Australian Employment Standards

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Australia’s current national employment standards have changed and developed to comply with the national standards. These employment standards are set out in law through the National Employment Standards. The industrial framework in Australia is managed by the Fair Work Commission which is responsible for educating and promoting enterprise bargaining. Industrial relation are governed by the Fair Work Act 2009 which established the 3 major streams in the labour market that determines the pay and conditions of employees. This includes industrial awards, collective agreements and industrial employment contracts, also known as common law contracts.
Minimum employment standards are current national employment conditions that employees are guaranteed …show more content…

Awards are legally binding documents which contain minimum terms and conditions of employment. Awards include information about the type of employment, arrangements for when work is performed, overtime, penalty rates, annualized wages, salary arrangements, allowances, leave related matter and superannuation. Awards extend the protection of the NES, which means that instead of having a single minimum wage rate, Australia has varying minimum pay rates across approximately 122 different awards. The Fair Work Commission sets these minimum award wage rates and casual loadings. Industrial awards set minimum pay and conditions which protect employees from exploitation, although this award can be inflexible which may not work for all employees. According to the above diagram, approximately 16% of the labour force is included in this award. Another disadvantage of industrial awards is that it prevents recognition of individual initiative as all employees received the same …show more content…

Individual employment contracts are an important wage determiner in Australia which must comply with the Fair Work Act. Common law contract are not included in the formal industrial relations system, however it must comply with the minimum standard of system. These individual contract are add-ons to relevant awards, they cannot offer pay rates and conditions below the rate that would be paid by the equivalent award. However when they offer high rates of pay above $129,300, the award requirements do not apply and the common law contract is able to replace the award. Common law contracts are enforced through law courts rather than industrial tribunals, although this usually creates increased expenses for employees and employers. Using the above diagram, approximately 39% of the workforce use individual employment contracts. Common law contracts, are not included in the formal industrial relations system as these contracts are private and not able to be discussed by others. These contracts offer less protection than other agreement and can lead to possible exploitation of employees due to unfair bargaining positions. However, these individual contracts allow flexibility to suit the varying needs of

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