So modern awards are now in operation. But are you sure that your business is compliant?

If your employees are covered by a modern award, you must ensure that you offer them terms and conditions of employment that at least match, if not better, those outlined in the award.

If you don’t, you could face fines of up to $33,000.

With that in mind, try completing this checklist – it will help to ensure that you are meeting your requirements when it comes to modern awards.

Modern Awards Checklist

• Determine whether or not any modern awards apply to your employees.
• If so, compare the conditions in the modern award to the conditions you currently offer the employee.
• Are the conditions you offer the employee less favourable than the conditions in the award? If so, you will need to make sure they receives at least the modern award entitlements.
• Do you have any high income employees (i.e. employees who earn over $108, 300 per annum)? If so, there are ways you can arrange to exclude them from being covered by the modern award.
• Ask yourself whether or not it would be beneficial to enter into individual flexibility arrangements or guarantees of annual earnings with any of your employees, for example high income employees.
• Check exactly when you will need to be fully compliant with the modern awards that apply to your business.
• Some modern awards include provisions which allow for the phasing in of certain award conditions i.e. increases in wage rates. For example, some awards will phase in wage increases over a 5 year period.

For more information on individual flexibility arrangements, guarantees of annual earnings or modern awards in general, keep an eye out for the brand new Modern Awards chapter being released with your next Employment Law Practical Handbook update.

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Regards,

Charles Power
Editor-in-Chief
Employment Law Practical Handbook

Tags: modern awards, workplace policies, workplace procedures