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The information on these pages relates to incorporated businesses, such as Pty Ltd.

 

Modern Awards update

Under the Fair Work Act 2009, the modern awards and the National Employment Standards (NES) establish a minimum safety net for wages and conditions of employment.

For incorporated businesses

The new modern awards become effective 1 January 2010. The modern awards will replace all existing federal awards and NAPSAs. Some parts of the awards will be phased in after 1 July 2010. However, most terms of the award will apply on 1 January 2010 to all incorporated businesses across Australia.

The modern awards will not apply to Queensland apprentices and they will continue to be engaged under existing terms and conditions. This will create inconsistent arrangements for incorporated businesses. However, more details about apprentices will be published as soon as the award modernisation process has been finalised.

Some key changes for on- site building, construction and civil businesses from 1 January 2010:

  • All building, civil and engineering on site employees will be covered under the Building and Construction General On site Award 2010.
  • The modern on site award has led to a levelling up of conditions which will apply immediately. E.g. a rate of 200% applies after the first two hours of overtime.
  • Fares and travel allowance will increase to $16.50 per day.
  • Overtime will apply to civil employees (and payment for inclement weather).
  • Ability to work other than an RDO system, so long as majority of employees agree.


Changes in wage rates (increases or decreases), penalty rates and some loadings will occur after 1 July 2010 and may be phased in over a five year period. Award schedules of phased in wages will be approved by the Fair Work Ombudsman in early 2010 and will be published with the relevant awards as soon as available.

Master Builders have produced a special edition of the on site award. The modern award manual includes the full award and commentary on new clauses.

Click here to order a copy.