When it comes to employment contracts, there are two common types of agreements that employers and employees enter into, namely awards and certified agreements. These agreements are put in place to establish the terms and conditions of employment, including pay rates, leave entitlements, and other benefits. As a professional, let`s dive deeper into this topic and explore the differences between each agreement.
An award is a legally binding document that sets out minimum pay rates, working conditions, and entitlements for employees in a particular industry or occupation. Awards are created by the Fair Work Commission and are specific to each industry or occupation. The objective of an award is to provide a safety net of minimum conditions for employees who may not have access to collective bargaining or individual contracts.
A certified agreement, on the other hand, is a negotiated agreement between an employer and employees (or their union). Certified agreements are tailored to suit the needs of a particular business or industry and can include terms and conditions that are above the minimum requirements set out in awards. Certified agreements need to be approved by the Fair Work Commission to be legally binding.
One key difference between awards and certified agreements is flexibility. Awards are less flexible and generally apply to all employees in a particular industry or occupation, regardless of their qualifications or experience. Certified agreements, on the other hand, can be tailored to meet the unique needs of a particular business or group of employees.
Another difference is the process for establishing each agreement. Awards are established by the Fair Work Commission and apply to all employers and employees in a particular industry or occupation. Certified agreements, however, are negotiated between an employer and employees or their union, and need to be approved by the Fair Work Commission to be legally binding.
When it comes to deciding whether to enter into an award or certified agreement, there are a few things to consider. For employers, certified agreements may be more advantageous if they have specific needs that are not met by an award. For employees, a certified agreement may offer better conditions and benefits than an award. However, it`s important to note that certified agreements only apply to a specific business or group of employees, whereas awards apply to all employers and employees in a particular industry or occupation.
In conclusion, awards and certified agreements are both valuable tools for establishing the terms and conditions of employment. While awards provide a minimum safety net for employees, certified agreements offer more flexibility and can be tailored to meet the unique needs of a particular business or group of employees. As always, it`s important for both employers and employees to carefully consider their options before entering into any employment agreement.