2.16 Awards and Agreements

Question 1

Define “Awards”

Answer 1

A legally binding document determined by the Fair Work Commission that sets out minimum wages and conditions for employees across an entire industry or occupation.

Question 2

2 advantages of Awards

Answer 2

1. They provide a safety net for employees, ensuring they cannot receive wages or conditions below
2. Fewer disputes over wages due to no ability to negotiate at an enterprise level

Question 3

2 disadvantages of Awards

Answer 3

1. Less flexibility to tailor the wages and conditions to the needs of the business and employees
2. Business may need to implement multiple awards

Question 4

Define “Individual Employment Contract”

Answer 4

Covers those employees who are not under any award or collect/enterprise agreements

Question 5

Define “Enterprise bargaining”

Answer 5

There is an expectation that both parties enter negotiations in good faith. By attending and participating in meetings and responding to proposals promptly

Question 6

Define “Agreements”

Answer 6

A legal agreement on the pay and conditions of work made at the workplace level and negotiated between employees and employers

Question 7

2 advantages of Agreements

Answer 7

1. Highly flexible as the wages and conditions can be tailored to the needs of employees and the business
2. Can attract and retain high-quality employees

Question 8

2 disadvantages of Agreements

Answer 8

1. More expensive for the business
2. Time-consuming to negotiate and come to an agreement

Question 9

List 2 similarities between Awards and Agreements

Answer 9

1. Both have to contain pay and working conditions equal to or better than the National Employment Standards
2. Both have to approved by the Fair Work Commissions

Question 10

List 2 differences between Awards and Agreements

Answer 10

1. Awards cover employees in an entire industry while agreements only apply to employees at one workplace
2. Enterprise agreements contain pay and working conditions better than those in awards