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Remaining private sector businesses are covered by Modern Awards from
1 February 2011

In January last year, the South Australian Government referred the remaining private sector businesses not already covered by the Federal workplace relations system, such as sole traders, partnerships with natural persons, trusts where the trustee is a natural person and some incorporated associations, to the Federal workplace relations system.

This meant that from 1 January 2010, all private sector businesses were covered by the Federal Fair Work Act 2009 and had to abide by the same rules and regulations on employment matters, including but not limited to termination of employment, leave entitlements, enterprise bargaining and industrial action.

However, in relation to awards, the businesses referred to the Federal workplace relations system were not immediately covered by Modern Awards. Instead, they retained their respective State Awards which became notional Federal instruments, referred to as ‘Division 2B State Awards’. These Division 2B State Awards were replaced by Modern Awards from 1 February 2011.

It is important to note that coverage of a Division 2B State Award may not correspond with the coverage of a Modern Award and the implementation of Modern Awards will not simply be a process of swapping an existing award with a Modern Award.

Identifying which Modern Awards will apply to a particular business will be determined by the work activities and/or persons employed within the business. In some cases, industries and groups of employees that are currently award-free (e.g. IT industry and Store Managers) may be covered by new Modern Awards.

Further, to assist these businesses in moving to the Modern Award system, conditions such as wages, penalties and loadings in Modern Awards can be phased under the following transitional provisions:

- all terms of Division 2B State Awards continue to operate until 31 January 2011;
- from 1 February 2011 the Modern Award commence, but Modern Award wages, penalties and loadings and industry allowances are phased in until 30 June 2014.

Businesses requiring further information about their coverage under the Modern Award system are encouraged to contact the Business Advisory Centre on
08 8300 0101.

Adelaide Office

Level 1
136 Greenhill Road Unley
South Australia 5061

P 08 8300 0000
F 08 8300 0001



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