kk9 Flashcards
Awards definition
legally binding minimum requirements for wages and conditions applying to specific industries, establishing terms of employment for various occupations and levels in a particular industry.
What do awards specify (Memorise 5)
minimum wages
- working conditions and overtime
- meal breaks
- holidays and leave
- penalty rates and allowances
- procedures for resolution of grievances and termination of employment
- superannuation
- annual leave and leave loadings.
When does an award no apply?
When a business has an enterprise agreement or other registered
agreement with its employees.
Advantages of awards
Less time consuming in determining appropriate terms and conditions - awards cannot be negotiated
Provide a stable and secure safety net for employees - ensures the buisness cannot offer wages or conditions below those in the award
Less costly for business - awards offer minimum wages and conditions allowed for their industry
Disadvantages of awards
Provide less flexibility - terms cannot be customised to the needs of the workplace
Multiple awards may have to be understood, as they cover multiple industries in one business
Unable to negotiate productivity gains for higher wages with the employees
Collective bargaining definition
determining the terms and conditions of employment through direct negotiations between unions and employers.
Enterprise bargaining impact
the process of enterprise bargaining has provided the opportunity for employees to gain employment
conditions that improve on these minimum standards.
Enterprise agreement (Collective agreement).
A collective agreement made in a workplace regarding pay and conditions of employment between the employer and a group representing the majority of its employees. It is allowed to go above and beyond the award but never below.
Where is the system of establishing wages and conditions for Australian employees set out?
Where can an employee’s wages and conditions may be determined
Is set out in the Fair Work Act 2009.
via an award, an enterprise
agreement or through an individual employment contract with their employer.
individual contracts
Personalised agreements regarding terms and conditions of employment between an employer and a single employee.
The Fair Work Commission will examine the detail of the agreement to ensure that:
there is genuine evidence that both the employer and employees agree to the terms of the agreement
- a majority of employees has been consulted, either by the relevant union or any other group or individual representing the
employees in negotiations - employees will be better off overall by entering into the agreement than simply being covered by the relevant Award
- the agreement is consistent with the National Employment Standards
- no unlawful content is included in the agreement, such as provisions that might contradict equal employment opportunity
legislation. - the agreement specifies a date as its nominal expiry date (not more than 4 years after the date of Commission approval)
- the agreement provides a dispute settlement procedure
- the agreement includes a flexibility clause and a consultation clause.
To receive approval for the enterprise agreement, FWC will look to ensure that:
- Both parties have bargained in good faith
- Agreement includes flexibility clause
- Agreement provides a dispute resolution process
Advantages to agreements
- Greater flexibility to tailor an agreement to the needs to the business and their employees
- Attract + Retain quality employees by offering competitive wages + working conditions
- Agreements can be negotiated -> productivity gains being rewarded with higher wages
Disadvantages to agreements
Time consuming to negotiate the agreement
Negotiations can break down -> disputes -> industrial action -> harm productivity + relationships
Increased costs to the business due to providing increased wages and/or improved conditions of work
In addition to the National Employment Standards, enterprise agreements must include the following:
a nominal expiry date, usually two or three years after the commencement of the agreement
- procedures for settling any disputes that might arise in the implementation of the agreement, including the right of
employees to be represented in the dispute settlement procedure - terms that allow for individual flexibility, so that arrangements can be made between the employer and individual
employees - provisions for consultation with employees on major workplace change.In addition to the National Employment Standards, enterprise agreements must include the following:
Individual contracts
personalised agreements between an employer and a single employee in a buisness, usually for higher-up employees. They are allowed to go above and beyond awards, however, not below.
Who implements it?
Fair works commission
Who makes sure it’s running smoothly?
Fair works ombudsman
When can an individual contract exclude award?
The only cases in which a common law employment contract can exclude relevant Award conditions is when the employee is guaranteed an income
that is above the high income threshold. This threshold is indexed each year on 1 July,
Similarities between awards and agreements
- Both are legally binding and enforceable once agreed upon and approved by FWC
- Both outline the wages and conditions of employment for employees in a business
- Both must comply either the 11 NES
- Both involve FWC (Awards are set by FWC + Agreements must be approved by FWC)
Differences between Awards and agreements
- Awards are established by FWC whereas agreements are negotiated through enterprise bargaining
- Agreements can be tailored to suit the needs of a particular business whereas awards cannot
- Awards cover all employees in a particular industry whereas agreements cover a group of employees at a particular workplace
