Relevant Awards and Certified Agreements: Understanding Their Importance
As a business owner or HR manager, it’s important to understand the significance of relevant awards and certified agreements in the workplace. These documents play a critical role in determining employee pay rates and entitlements, as well as outlining workplace rights and obligations.
But what exactly are relevant awards and certified agreements, and why are they so important? Let’s explore.
Relevant Awards
A relevant award is a legal document that sets out minimum pay rates, work conditions, and other entitlements for a specific industry or occupation. There are hundreds of different awards covering various sectors, including hospitality, healthcare, retail, and construction.
Relevant awards are designed to ensure that employees receive fair and equitable pay and working conditions. They also serve as a reference point for employers when negotiating employment contracts and determining appropriate salaries and benefits.
It’s important to note that relevant awards are legally binding and enforceable. Failure to comply with an award can result in penalties and legal action.
Certified Agreements
Certified agreements, also known as enterprise agreements, are contracts negotiated between an employer and their employees (or their representatives, such as a trade union) that outline pay rates, working conditions, and other terms of employment. These agreements must be approved by the Fair Work Commission, ensuring they meet legal standards and provide fair and reasonable outcomes for both parties.
Unlike relevant awards, certified agreements are specific to individual workplaces or companies. They can be tailored to meet the needs of a particular business or industry and are useful for addressing unique circumstances and requirements that may not be covered by a relevant award.
Why Are They Important?
Relevant awards and certified agreements are crucial for ensuring that employees receive fair and just treatment in the workplace. They establish minimum standards for pay rates, working hours, leave entitlements, and other conditions, and help to prevent exploitation and unfair practices.
Compliance with relevant awards and certified agreements is also essential for avoiding legal disputes and penalties. Employers who fail to adhere to these documents may face legal action and reputational damage, which can have serious consequences for their business.
Furthermore, relevant awards and certified agreements can boost employee morale and productivity. By providing clear guidance on working conditions and entitlements, they can help to reduce uncertainty and ambiguity in the workplace. This can lead to better job satisfaction, increased loyalty, and improved organisational performance.
Final Thoughts
If you’re an employer or HR manager, it’s essential to understand the importance of relevant awards and certified agreements in your workplace. These documents provide a legal framework for determining employee entitlements, facilitating negotiations, and minimising disputes.
By staying up-to-date with relevant awards and certified agreements, you can ensure that your business complies with legal requirements, promotes fair treatment of employees, and maintains a positive workplace culture.