts annual wage reviews and may update award conditions. Employers must stay up to date with changes.
Some employees—such as senior managers or high-income earners, may be award-free but still entitled to NES. Others may be covered under an enterprise agreement.
Modern Awards are a cornerstone of Australia’s employment law framework. They help protect employee entitlements and provide clear standards for employers. By understanding and applying the right award, businesses can build compliant, transparent, and fair workplaces.
With tools like Microkeeper, managing award complexity becomes far easier—letting you focus on growing your business, not untangling award clauses.
Disclaimer: This content is for informational purposes only and does not constitute legal or industrial advice. For award clarification, contact the Fair Work Ombudsman or consult a legal professional.
