Compare Awards and Agreements

When it comes to the legalities of employment, there are two primary documents that govern the employer-employee relationship- awards and agreements. Both of these documents outline the terms and conditions of employment and serve as a guide for both parties to abide by. However, there are some key differences between the two, and it is important to understand them before signing any agreement or accepting an award.

An award is a legal document that sets out minimum pay rates, conditions, and other employment standards for a particular industry or occupation. The award is created by a government body, such as the Fair Work Commission in Australia, and is legally binding. This means that an employer cannot offer conditions below the minimum outlined in the award. Awards are usually industry-specific, meaning that there are different awards for different industries, such as hospitality, retail, or manufacturing. It is essential for employees to check which award applies to their role and ensure that they are being paid and treated in accordance with the award.

On the other hand, an agreement, also known as an enterprise agreement, is a mutually agreed upon document between the employer and employees of a particular workplace. Agreement outlines the terms and conditions of employment that are specific to that particular workplace. Unlike an award, an agreement can offer conditions that are above the minimum standards set out in the award. However, an agreement cannot offer conditions that are below the minimum set in the applicable award. Agreements can be beneficial for both parties, as they can be tailored to suit specific workplace needs and can potentially offer more generous benefits.

When comparing awards and agreements, it is essential to note that an agreement must meet specific requirements to be legally binding. Firstly, the agreement must be approved by a majority of employees who are eligible to vote. Secondly, the agreement must pass the Better Off Overall Test (BOOT), which ensures that employees are better off under the agreement. If an agreement fails to meet these requirements, it will not be legally binding.

In summary, awards and agreements are both important documents that govern the employment relationship. Awards set minimum employment standards for entire industries, while agreements outline the terms and conditions of employment specific to a particular workplace. While agreements can offer more generous benefits, they must pass the BOOT and be approved by a majority of eligible employees to be legally binding. It is vital for employees to understand which award applies to their role and ensure they are being paid and treated in accordance with it. Similarly, it is important for employees to understand any agreement they are offered and the implications of signing it.

This entry was posted on 2022/02/15, in Uncategorized. Bookmark the permalink.