Modern Awards are legally binding documents that set minimum pay and conditions for employees in specific industries or occupations. There are 121 Modern Awards covering most Australian workers. If your employee is covered by an Award, you must meet or exceed its minimum terms — even if your employment contract says otherwise.
Finding the right Award is the first step. Use the Fair Work Ombudsman's "Find my Award" tool at fairwork.gov.au. Common Awards for small businesses include: Building and Construction General On-site Award, Plumbing and Fire Sprinklers Award, Electrical and Communications Award, General Retail Industry Award, Hospitality Industry Award, Clerks Private Sector Award, and the Professional Employees Award.
Each Award specifies: minimum hourly/weekly pay rates by classification level, penalty rates for evenings, weekends, and public holidays, overtime rates, allowances (tools, travel, uniform), leave entitlements beyond the NES minimums, and rostering and hours of work rules.
Pay rates are updated annually (usually 1 July) following the Fair Work Commission's Annual Wage Review. You must implement the new rates from the effective date — there is no grace period. Underpayment of Award entitlements, even unintentional, can result in back-pay orders and civil penalties.