The system of ‘modern awards’ operating under Pt 2-3 of the Fair Work Act 2009 (Cth) (FW Act) — along with the National Employment Standards (NES) in Pt 2-2 forms the ‘safety net’ of minimum employment conditions for employees covered by the FW Act.

The Fair Work Commission (FWC) has various (albeit limited) powers under the FW Act, and relevant transitional legislation, to vary or review modern awards. Modern awards are to be reviewed by the FWC every four years, while minimum wage provisions in modern awards are reviewed on an annual basis. There is also a general power to vary or revoke modern awards, or make new awards, but only if this will achieve the ‘modern awards objective’ in s 134 of the FW Act. Modern awards may also be varied to remove ambiguity or uncertainty, to correct an error, or to remove discriminatory content.

See Varying/reviewing modern awards.

Awards applying to specific enterprises (rather than across industries or occupational groupings), known as ‘enterprise instruments’, were not subject to the award modernisation process. Schedule 6 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (Transition Act) contains provisions for the termination and modernisation of enterprise instruments into ‘modern enterprise awards’ by the FWC.

See Enterprise awards/instruments.

Schedule 6A of the Transition Act deals with the modernisation of instruments known as ‘State reference public sector transitional awards’ into ‘State reference public sector awards’. These provisions apply only in respect of states that have referred the regulation of public sector employment to the Commonwealth.

See State reference public sector awards.