There are 3 main types of employment contracts:
Modern awards
Modern awards refer to the standardised and legally enforceable minimum terms and conditions that apply to a business or industry. There are more than 100 industry / occupation awards that cover most people who work in Australia.
Modern awards include information about:
- Wages (including penalty and overtime rates)
- Hours of work and rest breaks (including flexible work arrangements)
- Allowances for uniform or tools
- Leaves (such as sick, holiday, long service, study, family and maternity leaves)
- Redundancy entitlements
Modern awards vs NES
Modern awards are industry specific and provide detailed terms and conditions for specific for specific industries and occupations, while the NES are standard terms that apply to generally, all employees.
Enterprise agreement
An enterprise agreement is a negotiated wage and working condition agreement that is discussed between employers and a group of employees.
It covers a broader range of terms and agreements than a modern award.
- May cover rates of pay, overtime, hours of work, allowances and leave.
- Must be approved by the Fair Work Commission (FWC)
- Must be in writing
Common law contract
A common law contract is a contract between the employer and one individual, often used with professionals (such as senior managers)
- It is signed individually, and typically very secretive
- Employees can negotiate for higher pay