How to work out which modern award applies to your job in Australia

There are over 120 modern awards covering different industries and occupations. Working out which one applies to your job depends on the type of business you work for, the duties you perform, and where your work fits within the award's classification structure.

How are awards identified?

Each modern award has:

• A name (for example, "Hospitality Industry (General) Award 2020")
• A short reference code (MA000009 for Hospitality, MA000028 for Horticulture)
• A coverage clause that defines who the award applies to
• A classification structure that sets pay levels within the award

The Fair Work Ombudsman maintains the public list of awards and the rates that apply under each one.

The three-step test for identifying your award

To work out which award applies, work through three questions:

1. What industry does my employer operate in? A hotel is in the accommodation/hospitality industry. A stand-alone cafe is in the restaurant industry. A fruit farm is in horticulture.
2. What is the principal purpose of my work? Even within the same industry, different roles can fall under different awards. A receptionist in a hotel might be covered by the Hospitality Award; an admin staff member at the same hotel head office might be covered by the Clerks Award.
3. What classification within the award matches my duties? Each award has a graded classification structure. The right classification depends on the actual work performed, not the job title.

The most common awards for working holiday makers

The awards that apply to most working holiday maker jobs are:

• Hospitality Industry (General) Award - MA000009: hotels, motels, hostels, bars in hotels, function centres, caravan parks
• Restaurant Industry Award - MA000119: stand-alone restaurants, cafes, brunch venues
• Fast Food Industry Award - MA000003: fast food chains, take-away outlets, food courts
• Horticulture Award - MA000028: fruit picking, vegetable harvesting, packing, vine and tree work
• General Retail Industry Award - MA000004: retail shops, supermarkets, department stores
• Pastoral Award - MA000035: livestock work, broadacre cropping, shearing
• Cleaning Services Award - MA000022: contract cleaning, hotel cleaning by labour hire
• Building and Construction General On-site Award - MA000020: construction labouring, trades assistant work
• Aged Care Award - MA000018: support work in residential aged care

A working holiday maker who does three different jobs in a year may be covered by three different awards.

What if my employer says no award applies?

This is almost always wrong. The legal default is that an award applies unless one of the following is true:

• The employer is covered by an enterprise agreement (a workplace-specific agreement that has been formally approved by the Fair Work Commission and overrides the award)
• You are in a senior management role above the highest classification in the award
• You are an independent contractor with a genuine ABN-based contract (see our article on the difference between an employee and a contractor)

If none of these applies, an award applies. Employers who insist "we don't follow the award" are almost always breaching the law.

How do you find your classification?

Each award has a classification structure that defines the levels within the award. The classification depends on:

• The level of skill required for the duties
• The level of responsibility
• Whether you supervise others
• Years of experience in the industry (in some awards)

Job titles do not determine classification. A worker called a "manager" who actually does the same tasks as a Level 2 employee is classified at Level 2, not at a manager level. Employers cannot use a job title to push you into a lower-paid classification when your actual work fits a higher one.

The Introductory level rule

Most awards have an Introductory level for workers in their first three months in the industry. After three months, you must be moved up automatically unless there is a genuine reason for further training. Many working holiday makers are kept at Introductory level for the entire visa period, which is a clear breach in most cases.

What about the Better Off Overall Test (BOOT)?

If your employer has an enterprise agreement, the agreement must leave each employee Better Off Overall than under the relevant award. Where an enterprise agreement applies, it usually adopts the award structure but adds extras like higher base pay, extra leave, or improved penalty rates. An enterprise agreement that leaves workers worse off than the award is not legally enforceable.

How does this affect your tax position?

If you have been classified wrongly or paid below your correct classification, the wages you should have received are higher than what was reported to the ATO. Recovering the underpayment increases:

• The taxable income on your tax return
• The super contributions the employer should have paid
• Your eventual DASP when you leave Australia

How does our service support award reviews?

For every working holiday maker who lodges through our service, our team:

• Identifies the modern award that applies to each job
• Cross-checks payslips against the correct award classification and rate
• Identifies underpaid wages, missing penalty rates, and missing allowances
• Reconciles ATO-reported income against what should have been paid
• Lodges the tax return using the correct income figures

Award identification is the foundation of every wage recovery process. Get in touch with our team if you are uncertain which award covers your work or whether you have been paid correctly.