Awards and enterprise agreements are two terms that often cause confusion in the workplace. While they both relate to employment rights and conditions, they have different meanings and implications. In this article, we will define these terms and differentiate them to help you understand which one applies to your situation.
Awards
An award is a legally binding document that outlines the minimum employment standards and conditions for a specific industry or occupation. Each award sets out the minimum wage rates, working hours, leave entitlements, and other terms of employment. Awards are created and maintained by the Fair Work Commission, and they apply to all employees within their designated industry or occupation.
Awards are designed to ensure that workers are treated fairly and receive appropriate compensation and conditions for their work. They form a baseline for minimum standards that cannot be undercut by employers. Awards are updated regularly to reflect changes in the industry or the economy.
Enterprise Agreements
An enterprise agreement is a negotiated agreement between an employer and its employees, or their representatives, setting out the terms and conditions of employment. Enterprise agreements can cover a wide range of workplace matters, including job security, wages, working hours, and leave entitlements. They are legally binding contracts that apply only to the employer and the employees who are party to the agreement.
Enterprise agreements are tailored to suit the specific needs of a particular workplace and can provide greater flexibility than awards. They can offer employees more generous terms and conditions than those specified in the relevant award.
The Difference
The key difference between awards and enterprise agreements is that awards set out the minimum standards that must be met by all employers in a particular industry or occupation, while enterprise agreements are negotiated between an employer and its employees. Awards provide a framework for minimum standards, whereas enterprise agreements can offer more flexible arrangements and better conditions than awards.
Another difference between awards and enterprise agreements is that awards are created and maintained by the Fair Work Commission, while enterprise agreements are negotiated by the parties involved. Awards apply to all employees in a particular industry or occupation, while an enterprise agreement only applies to the employer and its employees who are party to the agreement.
Conclusion
In summary, awards and enterprise agreements are both important legal instruments that relate to employment conditions. Awards set out the minimum standards that must be met by all employers in a particular industry or occupation, while enterprise agreements are negotiated contracts between an employer and its employees. Employers must comply with the relevant award, and employees can negotiate for better conditions through an enterprise agreement. Understanding the difference between these two terms is essential for both employers and employees to ensure that their rights and entitlements are protected.
