Eleven minimum standards no contract can undercut

By Equipo Saplic Published on 12/08/2026 Updated on 12/08/2026

And an award that may give you considerably more.

For guidance only

The amounts and deadlines in this guide can change by law. Always check the update date and the official sources cited below. For a specific case, consult the labour authority or a professional.

In this guide
  1. The National Employment Standards
  2. Modern awards
  3. Enterprise agreements
  4. Employment contracts
  5. Why the layers matter
  6. The award also affects unfair dismissal
  7. Who enforces what
  8. Accurate calculation matters
  9. What to establish
  10. The Closing Loopholes reforms

Australian employment law works in layers, and knowing which applies to you determines what you are actually entitled to.

The National Employment Standards

The Fair Work Act 2009 is the floor. The NES sets eleven minimum entitlements — hours, leave, parental leave, notice and others — that no contract can undercut.

Modern awards

Industry or occupation-based instruments that sit above the NES, setting minimum pay rates, classifications, penalty rates, allowances and conditions for a sector.

Most Australian employees are covered by one.

Enterprise agreements

Negotiated at workplace or enterprise level and approved by the Fair Work Commission. They can provide more than the award.

Employment contracts

Individual terms sitting on top. They can improve on the award or agreement but cannot reduce NES entitlements.

Why the layers matter

Modern awards, enterprise agreements and contracts frequently override NES minimums and create additional obligations — including on redundancy.

Someone relying only on the NES scale may be underestimating what they are owed.

The award also affects unfair dismissal

The high income threshold — $190,100 for dismissals on or after 1 July 2026 — caps who can bring an unfair dismissal claim where no award or agreement applies.

If an award covers you, that threshold does not exclude you regardless of what you earn.

Who enforces what

  • Fair Work Commission — unfair dismissal claims, approving enterprise agreements
  • Fair Work Ombudsman — investigating underpayments

Accurate calculation matters

Underpayment, even by a small margin, can trigger a Fair Work Ombudsman investigation, a claim by the employee, or both.

What to establish

  1. Which modern award covers your role, if any
  2. Whether an enterprise agreement applies
  3. What your contract adds
  4. Your base rate for ordinary hours — redundancy pay uses it
  5. Your continuous service date

The Closing Loopholes reforms

The most substantial overhaul of the Fair Work Act in years, changing several aspects of the framework.

Frequently asked questions

What are the National Employment Standards?
Eleven minimum entitlements under the Fair Work Act 2009 — hours, leave, parental leave, notice and others — that no contract can undercut.
What is a modern award?
An industry or occupation-based instrument above the NES, setting minimum pay rates, classifications, penalty rates, allowances and conditions. Most employees are covered by one.
Why does my award matter?
Because awards, agreements and contracts frequently override NES minimums including on redundancy, so relying on the NES scale alone may understate what you are owed.
Does an award affect unfair dismissal?
Yes. The high income threshold caps claims only where no award or agreement applies. If one covers you, the threshold does not exclude you regardless of earnings.
Who enforces what?
The Fair Work Commission handles unfair dismissal and enterprise agreements. The Fair Work Ombudsman investigates underpayments.

Sources

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