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Awards explained

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What is an award?

An award is a legally binding order made by an industrial tribunal which prescribes the terms and conditions of employment. Employers are also parties to the award and are bound by its provisions.

How an award is made

Usually, an award is made as a result of negotiations between unions and employer organisations on behalf of their members. The terms and conditions of an award do not become law until the Queensland Industrial Relations Commission (QIRC) publish orders to make or amend an award.

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Award coverage in the workplace

Prior to 27 March 2006 some employees in a workplace could be covered by a federal award while the remainder were covered by Queensland awards or legislative minimum employment conditions.

Since 27 March 2006, employers who are constitutional corporations (e.g. a Pty Ltd or Limited company) and their employees are now covered by the federal workplace relations system.

Determination of coverage by the federal system is important as entitlements will vary between the Queensland and federal systems.

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Does a Queensland state award apply to my employment situation?

Provided the employer is not a constitutional corporation, a Queensland state award may apply to:

Common state awards apply in the clerical, retail, building construction, retail take-away food, restaurant, transport, nursing, hairdressing, plant nursery and wholesale warehouse industries.

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Does a federal award apply to my employment situation?

Prior to 27 March 2006 federal awards applied only to specific ‘respondent’ employers (and their employees) engaged in work covered by the award in a particular industry. In general there are three ways by which an employer is respondent to a federal award:

Common businesses covered by pre-reform federal awards include hotels in south-east Queensland, service stations, social and community service providers, metal working & engineering plants, plumbers, clothing manufacturers, dry cleaners, retail butchers and meat processors.

If you know that you were covered by a federal award or agreement, prior to 27 March 2006 you can search historical or pre-reform federal awards or agreements on WageNet. (Non-Queensland Government link)

Since 27 March 2006, the federal workplace relations laws preserved these awards and additionally, workers employed by a constitutional corporation who have transitioned from the state system to the federal system, initially retain their previous conditions of employment under either:

Workplace Authority (Non-Queensland Government link) (formerly the Office of Employment Advocate)
A federal government website that provides support and information on federal workplace agreements and lodgement.

Workplace Ombudsman (Non-Queensland Government link) (formerly the Office of Workplace Services)
An independent federal government agency with the objective of ensuring the rights and obligations of workers and employers under the federal system are understood and enforced fairly.

Needing assistance?

If you are unsure which award covers you, assistance can be obtained from the:

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What can an award contain?

Historically, many awards were limited to traditional issues such as terms and conditions of employment, pay and benefits, hours of work and leave entitlements.

More recently awards have increasingly dealt with matters such as skills-based classification structures, commitments to training, consultation and dispute resolution and flexibility in the operation of the award. This has been part of the changing role of industrial relations legislation and industrial instruments which now are generally accepted as playing an integral and important role in the efficiency and effectiveness of enterprises, industries and the economy as a whole.

While both federal and Queensland state awards have dealt with the broad scope of employment issues in the past, federal awards are now limited to a set of ‘allowable’ award matters which deal only with 20 minimum basic entitlements. Preserved federal award terms about long service leave, jury service and notice of termination continue to apply to award reliant employees, however, new awards will not contain provisions about these matters.

Preserved federal award terms about superannuation continue to apply in accordance with the award terms until 30 June 2008 when the Superannuation Guarantee legislation for the uniform calculation of all employers’ superannuation liability will come into effect.

Queensland’s system of state awards continue to provide for a range of flexible and facilitative clauses designed to allow employers and employees to agree on the most effective and efficient arrangements for their workplace or industry.

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What is the role of Queensland state awards?

Many Queensland employers and employees, especially those in small business, continue to rely on awards as the sole instrument to determine wages and other employment conditions. The importance of awards in this context is their role in setting fair and reasonable wages and employment conditions for the small business sector of the economy and the community.

An equally important role for awards is their support for the making of agreements between employers and employees. This may be done through the use of various facilitative and flexibility clauses contained in the award (e.g. provisions allowing employees and employers to agree on a wider spread of hours of work or shift rosters). Awards also act as a benchmark against which certified agreements or Queensland workplace agreements will be tested.

The Act therefore provides for a system of state awards that are to be kept relevant, up-to-date and reflective of community standards. So that these roles are fulfilled the Queensland Industrial Relations Commission must ensure that awards:

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How flexible are awards?

With many competing priorities in operating a business, employers and employees are often unaware that many award provisions can be flexible, and made to suit the individual needs of workplaces.

Awards set out the employer’s obligations to provide employees with pay and conditions but they also provide opportunities for employers and employees to agree on certain conditions that will better cater for both business and employee needs.

A common option in awards is the ability to spread ordinary hours of work over a four week cycle, thereby providing the opportunity for an employer to operate their business by employing greater numbers of staff during the hours when customer demand is highest. This means that employees could work to an agreed roster of 42 ordinary hours one week but only 34 hours the following week, so long as the total number of ordinary hours worked does not exceed 152 hours per four week cycle (i.e. 4 x 38hrs = 152hrs). These types of arrangements also give employees access to regular rostered days or half days off providing more options for their leisure time.

Flexible hours clauses such as these also commonly include the following provisions:

Other flexible provisions to be found in awards include:

Not all of the above provisions will be available in all awards and where they are available they are usually only able to be implemented by majority agreement with employees.

Each award is different and it is in the best interests of both employers and employees to read the relevant award thoroughly.

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What happens if employees are award free?

Employees not covered by any state award or agreement are free to negotiate most of the terms and conditions of their employment contract with their employers, providing that the employment contract does not provide for lesser entitlements than those contained in the Industrial Relations Act 1999. View our resource page on non-award employees for more information on the industrial relations entitlements and obligations applicable to employment that is not covered by any award or agreement.

Since 27 March 2006 , award free workers employed by a constitutional corporation are entitled to the Australian Fair Pay and Conditions Standard under the Workplace Relations Act 1996 (Commonwealth).

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Do awards have to be displayed at the workplace?

Yes. In workplaces covered by a state award or agreement, the employer has a statutory obligation to display a current copy of the award or agreement (other than a Queensland Workplace Agreement) in a position where employees can easily read it.

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How do I purchase or subscribe to an award?

Copies of consolidated state awards and agreements can be ordered from the Industrial Relations Information Service [IRIS].

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Last updated: 10 June 2008

See also ...

Wageline's publication on:

Awards and Agreements - a guide on opportunities within the industrial relations system for employers and employees to make agreements that will benefit them both in their workplace or industry.