Fair Work Act 2009

A modern award must include terms (coverage terms) setting out the employers, employees, organisations and outworker entities that are covered by the award, in accordance with this section.

A modern award must be expressed to cover:

specified employers; and

specified employees of employers covered by the modern award.

A modern award may be expressed to cover one or more specified organisations, in relation to all or specified employees or employers that are covered by the award.

A modern award may be expressed to cover, but only in relation to outworker terms included in the award, specified outworker entities.

For the purposes of subsections (2) to (4):

employers may be specified by name or by inclusion in a specified class or specified classes; and

employees must be specified by inclusion in a specified class or specified classes; and

organisations must be specified by name; and

outworker entities may be specified by name or by inclusion in a specified class or specified classes.

Without limiting the way in which a class may be described for the purposes of subsection (5), the class may be described by reference to a particular industry or part of an industry, or particular kinds of work.

A modern award must not be expressed to cover classes of employees:

who, because of the nature or seniority of their role, have traditionally not been covered by awards (whether made under laws of the Commonwealth or the States); or

who perform work that is not of a similar nature to work that has traditionally been regulated by such awards.

For example, in some industries, managerial employees have traditionally not been covered by awards.

A modern award (other than a modern enterprise award) must be expressed not to cover employees who are covered by a modern enterprise award, or an enterprise instrument (within the meaning of the Transitional Act), or employers in relation to those employees.

This section does not apply to modern enterprise awards.

A modern award (other than a State reference public sector modern award) must be expressed not to cover employees who are covered by a State reference public sector modern award, or a State reference public sector transitional award (within the meaning of the Transitional Act), or employers in relation to those employees.

This section does not apply to State reference public sector modern awards.