1. State System
Applies to non constitutional corporations. Generally, if your business operates as a:
Sole Trader; or a
Partnership.
Relevant IR legislation:
Industrial Relations Act 1979;
Minimum Conditions of Employment Act 1993;
Employment Dispute Resolution Act 2008, and
Farm Employees Award 1985.
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2. National System Applies if your business is a:
National Systems Employer
(Constitutional Corporation)
Relevant IR legislation:
Fair Work Act 2009 (including the NES);
Fair Work Regulations 2009, and
Pastoral Award 2010.
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3. Legislation that applies to both systems
Occupational Safety and Health Act 1984 and Regulations;
Workers’ Compensation and Injury Management Act 1981;
Long Service Leave Act 1958;
Superannuation Guarantee (Administration) Act 1992 and Regulations (Cth);
Sex Discrimination Act 1984 (Cth);
Disability Discrimination Act 1992 (Cth);
Racial Discrimination Act 1975 (Cth);
Age Discrimination Act 2004 (Cth);
Equal Opportunity Act 1984; and
Human Rights and Equal Opportunity Commission Act (Cth).

4. Legislation – a brief overview
Minimum Conditions of Employment Act 1993
Fair Work Act 2009
National Employment Standards
38 hour per week plus reasonable additional hours
Personal/carer’s leave
Enterprise flexibility
Annual leave
Parental leave
Bereavement leave
Public Holidays
Personal/carer’s leave and Compassionate leave
Parental Leave
Community service leave
Significant changes/redundancy
Long service leave
Public holidays
Notice of termination/redundancy
NES information sheet
Maximum weekly hours of work - 38 hours per week, plus reasonable additional hours.
Requests for flexible working arrangements - allows parents or carers of a child under school age or of a child under 18 with a disability, to request a change in working arrangements to assist with the child’s care.
Parental leave and related entitlements - up to 12 months unpaid leave for every employee, plus a right to request an additional 12 months unpaid leave, and other forms of maternity, paternity and adoption related leave. 
Annual leave - 4 weeks paid leave per year, plus an additional week for certain shift workers.
Personal / carer’s leave and compassionate leave - 10 days paid personal / carer’s leave, two days unpaid carer’s leave as required, and two days compassionate leave (unpaid for casuals) as required.
Community service leave - unpaid leave for voluntary emergency activities and leave for jury service, with an entitlement to be paid for up to 10 days for jury service.
Long service leave - a transitional entitlement for employees who had certain LSL entitlements before 1/1/10 pending the development of a uniform national long service leave standard.
Public holidays - a paid day off on a public holiday, except where reasonably requested to work.
Notice of termination and redundancy pay - up to 4 weeks notice of termination (5 weeks if the employee is over 45 and has at least 2 years of continuous service) and up to 16 weeks redundancy pay, both based on length of service.
Provision of a Fair Work Information Statement - employers must provide this statement to all new employees. It contains information about the NES, modern awards, agreement-making, the right to freedom of association, termination of employment, individual flexibility arrangements, right of entry, transfer of business, and the respective roles of Fair Work Australia and the Fair Work Ombudsman.

5. What is a contract of employment?

6. The “iceberg” contract
EXPRESS
TERMS
Common Law
IMPLIED TERMS
Award
Legislation

7. Verbal or Written?
The challenge with wholly verbal contracts is they can be:
Misinterpreted;
Misunderstood; and/or
Miscommunicated.
Behind every verbal contract are a number of unspoken assumptions that expose your business to risk.

8. Recommendation
Write down the agreed “express terms” of the contract into a letter of offer
Your express terms cannot undermine the “implied terms” of the contract (the relevant award and legislation)

9. Letter of Offer - Template
Please refer to the template letter of offer provided.
Access a copy online from:
s/pages/employing-staff.aspx
Amend the template to suit your business needs

10. Letter of Offer
You might include the following “express terms” in your letter of offer:
Start date;
Type of employment (if fixed term put an end date);
Remuneration;
Hours of work;
Food arrangements;
Housekeeping expectations; and
Others terms specific to your operations.

11. Understanding your Award

12. Hours of Work and Overtime
Farm Employees Award 1985
Pastoral Award 2010
Clause 7
Part 4 – Clauses 30 and 31
Hours of work to be negotiated between employee and employer
38 hours per week
Averaged over 4 week period
Employee to receive at least one full day off each week subject to necessary attention to stock
Excess hours will attract overtime at a rate of time and half (150%)
No provision for overtime
Overtime on Sundays is double time (200%)
MinCon specifies 38 hours per week plus reasonable additional
Employees may elect time off in lieu of overtime payments
Employee must make the request for overtime to be entitled to receive it

13. Minimum Engagement Periods
Farm Employees Award 1985
Pastoral Award 2010
No provision
Clauses 10.3 and 10.4
3 hours per shift for casual and part time employees

14. Public Holiday Penalties
Farm Employees Award 1985
Pastoral Award 2010
No penalties
Clause 32
Work performed on public holidays attracts a penalty of double time (200%)

15. Allowances Farm Employees Award 1985 Pastoral Award 2010 Clause 13
Not really an allowance, however, all protective clothing must be provided by the employer (including gum boots)
Wet Work
Meals
Tool and Equipment
Travelling
Protective Clothing
First Aid
Use of Personal Vehicle
Leading Hand

16. Special Penalties Farm Employees Award 1985 Pastoral Award 2010
No provision
Clause 29
An additional 17% for:
Jetting or spraying sheep; or
Swabbing sheep for more than 3 days
A weekly allowance of $11.82 is payable to employees who must provide their own horse and saddle
A weekly allowance agreed between the parties plus license/registration fees for any dog(s) owned by the employee that are used for sheep or cattle work purposes

17. Charges to the Employee
Farm Employees Award 1985
Pastoral Award 2010
Clause 12
Clause 17
$45.60 per week for board and lodging
Reasonable costs for accommodation, meat, goods and services.

18. Meal Breaks Farm Employees Award 1985 Pastoral Award 2010 No provision
Clause 15
30 minute break after 5 hours of work
Or at a time mutually agreed between parties
If a break isn’t provided, double time (200%) is applicable until the break is taken
Paid rest break of 10 minutes each morning
Additional rest breaks are unpaid

19. Leave
Farm Employees Award 1985
Pastoral Award 2010
Clauses 8, 9 and 11
Clauses 23, 24 and 25
10 days personal/carer’s leave
4 weeks annual leave
17.5% annual leave loading
2 days of paid bereavement leave per occasion, including casuals
2 days of paid compassionate leave per occasion, excluding casuals
Parental Leave and other leave entitlements come from the relevant legislation:
Fair Work Act 2009 OR
Minimum Conditions of Employment Act 1993

20. Employer Notice Periods*
If employee is over 45years and served more than two years = additional week notice
Period of Continuous Service
Notice Required
Not more than one year
1 week
More than one year but less than three years
2 weeks
More than three years but less than five years
3 weeks
More than 5 years
4 weeks

21. Employee Notice Periods
Farm Employees Award 1985
Pastoral Award 2010
No provision
Clause 12
Same periods as required by the employer
Additional week for employees over 45 doesn’t apply

22. Current Wage Rates Farm Employees Award 1985
General Farm Hand or Farm Tradesperson
Weekly Rate
$627.70
Hourly Rate
$16.52
Casual Hourly Rate (20% loading)
$19.82

23. Current Wage Rates Pastoral Award 2010
Wage rates applicable from 1 July 2012
Broadacre Farming and Livestock Operations Employees
Classification
Weekly Rate
Hourly Rate
Casual Hourly
(25% loading)
FLH1
$606.40
$15.96
$19.95
FLH2
$624.00
$16.42
$20.53
FLH3
$632.80
$16.65
$20.81
FLH4
$648.00
$17.05
$21.31
FLH5
$659.60
$17.36
$21.70
FLH6
$670.20
$17.64
$22.05
FLH7
$706.10
$18.58
$23.23
FLH8
$758.70
$19.97
$24.96

24. Comparing your Flat Rate to the Award Rate

25. Pastoral Award 2010- example
FLH2 - $16.42
Casual ordinary rate
(+25%)
$20.53
Penalty rate for not taking a meal break
200%
$41.06
Overtime rate
150%
$30.80
Sunday overtime rate
Assuming:
An evening meal is provided and no other allowances are applicable; and
No arrangement has been agreed to extend the time beyond 5 hours before a meal break is taken or penalty rates kick in.

26. Pastoral Award 2010 -example
Casual FLH2 - $20.53
Day
Start
Finish
Break
Total Hours
Award Rate
Daily Total
Mon
0800
2100 - 13
431.13
Tues
2000 12
390.07
Wed
2200
1hr
266.89
Thurs
0900
Fri 11
236.10
Sat
30min
12.5
385.00
Sun
1900
451.66
Weekly Total
85.5
$2,591.98

27. Flat Rate - example Flat Rate - $24 per hour Day Start Finish Break
Total Hours
Daily Total
Mon
0800
2100 - 13
312
Tues
2000 12
288
Wed
2200
1hr
Thurs
0900
Fri 11
264
Sat
30min
12.5
300
Sun
1900
Weekly Total
85.5
$2,052.00

28. Is the flat rate compliant?
Comparing Rates
Pastoral Award
$2,591.98
Flat Rate
$2,052.00
Difference
$539.98
Hourly Difference
$6.32 (85.5 hours)
Compliant rate for this example = $30.32
(Original flat rate of $24 plus $6.32)
This is purely an example and is NOT an recommended casual rate. Individual examples will vary.

29. Recommendation
Undertake some calculations based on your employee timesheets to check your flat rates are compliant with the relevant award entitlements.
Remember to factor in casual loadings, applicable allowances, overtime penalties, public holiday penalties, etc