The Fair Work Act 2009 (Cth) forms the cornerstone of employment law in Australia, establishing a comprehensive framework of rights and obligations for both employers and employees. This overview outlines the fundamental requirements that businesses must understand to ensure compliance.

National Employment Standards (NES)

The NES provides ten minimum employment entitlements that must be provided to all employees:

Maximum weekly hours (38 hours for full-time employees plus reasonable additional hours) Flexible working arrangements for eligible employees Parental leave and related entitlements (12 months unpaid leave with right to request additional 12 months) Annual leave (4 weeks per year, or 5 weeks for shift workers) Personal/carer's leave (10 days paid leave per year), compassionate leave, and family and domestic violence leave Community service leave Long service leave Public holidays Notice of termination and redundancy pay Fair Work Information Statement and Casual Employment Information Statement

Modern Awards

Modern Awards complement the NES by providing additional minimum terms and conditions for specific industries and occupations. These include:

• Minimum wages and salary rates

• Penalty rates and overtime provisions

• Allowances and additional payments

• Leave loading requirements

• Classification structures

• Consultation requirements

Enterprise Agreements

Employers may negotiate enterprise agreements with their employees, providing these offer better overall conditions than the relevant Modern Award. Key requirements include:

• Meeting the Better Off Overall Test (BOOT)

• Following proper consultation and voting procedures

• Lodging agreements with the Fair Work Commission for approval

• Regular review and renegotiation at expiry

Workplace Rights and Protections

The Act provides various protections for employees, including:

• Protection from unlawful termination

• Protection from discrimination

• Protection from workplace bullying and harassment

• Right to freedom of association

• Protection from adverse action for exercising workplace rights

Termination of Employment

Employers must follow strict requirements when terminating employment:

• Provide minimum notice periods or payment in lieu

• Pay out accumulated entitlements

• Follow proper consultation processes for redundancies

• Ensure dismissals are not harsh, unjust, or unreasonable

• Maintain proper documentation of the termination process

Record-Keeping Requirements

Employers must maintain accurate records including:

• Employee details and employment status

• Pay rates and wages

• Hours worked

• Leave taken and accrued

• Superannuation contributions

• Individual flexibility arrangements

• Termination of employment records

Compliance Obligations

To maintain compliance, employers should:

• Regularly review employment contracts and policies

• Keep up to date with Modern Award changes

• Conduct regular audits of employment conditions

• Maintain accurate time and wage records

• Provide payslips within one working day of payment

• Display required workplace information

• Train managers in workplace relations obligations

Penalties for Non-Compliance

Breaches of the Fair Work Act can result in:

• Substantial financial penalties for each breach

• Orders for back-payment and compensation

• Damage to reputation and brand

• Personal liability for directors and managers

• Potential criminal charges for serious breaches

Understanding and complying with these requirements is essential for all Australian businesses. Seek professional legal advice for specific situations or complex employment matters to ensure full compliance with your obligations under the Fair Work Act.

Understanding Australian Employment Law: Key Requirements Under the Fair Work Act