Back to Basics! Understanding the NES and Modern Wage Structures in Australia
Australia’s workplace relations framework provides a clear foundation for employment conditions. At its core are the National Employment Standards (NES), supported by modern awards, enterprise agreements, and decisions of the Fair Work Commission. For clients of The BelRose Group, understanding these elements is essential not only for compliance but also for creating a fair, stable, and attractive workplace where people want to contribute and grow.
“Australia’s workplace standards are more than compliance measures. When employers embed the NES and modern wage structures into everyday practice, they create fairness, stability, and workplaces where people choose to stay and thrive.”
The 12 Core Entitlements Every Employer Must Honour
The NES, established under the Fair Work Act 2009, sets out minimum conditions for all employees. These entitlements cannot be reduced or removed through agreements or contracts, and they form the baseline for every employment relationship.
The NES covers:
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Ordinary hours of work – 38 hours per week, plus reasonable additional hours.
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Flexible work arrangements – Requests may be made by eligible employees such as carers, people over 55, those with a disability, and individuals affected by family or domestic violence.
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Casual conversion – A structured pathway enabling eligible casual employees to convert to permanent employment.
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Parental leave – Up to 52 weeks of unpaid leave, with the option to request a further 52 weeks.
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Annual leave – 4 weeks of paid leave annually (5 weeks for shift workers).
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Personal, compassionate, and family and domestic violence leave – 10 days of paid personal leave, 2 days of paid compassionate leave, and 10 days of paid family and domestic violence leave each year.
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Community service leave – For activities such as jury duty or emergency service.
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Long service leave – Based on state or territory legislation.
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Public holidays – Paid time off, with a right to reasonably refuse to work.
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Termination notice and redundancy pay – Up to 5 weeks’ notice and up to 16 weeks’ redundancy pay, depending on length of service.
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Information statements – Employers must provide the Fair Work Information Statement and Casual Employment Information Statement.
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Superannuation – Compulsory employer contributions, currently 12% in 2025/26.
Employers must view the NES as a non-negotiable compliance requirement and integrate these conditions into all employment practices.
Modern Awards and Enterprise Agreements
Modern awards build upon the NES by providing industry or occupation-specific minimum pay rates and working conditions. They cover:
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Minimum wage rates and skill-based classifications
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Hours of work, rostering, allowances, and leave loadings
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Consultation processes and dispute resolution provisions
Enterprise agreements, negotiated at the workplace level, must pass the Better Off Overall Test (BOOT). This ensures employees remain no worse off than if the relevant award applied.
Wages Update for 2025/26
The Fair Work Commission’s annual wage review has delivered the following updates:
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The national minimum wage has increased by 3.75% to $915.90 per week or $24.10 per hour.
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Minimum award rates have risen by 3.75%.
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Casual loading for award-free employees remains at 25%.
Labour Hire and Gig Economy Reforms
From November 2024, the Fair Work Commission can issue labour hire arrangement orders. These ensure labour hire employees are paid the same as directly employed staff performing comparable work covered by an enterprise agreement.
Additionally, new provisions now protect employee-like workers in the gig economy and road transport sectors, improving standards and strengthening job security.
Practical Advice for Employers
At The BelRose Group, we encourage employers to take a proactive approach:
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Audit contracts and award coverage – Confirm every employee is correctly classified and remunerated under the right award or agreement.
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Review HR and payroll systems – Ensure systems accurately track leave accruals, casual conversion eligibility, and NES compliance.
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Communicate clearly – Provide required Fair Work Information Statements and explain entitlements to employees to avoid misunderstandings and risks.
Complying with minimum standards goes beyond avoiding penalties. It is about building trust, transparency, and fairness in the workplace.
How The BelRose Group Can Help
The BelRose Group are experienced in every aspect of employment compliance. Whether you need assistance interpreting the NES, applying award provisions, conducting a payroll audit, or reviewing employment agreements, our team is here to support you.
Creating fair and compliant workplaces ensures stronger employee engagement and positions your organisation as an employer of choice.