Does a Modern Award cover your employees? A Modern Award review is happening which may change the terms of a number of Modern Awards.

What is a Modern Award?

For those who are not aware of what a Modern Award is - 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, penalty rates and overtime. There are more than 100 industry or occupation awards that cover most people who work in Australia.

Why is a review happening?

The Fair Work Commission has started a process to review Modern Awards in relation to issues raised by the Minister for Employment and Workplace Relations, including the usability of some awards.

This process was prompted by a letter from Minister Tony Burke to Tribunal President Adam Hatcher on 15 September 2023, which expressed the Australian Government's interest in the Fair Work Commission initiating a “targeted review” of Modern Awards.

Minister Tony Burke made the comment that, “The desirability of a review and possible areas for focus arise from outcomes of the Jobs and Skills Summit, changes to the objects, objectives and gender equality provisions of the Fair Work Act 2009 made by the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022, workplace recommendations of the National Cultural Policy, Revive, and the Final Report of the Senate Select Committee on Work and Care”.

What will be reviewed?

While Modern Awards change regularly, this review is significant because during the review, a Full Bench will consider:

the new object of the Fair Work Act 2009 and Modern Awards objective regarding job security and the need to improve access to secure work across the economy;
the impact of workplace relations settings on work and care, including early childhood education and care; and
award coverage and minimum standards for the arts and culture sector, including potential coverage gaps.

A Full Bench will also consider any proposals to make Modern Awards easier to use. The Fair Work Commission has said that the proposals should be confined to the seven most commonly used Modern Awards listed below:

Children's Services Award 2010
Clerks – Private Sector Award 2020
Fast Food Industry Award 2010
General Retail Industry Award 2020
Hospitality Industry (General) Award 2020
Restaurant Industry Award 2020
Social, Community, Home Care and Disability Services Industry Award 2010

What should your business be doing?

If your business and its employees are covered by a Modern Award/s, it is important to keep an eye out for any upcoming changes which may affect your business and employees to ensure you are complying with any changes to your obligations. This includes general changes made outside of this specific review process (noting that Modern Awards are constantly subject to change).

If you are unsure whether a Modern Award applies to your business and employees or you need assistance with understanding the terms of a Modern Award and how they apply, please get in touch with our Employment and Industrial Relations Team for advice.

We will keep you up to date with the progress of the review. Any changes made to Modern Awards as a result of the review will likely be significant.