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2 ways to manipulate modern awards to
suit the needs of your business

How do you feel about modern awards? Confused? Even a little overwhelmed?

Well you’re not alone… it’s no simple change that’s for sure!

If a modern award applies to your employees, then you need to make sure you have adjusted to all of the new employment conditions it contains – or pay the price.

But there are some alternatives available to you…and the Employment Law Practical Handbook can show you how to make them work.

For example, here are 2 ways you can make modern awards better suit the needs of your business.

1. Make an award flexibility agreement

Modern awards allow for you to make individual written arrangements – known as award flexibility agreements – with existing employees. These agreements enable you to agree to change the way an award applies to an employee.

Remember: An award flexibility agreement must result in the individual employee’s terms and conditions of employment being better off overall.

Chapter A2 Modern Awards in the Employment Law Practical Handbook contains a 7-point checklist that will show you how to create a fool-proof award flexibility agreement – and you will also find a ready-made agreement template you can tailor to suit your specific circumstances.

2. Make an earnings guarantee

If you make a written guarantee with an employee to pay them more than $118,100 per annum (adjusted for indexation at 1 July each year) and the employee accepts it, you can prevent a modern award from applying to their employment.

Tip: You need to know if your employee is eligible to make a guarantee of annual earnings. You’ll find a complete step-by-step checklist that explains exactly how to make an annual earnings guarantee in the Employment Law Practical Handbook’s modern awards chapter.

Here are a few more examples of the kind of practical, easy-to-understand information you’ll find in chapter A3 Modern Awards in the Employment Law Practical Handbook:

  • How to determine an employee’s modern award classificationmore information on Page A3/8
  • The 7 conditions of employment that a modern award can’t deal withmore information on Page A3/10
  • 5 steps you must follow when making an award flexibility agreementmore information on Page A3/11
  • How to prevent modern awards from applying to your high income employeesmore information on Page A3/13



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