Modern Awards
Modern Awards are industry or occupation based and apply in addition to the NES. Modern Awards provide for minimum entitlements, including wage rates, overtime and penalty rates, leave loading and hours of work. Rates payable under the relevant Modern Awards apply from 1 July 2010 and transitional provisions apply so that employers can phase in any increases over a 4 year period i.e. until 30 June 2014. A flexibility clause is included in each modern award which enables employers and employees to negotiate arrangements to meet individual needs. Where such agreements are made protections are in place to make sure that an employee is better off overall under the flexibility arrangement.
Modern awards do not apply where an employee has a guaranteed annual earning which exceeds the high income threshold, which is indexed annually.
An employer and employee are also free to agree on terms to supplement the NES without reference to an award.
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