Award or Agreement Definition: Understanding the Basics
When it comes to employment and industrial relations, the terms “award” and “agreement” are commonly used. But what do they actually mean?
An award is a legal document that outlines the minimum wages and conditions that apply to a particular industry or occupation. It sets out things like pay rates, hours of work, allowances, leave entitlements, and other conditions of employment. Awards are made by the Fair Work Commission in Australia and are legally binding on employers and employees in the relevant industry or occupation.
On the other hand, an agreement is a legally binding document that sets out the terms and conditions of employment for a specific employer and its employees. These agreements are negotiated between an employer and the employees, or a union representing the employees. They may cover things like pay rates, working hours, leave entitlements, and other conditions of employment that are specific to that workplace.
There are different types of agreements that can be made under Australian law, including enterprise agreements, individual agreements, and collective agreements. Enterprise agreements cover a group of employees and are made between the employer and the employees or their union. Individual agreements are made between an employer and an individual employee, while collective agreements are made between an employer and a union representing a group of employees.
Both awards and agreements play an important role in ensuring fair and equitable conditions for employees. Awards are designed to provide a safety net of minimum conditions for all employees in a particular industry or occupation. Agreements, on the other hand, allow for more flexibility and can be tailored to meet the specific needs of a particular workplace or group of employees.
In conclusion, understanding the difference between awards and agreements is crucial for both employers and employees. Employers need to ensure that they are complying with the relevant award or agreement to avoid legal issues, while employees need to be aware of their rights and entitlements under these documents. At the end of the day, both awards and agreements are designed to provide a fair and balanced approach to employment relations.