Sources of employment conditions
In Australia, employment conditions come from multiple sources that layer on top of each other. Higher sources can add to but not reduce the minimums set by lower sources.
Statutory minimums
- National Employment Standards
- Modern awards
- Enterprise agreements
- Cannot be reduced
Individual arrangements
- Employment contracts
- Above-award payments
- Additional benefits
- Workplace policies
Key employment conditions
Employment conditions cover a wide range of terms that define the employment relationship:
Common employment conditions
Conditions hierarchy
Understanding how different sources of conditions interact is important for compliance:
- NES is the floor: 11 minimum entitlements that can never be reduced
- Awards add detail: Industry-specific rates, penalties, and conditions
- Agreements can vary: Enterprise agreements can trade off some conditions if better overall
- Contracts supplement: Can provide above-award benefits but not reduce minimums
- Employee gets better of: Where there's conflict, employee receives the more beneficial term
Information requirements
Employers must provide certain information about employment conditions. This includes the Fair Work Information Statement to all new employees and, for casuals, the Casual Employment Information Statement. Payslips must also detail pay components so employees can verify their conditions.
Conditions by employment type
Full-time & part-time
- All NES entitlements (part-time pro-rata)
- Paid annual and personal leave
- Notice of termination required
- Redundancy pay entitlement
Casual employees
- 25% casual loading (typically)
- Unpaid carer's/compassionate leave
- No paid annual or personal leave
- Pathway to permanent conversion
Common mistakes with employment conditions
Not checking the award
Assuming contract terms are the complete picture when the applicable award may provide additional or different conditions.
Unilateral changes
Changing conditions without employee agreement, which may breach the employment contract and create disputes.
Poor documentation
Not clearly documenting agreed conditions, leading to confusion about what was actually agreed between the parties.
Key takeaways
Employment conditions come from multiple sources—NES, awards, agreements, contracts, and policies. Understanding this hierarchy ensures employees receive their full entitlements and employers maintain compliance practices.
Accurate tracking of hours, leave, and pay is essential for meeting employment conditions. RosterElf helps manage these elements with time tracking, leave management, and award interpretation.
