Who will be covered by a Modern Award?
Modern Awards will apply to most industries and occupations which have been traditionally covered by awards. However, a person with guaranteed earnings more than the ‘high income threshold’, which is current set at $108 300 per year, is free to agree to their own pay and conditions without reference to modern awards. The undertaking given by the employer in respect of the guaranteed level of income must be in writing and must be accepted by the employee. You should take action now to find out whether your business will be covered by a Modern Award as you may need to take action before 1 January 2010 to meet new legal obligations.