Awards and Agreements

Question 1

Awards and Agreements

Answer 1

Wages and conditions in the workplace are determined by:

National Employment Standards (NES)

Awards (often called ‘modern awards’)

Collective Agreement / Enterprise Bargaining Agreement

Individual Employment Contract

Question 2

National Employment Standards

Answer 2

National Employment Standards:

Annual leave

Public holidays

Notice of termination and redundancy pay

Parental leave

Requests for flexible working arrangements

Question 3

Awards

Answer 3

Award:
A legally binding document that sets minimum wages and conditions for entire industries or occupations.

Question 4

Agreements

Answer 4

Agreement:
A workplace-level agreement on pay and conditions negotiated between employees (or their union) and employers.

Question 5

Industry-wide awards

Answer 5

Awards are contracts which set out minimum wages and conditions for an industry (eg hospitality).

Question 6

Industry-wide awards: Advantages

Answer 6

Industry-Wide Awards - Advantages:

Lower cost for the business

Less time spent setting terms and conditions

Less work for management, as allowances are pre-determined

Limited input from employees

Provides a stable safety net for employees

Question 7

Industry-wide awards: Disadvantages

Answer 7

Industry-Wide Awards - Disadvantages:

Less flexibility; can’t be customized to a workplace’s needs

Multiple awards may be needed for one workplace

Modern awards can be complex

May not attract the best talent for positions

Question 8

Agreements: Advantages - Disadvantages

Answer 8

Agreements - Advantages:

More flexible for individual business needs

Easier to include productivity incentives

Promotes good employee-employer relations

Can attract talented or highly skilled employees

Agreements - Disadvantages:

Less wage equality across industries

Weaker collective employee bargaining

Can be expensive for the business