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Fair Work Awards & Modern Award Payroll Compliance

Fair Work Awards and Modern Award payroll compliance in e-PayDay Go payroll software

e-PayDay Go® provides access to Fair Work Modern Awards and classifications to support accurate Australian payroll processing.

Fair Work Awards, also known as Modern Awards, set minimum pay rates and employment conditions for employees across many Australian industries and occupations.

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For employers, correctly identifying the applicable Modern Award, employee classification and minimum pay entitlements is an important part of payroll compliance. Award requirements can affect minimum wages, ordinary hours, overtime, penalty rates, allowances, casual loading and other employment conditions.

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e-PayDay Go® is award-centric Australian payroll software supporting all 122 Fair Work awards and their classifications, helping employers access the information they need when processing payroll.

Whether you need to understand which Fair Work Award applies, review a classification or check current award information, this Fair Work Awards hub provides a starting point for navigating Australia's Modern Award system.

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Explore Fair Work Awards and payroll compliance information below.

What Are Fair Work Awards?

 

Fair Work Awards, also known as Modern Awards, are legal documents that set minimum pay rates and employment conditions for employees in particular industries and occupations across Australia.

 

Modern Awards operate alongside the National Employment Standards (NES) and can set minimum entitlements for:

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  • Minimum rates of pay

  • Employee classifications

  • Hours of work

  • Rosters and breaks

  • Overtime

  • Penalty rates

  • Allowances

  • Casual employment and applicable loadings

  • Other industry or occupation-specific employment conditions

 

An employee's applicable Fair Work Award and classification can directly affect how they should be paid. Different classifications within the same award may have different minimum rates, while an employee's hours, employment type and when they work can affect other award entitlements.

 

Most Modern Awards are based on an industry or occupation. An employer may also have employees covered by different awards depending on the work each employee performs.

 

Not every employee is necessarily covered by a Modern Award. Some employees may be covered by an enterprise agreement, while others may be award and agreement-free. Regardless, employees remain entitled to applicable minimum workplace entitlements under Australian workplace laws.

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Understanding whether an award applies — and identifying the correct classification — is therefore an important first step towards accurate payroll and wage compliance.

How Do I Know Which Fair Work Award Applies?

 

Determining the correct Fair Work Award starts with understanding the employer's industry and the work actually performed by the employee.

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Most Modern Awards are industry-based, while some are occupation-based. In some circumstances, an employer may have employees covered by different awards because they perform different types of work.

 

To determine which Modern Award may apply, consider:

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  • The employer's industry and the type of business being operated

  • The employee's occupation and duties

  • The Award's coverage clause, including any exclusions

  • Whether the award contains a classification that matches the work performed

  • Whether another Modern Award or a registered agreement applies

 

Once the applicable award has been identified, the employee's duties should be compared with the classification descriptions within that award. The classification can determine the minimum rate of pay and may affect other award entitlements.

 

An employee's job title alone does not necessarily determine their award or classification. What matters is whether the employer and employee fall within the award's coverage and how the employee's work relates to the relevant classification descriptions.

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Employers who are unsure which award applies can use the Fair Work Ombudsman's Find my award and Pay and Conditions Tool (PACT) and review the coverage provisions of the relevant award.

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Correctly identifying the applicable award and classification provides the foundation for accurate payroll processing and wage compliance.

What Do Modern Awards Cover?

 

Modern Awards set minimum pay rates and employment conditions for employees covered by the award. The specific requirements vary between awards, industries, occupations and employee classifications.

 

Depending on the applicable Modern Award, these requirements can include:

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  • Minimum rates of pay – including different rates according to an employee's classification, experience, qualifications or other applicable criteria.

  • Employee classifications – defining different levels of work, responsibilities, skills or qualifications within the award.

  • Ordinary hours of work – including when ordinary hours may be worked and how they are arranged.

  • Overtime – including when overtime applies and the applicable overtime rates.

  • Penalty rates – which may apply when employees work weekends, public holidays, evenings, early mornings or other specified times.

  • Allowances – such as allowances relating to particular duties, clothing, tools, vehicles, travel or working conditions.

  • Casual employment – including applicable casual loading and other award-specific provisions.

  • Rosters and breaks – including requirements relating to rostering, meal breaks and rest breaks.

  • Other award-specific conditions – depending on the industry, occupation and particular Modern Award.

 

These conditions can interact when processing payroll. An employee's award, classification, employment type, hours worked, and when those hours are worked can all be relevant when determining the employee's minimum entitlements.

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For this reason, checking only an employee's base hourly rate may not be enough. Employers need to consider the terms of the applicable Modern Award together with the National Employment Standards (NES) and any other workplace arrangements that apply.

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The Fair Work Ombudsman's Pay and Conditions Tool (PACT) and award pay guides can be used to check minimum pay rates, penalty rates and allowances for applicable awards.

Fair Work Award Pay Rates and the Annual Wage Review

 

Fair Work Award pay rates can change over time, so employers need to ensure they are using the current minimum rates when processing payroll.

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Each year, the Fair Work Commission conducts an Annual Wage Review to review the National Minimum Wage and minimum wages contained in Modern Awards. Changes resulting from the review generally take effect from the first full pay period starting on or after 1 July.

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Following the 2026 Annual Wage Review, minimum wages in Modern Awards increased by 4.75%. For most award-covered employees, the new minimum rates applied from the first full pay period starting on or after 1 July 2026.

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However, the Annual Wage Review is not the only reason an award rate or entitlement may change. Modern Awards can also be varied, and changes to classifications, allowances or other award provisions may occur separately.

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Employers should therefore check the current version of the applicable Modern Award and the employee's classification, rather than relying on an old pay rate, payroll record or previously downloaded pay guide.

 

The Fair Work Ombudsman's Pay and Conditions Tool (PACT) and current award pay guides can be used to check minimum pay rates, penalty rates and allowances.

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Keeping award information current is an important part of accurate payroll processing and wage compliance.

Why Correct Fair Work Award Classifications Matter for Payroll

 

Identifying the applicable Modern Award is only part of the process. Employers also need to determine the correct award classification for each employee.

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Award classifications, sometimes described as levels or grades, identify different types and levels of work within a Modern Award. Depending on the award, a classification may take into account factors such as:

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  • Duties and responsibilities

  • Skills and competencies

  • Qualifications and training

  • Experience

  • Level of supervision required

  • Responsibility for supervising other employees

 

An employee's classification is important because it can determine their minimum rate of pay under the applicable Modern Award.​

Modern Award classification and minimum pay rate workflow in e-PayDay Go payroll software

From Modern Award classification to minimum pay rate and payroll processing in e-PayDay Go®.

Classifications should not necessarily be treated as a one-time decision. An employee's classification may need to be reviewed when their role changes, they take on additional responsibilities, complete relevant training, obtain new qualifications or progress beyond an introductory classification.

 

For example, an employee who begins supervising other employees or performing work requiring greater skills and responsibility may need to be considered against a different classification within the applicable award.

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Employers should therefore compare the employee's actual role and duties with the classification descriptions in the current Modern Award, rather than relying solely on a job title.

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Correctly identifying and maintaining employee classifications helps provide the foundation for accurate pay rates, payroll processing and wage compliance.

Fair Work Awards Supported by e-PayDay

 

e-PayDay Go® is award-centric Australian cloud payroll software with every Fair Work Modern Award and its classifications available directly within the payroll system.

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Modern Award information is sourced in real time, giving employers access to current published award and classification information while setting up and maintaining their payroll.

 

Within e-PayDay Go®, you can:​

e-PayDay Go Fair Work Modern Awards and employee classifications payroll screen.

e-PayDay Go® provides Fair Work Modern Awards and classifications directly within the payroll workflow.

  • Select the applicable Fair Work Modern Award

  • Select the employee's classification from the classifications available for that award

  • Access the applicable minimum hourly rate based on the selected Award and classification

  • Access relevant Award information directly from the payroll workflow

  • Access the Fair Work Pay and Conditions Tool (PACT)

  • Receive notifications when Fair Work Commission minimum hourly rates change

  • Use the Update Awards functionality to assist with implementing applicable Award rate changes

 

This brings Modern Award information closer to the payroll process, reducing the need to maintain separate static Award and classification tables outside your payroll software.

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Importantly, e-PayDay Go® does not determine which Modern Award or classification applies to an employee. The employer must identify the appropriate Award and classification based on the employee's circumstances and the applicable Fair Work requirements.

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Once the appropriate Award and classification have been determined, e-PayDay Go® provides an award-centric payroll environment for maintaining that information as part of the employee's payroll setup.

Explore Fair Work Awards

 

Australia's Modern Awards cover employees across a wide range of industries and occupations. Each

 

Award contains its own coverage provisions, classifications, minimum pay rates and employment conditions.

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Use the Fair Work Award resources below to learn more about individual Awards and how they relate to payroll.​

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Clerks – Private Sector Award

Includes the Clerks – Private Sector Award [MA000002].

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The Clerks Private Sector Award covers many employees performing clerical and administrative work in the private sector, subject to the Award's coverage provisions. 

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Explore the Clerks – Private Sector Award

Barista

Hospitality Industry

Includes the Hospitality Industry (General) Award [MA000009].

 

The covers specified employers and employees working in the hospitality industry, including classifications and employment conditions relevant to hospitality work.

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Explore the Hospitality Industry (General) Award 

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Vehicle
Industry

Includes the Vehicle Repair, Services and Retail Award [MA000089].

 

The Vehicle Repair, Services and Retail Award covers specified employers and employees working across areas of the vehicle repair, service and retail industry.​

 

Explore the Vehicle Repair, Services and Retail Award

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Pastoral
Industry

Includes the Pastoral Award [MA000035].

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The Pastoral Award covers employers and employees across specified sectors of Australia's pastoral industry and contains classifications and provisions relevant to agricultural work.

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Explore the Pastoral Award

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General Retail Industry

Includes the General Retail Industry Award [MA000004].

 

The General Retail Industry Award covers many employers and employees working in the retail industry and includes classifications for different types and levels of retail work.

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Explore the General Retail Industry Award

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Transport
Industry

Includes the Road Transport and Distribution Award [MA000038].

 

The Road Transport and Distribution Award covers specified employers and employees involved in road transport and distribution operations.

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Explore the Road Transport and Distribution Award

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Horticulture Industry

Includes the Horticulture Award [MA000028].

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The Horticulture Award covers specified employers and employees working in Australia's horticulture industry, including classifications and employment conditions relevant to horticultural work.

 

Explore the Horticulture Award

Sheep

Shearers and Crutchers

Employees performing shearing, crutching and related work may be covered by provisions and classifications contained within the Pastoral Award [MA000035].

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Explore payroll information for Shearers and Crutchers

As we expand the e-PayDay Fair Work Award resources, this hub will provide access to additional Modern Award and payroll information for Australian employers.

Fair Work Awards and Payroll Compliance

 

Complying with a Modern Award involves more than checking an employee's minimum hourly rate. Depending on the applicable Award and the employee's circumstances, payroll may also need to account for overtime, penalty rates, allowances, casual loading and other applicable entitlements.

 

Employers also have obligations to make and keep accurate employee records and provide employees with payslips containing prescribed information. Payroll records can provide important evidence of how employees have been paid and whether applicable workplace entitlements have been met.

 

For Award-covered employees, accurate payroll therefore starts with maintaining reliable information about the employee's:

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  • Applicable Modern Award

  • Award classification

  • Employment type

  • Ordinary hours and hours worked

  • Rate of pay

  • Overtime and penalty rates, where applicable

  • Allowances and other applicable payments

 

These records become particularly important when Award rates change, an employee progresses to another classification, their duties change or an employer reviews historical payroll information.

 

Payroll software can assist employers with maintaining payroll records and applying the payroll information they have established, but software does not replace the employer's responsibility to understand and comply with applicable workplace laws, Modern Awards and employment arrangements.

 

For a broader explanation of payroll obligations—including employee records, payslips, PAYG withholding, superannuation and Single Touch Payroll—see our Payroll Compliance Guide for Australian Employers.

Fair Work Awards and the Voluntary Small Business Wage Compliance Code

 

Accurate Award information, employee classifications, payroll records and regular pay-rate reviews are important parts of wage compliance for employers of every size.

 

The Voluntary Small Business Wage Compliance Code provides a framework specifically for small business employers with fewer than 15 employees. Where a small business has complied with the Code in relation to an underpayment, the Fair Work Ombudsman will not refer that conduct for possible criminal prosecution as an intentional underpayment offence.

 

The Code does not remove an employer's obligation to correctly pay employees. Underpayments must still be rectified, and compliance with the Code does not prevent other enforcement action that may be available under workplace laws.

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What Does the Wage Compliance Code Expect from Small Businesses?

 

Compliance is assessed by considering the overall circumstances and actions of the employer, rather than relying on a single step.

 

Relevant practices can include:

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  • Checking the correct Modern Award and employee classification

  • Keeping up to date with minimum pay rates and Award changes

  • Keeping accurate payroll and employment records

  • Providing compliant payslips

  • Seeking reliable information or professional advice when unsure about workplace obligations

  • Reviewing payroll practices when circumstances change

  • Acting promptly to investigate and correct mistakes

  • Paying employees any amounts identified as owing

 

These practices can help a small business demonstrate that it has taken reasonable steps to understand and meet its workplace obligations.

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What About Employers with 15 or More Employees?

 

The Voluntary Small Business Wage Compliance Code's specific protection applies to eligible small business employers with fewer than 15 employees. Employers with 15 or more employees cannot rely on the Code for that protection.

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However, wage compliance is not only a small business issue.

 

Employers of all sizes need appropriate processes for identifying applicable Modern Awards and classifications, maintaining accurate payroll records, monitoring changes to minimum entitlements and identifying and correcting payroll errors.

 

For larger employers, effective payroll governance, controls and compliance processes can become even more important as employee numbers, Awards, classifications, locations and payroll arrangements become more complex.

 

e-PayDay Go® supports Australian employers with Fair Work Modern Award and classification information directly within the payroll workflow. Its Award functionality is not limited to businesses with fewer than 15 employees—the Small Business Wage Compliance Code is one compliance framework discussed on this page, not a limitation on who can use e-PayDay.

 

For more information about the Code and practical steps employers can take, read our Voluntary Small Business Wage Compliance Code guide.

How e-PayDay Supports Fair Work Award Payroll

 

Meeting Fair Work payroll obligations involves more than identifying an employee's Modern Award and classification. Employers also need to record working time, apply the appropriate types of payments and maintain accurate payroll records.

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e-PayDay Go® brings these elements together within an integrated Australian payroll platform.

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Fair Work Modern Awards and Classifications

 

e-PayDay Go® provides access to every Fair Work Modern Award and its classifications, with Award information sourced in real time.

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Once the employer has identified the appropriate Award and classification, this information can be maintained as part of the employee's payroll setup.

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300+ Configurable Pay Type Templates

 

Over 300 template Pay Types are included to help employers meet Fair Work payment requirements and ATO Single Touch Payroll reporting requirements.

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Pay Types include:

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  • Pay Rates

  • Allowances

  • Deductions

  • Reimbursements

 

The templates contain predefined characteristics and are ready to use across a wide range of payment scenarios, including worked hours, leave, termination payments, and lump-sum payments.

 

Pay Types can also be configured where an employer needs to accommodate particular payroll requirements.

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This flexibility is particularly important because complying with a Modern Award can involve more than applying an employee's ordinary hourly rate. Different payments may need to be processed and recorded appropriately while also meeting applicable ATO STP reporting requirements.

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Time and Attendance Records

 

Accurate Time and Attendance records are another important component of Fair Work compliance.

e-PayDay Go® includes e-Time™ Timesheets and integrates with ClockMeIn® Time and Attendance, enabling employers to capture and maintain employee working-time information and use approved timesheets as part of the payroll process.

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Time and Attendance information can be:

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  • Recorded directly in e-Time™ Timesheets

  • Captured using ClockMeIn®

  • Imported from compatible Time and Attendance hardware or software

  • Imported using supported CSV or text files

  • Reviewed and approved before payroll processing

 

Pay Rates and Allowances can be allocated to applicable time blocks, helping connect the employee's recorded working time with the information required to prepare the pay run.

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From Fair Work Information to Payroll Processing

 

Together, these capabilities provide an integrated workflow:

Modern Award or Agreement classification Time and Attendance Pay Types pay run and payroll records workflow

e-PayDay Go® connects Modern Award or Agreement information, classifications, Time and Attendance and configurable Pay Types with payroll processing and payroll records.

This allows employers to bring together Modern Award or Agreement information, employee classifications, recorded working time and configurable Pay Types within the same payroll environment.

 

e-PayDay Go® does not determine which Modern Award, Agreement, classification or employment entitlement applies to an employee. The employer remains responsible for determining and applying the employee's correct workplace entitlements. e-PayDay provides the payroll tools and Fair Work information needed to support that process.

Fair Work Awards Frequently Asked Questions

 

What is a Fair Work Modern Award?

 

A Modern Award is a legal document that sets minimum pay rates and employment conditions for employees in particular industries or occupations. Modern Awards operate alongside the National Employment Standards (NES) and can contain requirements covering classifications, ordinary hours, overtime, penalty rates, allowances, casual loading, breaks and other employment conditions.

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How do I know which Modern Award applies to an employee?

 

Award coverage generally depends on factors including the employer's industry, the employee's occupation and duties, and the coverage provisions of the Award. Employers should review the applicable Award and its classifications and can use the Fair Work Ombudsman's award-finding resources when determining coverage.

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How do I determine an employee's Award classification?

 

Employers should compare the employee's actual duties, responsibilities, skills, qualifications and experience with the classification descriptions contained in the applicable Modern Award.

A job title alone does not necessarily determine an employee's classification.

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Do Fair Work Award pay rates change?

 

Yes. Modern Award minimum pay rates can change. The Fair Work Commission conducts an Annual Wage Review each year, and Awards can also be varied at other times.

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Employers should therefore check current Award information rather than relying on previously downloaded rates or historical payroll information.

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Does e-PayDay automatically determine an employee's Modern Award or classification?

 

No. e-PayDay Go® does not automatically determine which Modern Award, Agreement or classification applies to an employee.

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The employer remains responsible for determining the employee's applicable workplace arrangements and entitlements. e-PayDay provides Fair Work Award information and payroll functionality to support that process.

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Does e-PayDay support Fair Work Modern Awards?

 

Yes. e-PayDay Go® provides access to every Fair Work Modern Award and its classifications, with Award information available within the payroll system.

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Employers can select the applicable Award and classification after determining which apply to the employee.

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Does e-PayDay support Agreements as well as Modern Awards?

 

Yes. e-PayDay Go® can accommodate Modern Awards and Agreements as part of an employee's payroll setup, allowing employers to maintain the relevant information within their payroll environment.

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How does e-PayDay help with Award-related payments?

 

e-PayDay includes over 300 configurable Pay Type templates covering Pay Rates, Allowances, Deductions and Reimbursements.

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These templates support a wide range of payroll scenarios, including worked hours, leave, termination payments and lump sum payments, while also supporting applicable ATO Single Touch Payroll reporting requirements.

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Can e-PayDay record employee Time and Attendance?

 

Yes. e-PayDay provides Time and Attendance functionality through e-Time™ Timesheets and ClockMeIn®, as well as supported import options.

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Recorded and approved working-time information can form part of the payroll process, helping employers maintain the information required to process employee payments and payroll records.

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Is e-PayDay only suitable for small businesses?

 

No. e-PayDay Go® is not limited to small businesses or employers with fewer than 15 employees.

 

The Voluntary Small Business Wage Compliance Code has specific provisions for eligible small business employers, but e-PayDay Go® can support payroll processing for employers of different sizes.

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Where can I check official Fair Work Award rates and conditions?

 

Employers can check current Awards, minimum rates and employment conditions using the Fair Work Ombudsman's Pay and Conditions Tool (PACT) and the official Award information published by the Fair Work Commission.

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