How to Find the Right Modern Award for Your Employee

Every Australian national-system employee is either covered by a modern award, an enterprise agreement, or is award-free. Identifying which is the single most consequential decision an employer makes about a new hire — it determines minimum hourly rate, allowances, overtime, penalty rates, and shift loadings. Misclassification is the leading cause of underpayment, and underpayment is the leading driver of Fair Work Ombudsman investigations.

This guide walks through the correct method for finding the right modern award under Fair Work Act 2009 (Cth), Pt 2-3, using only Fair Work Commission and Fair Work Ombudsman tools.

What Is a Modern Award?

A modern award is an industry- or occupation-specific instrument made by the Fair Work Commission (FWC) under Fair Work Act 2009 (Cth), Pt 2-3. It sets minimum pay rates and additional employment conditions over and above the National Employment Standards. There are about 120 modern awards covering most Australian industries.

A modern award:

• Cannot reduce the NES (Fair Work Act 2009 (Cth), s.55(1));
• Specifies minimum hourly rates by classification (level/grade);
• Specifies penalty rates for weekend, public holiday, overtime, and shift work;
• Specifies allowances (e.g. tool, meal, travel);
• Applies to award-covered employees regardless of what the contract says.

Step 1. Identify the Employer’s Industry

Modern awards are organised primarily by industry. Start by identifying the principal industry of the employer’s business. The Australian and New Zealand Standard Industrial Classification (ANZSIC) categorisation is a useful starting point — restaurants are “Food and Beverage Services” (ANZSIC 4511, 4512, 4513), graphic design firms are “Specialised Design Services” (ANZSIC 6924), construction is divided across multiple ANZSIC classes.

If a business operates in multiple industries (e.g. a chain of cafés that also runs catering events), the employer may need to apply more than one award depending on the role of each employee.

Step 2. Identify the Employee’s Role

Each modern award contains a classification structure — usually in a schedule near the back of the award (often Schedule A or Schedule B). The classification structure lists levels (Level 1, Level 2, etc.) with descriptors of typical duties.

Match the employee’s actual role description against the classification descriptors. The relevant question is what the employee does, not their job title. A “Senior Coordinator” in a clerical role is classified by the duties performed, not by the seniority label.

For multi-skilled employees, apply the classification corresponding to the highest skill regularly performed.

Step 3. Use the FWO “Find My Award” Tool

The Fair Work Ombudsman’s Find My Award tool is the recommended starting point:

https://www.fairwork.gov.au/employment-conditions/awards/list-of-awards

The tool walks through:

1. Industry of the business;
2. Type of work performed by the employee;
3. State or territory of work;
4. Casual / full-time / part-time status.

It then suggests a likely award and links to the award document and the FWC Pay Database.

Step 4. Cross-Check via the FWC Modern Award Coverage Page

Confirm using the Fair Work Commission’s coverage tool:

https://www.fwc.gov.au/modern-award-coverage

The FWC page describes coverage clauses and exclusions for each award. For example, the Hospitality Industry (General) Award 2020 (MA000009) covers hospitality workers in hotels, motels, casinos, restaurants, but excludes employees covered by the Restaurant Industry Award 2020 in restaurant-only operations. The FWC coverage notes are authoritative where the FWO tool’s industry-based suggestion is ambiguous.

Step 5. Confirm the Classification and Pay Rate

Once the award is identified:

1. Open the award document via the FWC website.
2. Navigate to the classification schedule (usually near the back).
3. Read each classification descriptor carefully and match the employee’s actual duties.
4. Note the classification level (e.g. “Hospitality — Level 3”).
5. Look up the current hourly rate using the FWC Modern Awards Pay Database at https://www.fwc.gov.au/work-conditions/awards/modern-awards-pay-database.

Pay rates change annually following the Annual Wage Review (Fair Work Act 2009 (Cth), s.285), with new rates effective from the first full pay period on or after 1 July each year. The 2026 Annual Wage Review decision is at https://www.fwc.gov.au/hearings-decisions/major-cases/annual-wage-reviews/annual-wage-review-2026.

Step 6. Apply Loadings and Penalty Rates

Once the base hourly rate is fixed, apply:

• Casual loading — typically 25% on top of the ordinary hourly rate (Fair Work Act 2009 (Cth), s.15A; modern award);
• Overtime — typically time-and-a-half for the first 2 hours, double-time thereafter (per the award);
• Weekend penalty rates — Saturday and Sunday rates are award-specific;
• Public holiday rate — typically 250% of base for hours worked on a public holiday;
• Shift loadings — afternoon shift, night shift, weekend shift loadings are award-specific;
• Allowances — tool, meal, travel, first-aid, leading-hand allowances.

Step 7. Compare Against the National Minimum Wage

The minimum pay rate for any employee is the higher of:

• The applicable modern award rate (with allowances and loadings); or
• The National Minimum Wage set annually by the FWC under s.285.

National Minimum Wage effective 1 July 2025: A$24.95 per hour or A$948 per 38-hour week. Reference: https://www.fairwork.gov.au/pay-and-wages/minimum-wages.

For award-free employees (no applicable modern award), the National Minimum Wage applies as the floor, plus any common-law contract terms.

Step 8. Document the Award in the Employment Contract

The employment contract should clearly state:

1. The applicable modern award name and code (e.g. “Hospitality Industry (General) Award 2020 (MA000009)”).
2. The classification level (e.g. “Hospitality — Level 3”).
3. The status (full-time / part-time / casual).
4. The hourly rate (which must equal or exceed the award minimum).
5. A statement that, if any inconsistency arises between the contract and the applicable award, the award prevails as required by Fair Work Act 2009 (Cth), s.55.

Common Mistakes

When the Award Choice Is Genuinely Ambiguous

For multi-industry employers, multi-role employees, or new business types not clearly covered by an existing award, two paths exist:

1. Application to the FWC for an interpretation under Fair Work Act 2009 (Cth), s.157 — slow and expensive.
2. Pragmatic approach — apply the most likely award, document the reasoning, pay at the higher of the two candidate rates if both could apply, and adjust as needed.

Most employer underpayment cases are not edge-case classification questions but failure to apply any award where one clearly applies.

Conclusion

Finding the right modern award is a four-tool process: FWO Find My Award → FWC Modern Award Coverage → FWC Pay Database → award document classification schedule. The combination of industry-first identification and duties-based classification produces a defensible answer for the vast majority of Australian employees. The discipline of recording the award name, code, and classification level in the employment contract, paired with a 1 July calendar reminder for Annual Wage Review updates, prevents the silent drift into underpayment that the Fair Work Ombudsman targets.

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Disclaimer

Legal information, not legal advice. MmowW Scrib🐮 is operated by a licensed Gyoseishoshi (行政書士) office in Japan. We are not solicitors, barristers, or migration agents.

Sources

• Fair Work Ombudsman — Awards: https://www.fairwork.gov.au/employment-conditions/awards
• FWO — List of awards: https://www.fairwork.gov.au/employment-conditions/awards/list-of-awards
• FWC — Modern award coverage: https://www.fwc.gov.au/modern-award-coverage
• FWC — Modern Awards Pay Database: https://www.fwc.gov.au/work-conditions/awards/modern-awards-pay-database
• FWO — Minimum wages: https://www.fairwork.gov.au/pay-and-wages/minimum-wages