Contracts

For jobs covered by an award
For jobs not covered by an award
Can I change the details of an award?

For jobs covered by an award

If your employee is going to do a job covered by an award, then you need not have a specific contract with your employee. Your letter of confirmation is all you need to provide. You may decide to offer higher wages or better benefits than the award requires. This can be described in the letter of confirmation.

Your State Farmers Association will advise you about the Federal and State awards affecting you. It is your obligation to ensure your employee understands the award which covers their job. So you will need to discuss the contents of the award with them.

Click here to see an example of a letter of confirmation for a job covered by an award.

Many agricultural jobs are covered by State and Federal awards. An award defines the minimum terms regarding wages or salaries, working conditions of employees, etc. In some cases, such awards cover a specific issue such as superannuation or long service leave.

The Federal and State systems of industrial relations are administered separately. Federal awards are the responsibility of a federal body, the Industrial Relations Commission. At the state level there are State Industrial Relations Bodies, except in Victoria where state responsibilities have been handed over to the federal commission.

It is important for employers to have adequate knowledge of the awards that apply to their business and the regulations that prescribe what can and cannot be done.

For example it is a requirement of the Federal Pastoral Industry Award that employers and shearing employees sign prescribed agreements before the commencement of shearing. Failure to sign agreement forms is a breach of the award by both the employer and the employee.

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For jobs not covered by an award

If your employee is going to do a job which is not covered by an award then you need to have a contract which outlines the terms and conditions of the job. Before your new employee arrives you should prepare 2 copies of the contract to be signed by yourself and your new employee. The contract should state

• The full contact details of you, the employer, and employee
• Pay and conditions that have been agreed
• A description of the job based upon your duty and accountability statements
• Annual and sick leave entitlements and procedures
• Your intention to pay superannuation of at least 9% of the base pay
• A description of the start and finish dates if it is a fixed term contract
• A description of the probationary period and the end date
• A description of how the contract can be terminated by each party

Click here to see an example of a contract for jobs not covered by an award

Employers are urged to use their State Farmers Association to help them write an appropriate and effective contract which will proved a sound guide to dealing with their employees.

The contract between you and your new employee puts in writing the basic expectations and procedures which will guide your relationship. An employer has an obligation to make certain terms and conditions of employment clear to employees. Much of this will be covered as you discuss your contract.

Can I change the details of an award?

In general the answer to this question is NO.
Where an awards exists, you have to offer your employees wages and conditions that meet State and Federal Award standards, as a minimum. You can offer above those minimum standards, and many farmers do this to attract good staff.

To make a significant change to an award you would have to negotiate an Australian Workplace Agreement (AWA) or Certified Agreement.

There are two main differences between A.W.A.s and certified agreements:

• AWAs are individual agreements, whereas certified agreements are collective. That is, even though AWAs can be made with a group of employees, they only apply to those employees who sign them. A certified agreement, on the other hand, will apply to all employees in a group, provided that a majority of those employees have endorsed it; and
• AWAs are assessed and approved by the Employment Advocate, whereas certified agreements are assessed and approved by the Australian Industrial Relations Commission.

Both AWAs and certified agreements must meet the same No-disadvantage test. The No-disadvantage Test is a test conducted by the Office of the Employment Advocate. It determines whether an AWA disadvantages employees in relation to their terms and conditions of employment. An AWA fails to meet the test if its approval would result, on balance, in a reduction in the overall terms and conditions of employment of those employees under an award or law of the Commonwealth, or of a State or Territory that the employment advocate considers relevant. The employment advocate will not approve an AWA if it fails to pass the No-disadvantage Test.

Under the Workplace Relations Act 1996, appropriate employers and employees can choose whether they prefer AWAs, a certified agreement with a union, a certified agreement with employees or to remain under an award. It is also possible to have a combination of these at the same workplace.

There are only certain categories of employers who can make AWA’s and Certified Agreements.

To have legal effect under the Workplace Relations Act 1996, one of the following must apply when an AWA is filed:

• the employer is a constitutional corporation;
• the employer is the Commonwealth;
• the employee's primary workplace is in a Territory;
• the employer and employee are in Victoria;
• the employer is a waterside employer, the employee is a waterside worker, and the employment is in connection with interstate/overseas trade or commerce; or
• the employee is a maritime worker or a flight crew officer, and the employment is in connection with interstate/overseas trade or commerce.

For more information on Australian Workplace Agreements and Certified Agreement see the website for the Office of Employment Advocate

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