Coding
Navigating the maze of the Minimum Wages & National Employment Standards?
All employees in Australia are entitled to a minimum wage. The minimum wage that is applicable to the employee will be dependent on whether they are award or agreement covered, and if so, which award or agreement applies.
If they are award or agreement covered, their minimum wage will then depend on their classification under that industrial instrument.
If the employee is an ‘award-free’ employee, they will still be entitled to at least the National Minimum Wage, which is prescribed through the National Minimum Wage Order, handed down each year by the Fair Work Commission’s panel, following their Annual Wage Review.
If they are award or agreement covered, their minimum wage will then depend on their classification under that industrial instrument.
If the employee is an ‘award-free’ employee, they will still be entitled to at least the National Minimum Wage, which is prescribed through the National Minimum Wage Order, handed down each year by the Fair Work Commission’s panel, following their Annual Wage Review.
All employees in Australia are entitled to a minimum wage. The minimum wage that is applicable to the employee will be dependent on whether they are award or agreement covered, and if so, which award or agreement applies.
If they are award or agreement covered, their minimum wage will then depend on their classification under that industrial instrument.
If the employee is an ‘award-free’ employee, they will still be entitled to at least the National Minimum Wage, which is prescribed through the National Minimum Wage Order, handed down each year by the Fair Work Commission’s panel, following their Annual Wage Review.
If they are award or agreement covered, their minimum wage will then depend on their classification under that industrial instrument.
If the employee is an ‘award-free’ employee, they will still be entitled to at least the National Minimum Wage, which is prescribed through the National Minimum Wage Order, handed down each year by the Fair Work Commission’s panel, following their Annual Wage Review.
THE DECISIONS
Annual Wage Review
The decision from the Annual Wage Review, and the subsequent Order, ordinarily come in to effect on 1 July each year. However, for pragmatic reasons, the Minimum Wage Order normal specifies that the increase take effect from the first full pay period on or after 1 July. In other words, if you are mid-pay period on 1 July, the new rates will not take effect until the next pay period.
In reaching its decision each year, the Annual Wage Review’s expert panel considers written submissions from interested organisations and individuals, consultations from expert witnesses and research commissioned by the panel.
The minimum wage order, when given each year, has effect on modern award minimum wages, and the national minimum wage for award-free employees.
Where a modern award minimum wage is applicable to an employee, that award minimum wage operates as an enforceable safety net in respect of those employees. In other words, irrespective of any other contractual arrangement you may come to with your employee, that arrangement cannot result in the employee earning less than they are entitled to under the modern award.
In reaching its decision each year, the Annual Wage Review’s expert panel considers written submissions from interested organisations and individuals, consultations from expert witnesses and research commissioned by the panel.
The minimum wage order, when given each year, has effect on modern award minimum wages, and the national minimum wage for award-free employees.
Where a modern award minimum wage is applicable to an employee, that award minimum wage operates as an enforceable safety net in respect of those employees. In other words, irrespective of any other contractual arrangement you may come to with your employee, that arrangement cannot result in the employee earning less than they are entitled to under the modern award.
THE FAIR WORK ACT 2009
The National Employment Standards
The National Employment Standards (NES) are a set of minimum employment entitlements that apply to all employees, irrespective of their award, agreement or other contractual arrangements.An award, agreement, or employment contract cannot provide for conditions that are less than the NES, or the Minimum Wage, and where they do, they will be invalid to the extent of that inconsistency.
The National Employment Standards are provided for in Part 2-2 of the Fair Work Act 2009 (Cth) and are broadly categorised as follows:
The National Employment Standards are provided for in Part 2-2 of the Fair Work Act 2009 (Cth) and are broadly categorised as follows:
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- Maximum Weekly Hours
- Right to request a Flexible Working Arrangement
- Offers and requests for casual conversion
- Parental Leave and related entitlements
- Annual Leave
- Personal/carer’s Leave, Compassionate Leave and Unpaid Family and Domestic Violence Leave
- Community Service Leave
- Long Service Leave
- Public Holidays
- Notice of Termination and Redundancy Pay
- Requirement for employers to provide new employees with the Fair Work Information Statement
For more information on the National Employment Standards and how they might affect your employment activities, contact Clyde Industrial today.
