You answered Yes.
Fantastic!
Whilst there are some occupations that remain award free (lawyers, accountants, high level executives), there are many occupations which you may be surprised to learn are covered by a Modern Award, for example some scientists, architects, financial advisers, engineers and IT professionals. Most common occupations are also covered by modern awards, for example, cleaners, retail workers, receptionists and other administrative staff.
You must ensure they you are aware of the relevant award coverage and classification for your employees and that you comply with the terms and conditions contained within applicable awards at all times. Breaches of the terms and conditions of awards may incur fines of up to $33,000 per employee per breach.
You answered No.
From 1 January 2010, modern awards covered most workplaces. Modern awards were created to establish one set of minimum conditions for employers and employees across Australia who work in the same industries or occupations.
Employers must ensure that they classify their employees under the correct award and award classification and that they comply with the terms and conditions contained within the applicable award at all times. Whilst there are some occupations that remain award free (lawyers, accountants, high level executives), there are many occupations which you may be surprised to learn are covered by modern awards, for example, some scientists, architects, financial advisers, engineers and IT professionals. Most common occupations are also covered by modern awards, for example, cleaners, retail workers, receptionists and other administrative staff.
Even if your pay your employees more than the rate of pay listed in an award, they may still be entitled to other award entitlements (such as arrangements for when work is to be performed, overtime, penalty rates or leave loading).
The only way that employers can effectively "buy-out" conditions like overtime, penalty rates or leave loading is if an award has a 'flexibility clause'. A flexibility clause allows employees and employers to agree to 'vary' the application of certain terms of an award (that would otherwise apply to an employee) in return for an annual salary or commission. This salary or commission must result in the employee being 'better off overall' than they would have been had they continued to be paid in accordance with the award. This arrangement must be documented in writing in the form of an "Individual Flexibility Agreement".
It is also important to note, that certain award conditions cannot be varied and will always remain applicable, for example some awards may contain specified redundancy terms, tool of trade allowances, consultation obligations and so on.
Unless an award contains an annualised salary clause or you enter into an Individual Flexibility Agreement with your employees, you cannot pay employees an annual salary and must pay them the rate of pay stipulated in the applicable award.
It is strongly advised that you seek advice on the award relevant coverage and classification of your employees and your obligations under the applicable award. Breaches of the terms and conditions of awards may incur fines of up to $33,000 per employee per breach.