Coverage clause

The coverage clause is key in understanding who is affected by the terms of a particular award or agreement. It clearly outlines which sectors, industries, or types of employees are bound by its conditions. For example, a coverage clause might specify that it applies to all retail workers and their employers within a certain region.

How to read a coverage clause

Modern award coverage clauses usually describe the industry the employer operates in and the classifications of employees covered, and many list exclusions. If more than one award could apply, the employee is generally covered by the award with the classification most appropriate to the work they do and the environment they work in. For example, the Clerks—Private Sector Award 2020 covers clerical work across many industries, but not clerical employees covered by an industry award that has its own clerical classifications, such as the Hospitality Industry (General) Award 2020.

Read our guide to modern awards.