Does an Employment Agreement Override an Award

When it comes to Australian workplace law and employment agreements, there is often confusion about what takes priority: an employment agreement or an award. This question is not always easily answered, as it largely depends on the specific circumstances of the individual employment agreement and award in question.

To start, let`s define what an employment agreement and an award are. An employment agreement is a legally binding agreement made between an employer and an employee, outlining the terms and conditions of their employment. These agreements are usually tailored to the individual employee, and can cover a range of areas such as salary, working hours, and notice periods. On the other hand, an award is a legal document that outlines the minimum pay rates and conditions of employment for a particular industry or occupation. Awards are created by the Fair Work Commission, and are legally binding for employers and employees who fall within the scope of the award.

So, does an employment agreement override an award? The answer is: it depends. Employment agreements can override some, but not all, of the provisions of an award. For example, an employment agreement can provide for a higher rate of pay than what is outlined in the relevant award, or provide for additional employment entitlements such as extra annual leave. However, there are certain provisions of an award that cannot be overridden by an employment agreement. These include minimum wage rates, penalty rates, and basic entitlements such as annual leave and sick leave. Employers must ensure that their employment agreements do not breach any provisions of the relevant award, or they may be liable to pay penalties and back-pay to affected employees.

It`s also worth noting that awards can be varied or terminated by the Fair Work Commission. This means that if a variation to an award is made, it will usually take precedence over any conflicting provision in an employment agreement. Employers must ensure that they stay up to date with any changes to the relevant award, as failing to do so can result in legal and financial consequences.

In summary, while an employment agreement can override some aspects of an award, it cannot override all of them. Employers must ensure that their employment agreements do not breach any provisions of the relevant award, and they must stay up to date with any changes to the award. If in doubt, it`s recommended that employers seek legal advice to ensure compliance with workplace laws and regulations.