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Phone: 131 628
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Rights & Responsibilities » Employees » Awards and Enterprise Agreements Awards and Enterprise Agreements
A guide to the legal documents that set out employee work conditions in the NSW industrial relations systemDownload Awards and Enterprise Agreements (pdf) The NSW industrial relations system covers most unincorporated businesses in NSW (e.g. sole traders and partnerships) as well as some incorporated businesses operating in NSW (e.g. some charities and not-for-profit organisations). Businesses may need to seek legal advice to determine whether NSW industrial relations laws apply to them.
What is an award?
An award sets out the rights and obligations of employers and employees engaged in particular types of work. There are many different types of awards covering different industries and occupations.
Awards cover conditions of employment including:
How are NSW awards made?
The NSW Industrial Relations Commission makes NSW awards upon application by an employer organisation or employee organisation (union) to create a new or revised award for a particular industry. Awards can also be made to settle industrial disputes.
Who is covered by a NSW award?
A NSW award covers all employers and employees in the industry or occupation to which it relates, whether or not they were involved in creating the award. Every award has a section that explains the industry or occupation covered by the award. Information about awards can be found at OIR Awards Online.
Award pay rates often increase after each State Wage Case following an application to the Commission by parties to the award. The Commission also updates and reviews awards every three years.
What about federal awards?
For information on federal awards or agreements, telephone the federal Department of Employment and Workplace Relations on 1300 363 264.
What is an enterprise agreement?
An enterprise agreement, like an award, sets out the rights and obligations of employers and employees engaged in particular types of work in a business.
It may be negotiated between an employer and the employees or with a union on behalf of those employees.
When the enterprise agreement covers the same employment conditions as the award, the enterprise agreement overrides the award.
An enterprise agreement may cover one or more conditions of employment. If any employment conditions are not covered in the enterprise agreement then the award conditions apply.
However, an enterprise agreement must comply with all NSW laws regarding employment rights and obligations, such as minimum entitlements to parental, annual and long service leave.
Every enterprise agreement must be in writing and signed by or on behalf of the parties. The parties to the agreement must be named and the agreement must state the employees who will be covered by the agreement.
Generally, all enterprise agreements must be for a fixed term of between one and three years. However, an enterprise agreement continues in force beyond that term until it is cancelled.
How is an enterprise agreement approved?
An application to approve an enterprise agreement can be made to the Industrial Registrar of the NSW Industrial Relations Commission. An enterprise agreement is not enforceable unless it has been approved by the Commission.
For information about applications, contact the Industrial Registrar on (02) 9228 7766.
When will the Commission approve an enterprise agreement?
The Commission will approve an enterprise agreement if:
Must an employee accept an enterprise agreement in their workplace?
No one can be forced to sign an enterprise agreement. However, where an enterprise agreement has been approved in a secret ballot of the employees, an employee who did not vote for the agreement is still covered by it once the agreement has been approved by the Commission.
Any new employee to a workplace is covered by the existing enterprise agreement, if it applies to the work that the employee will be doing.
However, employers are required to notify new employees of the existence of the agreement and must provide a summary of the agreement to the employee. How must all NSW awards and enterprise agreements be displayed?
Every employer must by law display a copy of all NSW awards and enterprise agreements that apply in their workplace, in a place easily accessible to all employees.
Employers can display awards on their computer system or intranet if all staff have access, know how to access the award and are notified that the award is there. If employers have employees who do not have access to the computer system or are infrequent users then a paper copy must be available to them as well.
Displaying the award means that all employees working under the award can be aware of their rights and obligations.
Tip: Check your award by using the OIR's NSW Awards Online or Check Your Pay service. For more information:
OIR Free Online services from OIR
Short courses and workshopsState-wide short courses and workshops are offered on a range of employment-related topics to help business owners and managers. Free seminars include employer rights and responsibilities under the NSW industrial relations system, the impact of federal industrial relations changes and specific industry awards. Other topics include recruiting staff, developing workplace policies and managing staff performance.
Experienced speakers are available to deliver informative and practical presentations on human resources and industrial relations to groups of 10 or more people.
To find out more, please contact Workplace Advice on (02) 9020 4612 or email us at win@oir.commerce.nsw.gov.au. top |
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Date Created: 22 March 2004 Last Reviewed : 14 April 2008 |
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 ©Office of Industrial Relations, NSW Department of CommerceMcKell Building, 2-24 Rawson Place, Sydney NSW 2000 Phone: 131 628 (anywhere within NSW) Fax: (02) 9020 4700 URL: http://www.industrialrelations.nsw.gov.au |
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Rights & Responsibilities
