Modern awards

Modern awards are like a handbook of minimum employment standards for various industries or specific jobs. There are 122 different awards, each tailored to a particular industry or occupation. These awards detail the least an employer must offer in terms of wages, overtime pay, penalty rates and working hours. They ensure fair treatment and compensation for workers in different sectors, like retail, hospitality, or manufacturing.

How modern awards apply to your business

Modern awards are made and reviewed by the Fair Work Commission, and their minimum rates rise each year after the Annual Wage Review; from 1 July 2026, award minimum rates increased by 4.75%. An award applies automatically if it covers the employer's industry and the employee's work, and an employment contract cannot provide less. Awards do not apply to employees covered by an enterprise agreement or to high income employees with a guarantee of annual earnings. For example, a sit-down café is usually covered by the Restaurant Industry Award 2020, while a takeaway shop is usually covered by the Fast Food Industry Award 2020.

Read our pillar guide to modern awards, or book an HR compliance audit.