How Do You Really Know You’ve Chosen the Right One? A Practical Guide to Modern Awards

One of the greatest challenges facing Australian Business Owners and Executives is knowing exactly which Award applies to each Employee. With 121 Awards currently in force, getting it wrong is surprisingly easy — and the consequences today can be severe.¹

Underpayments trigger back-pay claims, civil penalties and — since 1 January 2025 — intentional wage theft is now a criminal offence under the Fair Work Act 2009 (Cth), carrying penalties of up to 10 years’ imprisonment for individuals and fines exceeding $8 million for companies.²

Overpayments quietly erode profitability. Either way, the risk to cash flow, reputation and personal liability is REAL.

The Good News? There is a clear, repeatable process to validate your choices with confidence. And here’s exactly how to do it — all anchored in official Fair Work resources.

Why Getting the Award (and Classification) Right Matters More Than Ever

Awards set the minimum pay rates, penalties, allowances, hours and leave conditions that apply to most Australian Employees. They are determined under the Fair Work Act 2009 and are either industry-based or occupation-based.³

Misclassification (or choosing the wrong Award entirely) is one of the TOP REASONS the Fair Work Ombudsman recovers hundreds of millions in underpayments every year. Australian Law looks at the Actual Duties Performed — NOT the Job Title on the Contract.

Step-by-Step: How to Validate You’ve Chosen the Right Award

Follow the below steps every time you create a new role within your Business or when duties change:

1. Confirm There Is NO Registered Enterprise Agreement

   If your Business has a current Fair Work Commission-Approved Registered Enterprise Agreement that covers the Employee, the Award usually does NOT apply (UNLESS the Registered Enterprise Agreement’s base rates fall below the Award).

2. Use the Official Fair Work 'Find My Award' Tool

   Go to the Fair Work Ombudsman’s 3-Step interactive tool. It asks about Agreement coverage, Role and Industry and will point you to the Most Likely Award(s).⁴

3. Read the Coverage Clause (usually Clause 4)

   Every Award opens with a Coverage Clause that defines exactly WHO it covers. DO NOT rely on the Award’s Title — read the full clause and any exclusions.

4. Match the Role to the Classification Structure

   Classifications are usually in the Pay Section or Schedule A (or similar).  Compare the main purpose of the role and the duties that make up the “Major and substantial Part” of the Work against the Level Descriptors.  Considerations below should be followed:

   • Tasks and Duties Performed;

   • Skills and Competence Required;

   • Qualifications or Training;

   • Level of Experience; and

   • Degree of Supervision Given or Received.

   And ALWAYS read the Award’s own instructions on How To Apply Classifications.

   
   

5. Document Your Decision

   Record the Award Name, Classification Level, Date of Assessment and the Specific Duties that support it. Keep this with the Employee’s Position Description (PD).

6. Review Annually — OR Whenever Duties Change

   Roles evolve. A promotion, new responsibilities or Business Restructure can shift the classification. Re-run the validation process.

Immediate Actions for Business Owners & Executives

To reduce risk quickly, take/organise these Practical Steps in the next 30 days within your Business:

1. Conduct a rapid Award Audit for All Current Employees — OR focus on those roles that have changed or grown recently.

2. Ensure every role has an up-to-date Position Description that clearly outlines Actual Duties and Responsibilities.

3. Run the Top 5–10 Roles through the Official Fair Work 'Find My Award' Tool and document the outcomes.

4. If you have more than 20 Employees or complex structures within your Business, book a short session with your HR/Payroll Advisor (or RUNPAY’s Executive Advisory team) to review classifications.

5. Schedule an Annual Award Review Date in your Calendar to make this process routine.

The Make-or-Break Tool: Quality Position Descriptions

Job titles alone are often very misleading — Fair Work explicitly warns against relying on them.

A clear, up-to-date Position Description (PD) that accurately captures the REAL duties, responsibilities, decision-making authority and reporting lines is incredibly essential in ANY Business. It becomes your single source of truth when matching the Role to an Award Classification. Without one, you’re guessing — and the risk of underpayment or overpayment skyrockets.

Structured Job Evaluation Training (JEMS)

— A Powerful Ally

Many forward-thinking Businesses use formal Job Evaluation Methodologies to remove subjectivity. Job Evaluation Management System (JEMS) Training — available through accredited providers — equips HR and Leadership Teams to objectively assess Role Structures, Level Duties and Responsibilities.

JEMS helps you:

• Map Positions consistently across your Business;

• Align Roles accurately to Award Classifications; and/or

• Defend your Decisions with transparent, evidence-based reasoning if you are ever challenged.

Again, particularly very valuable for Businesses with Complex or Frequently Evolving Structures (e.g. in size, position scope or simply those experiencing an ongoing change in Regulations and Industry rules).

Common Pitfalls That Cost Businesses Millions

TIME is always the challenge for Business Owners and Executives - but COMPLIANCE IS YOUR DUTY. So DON'T...

1. Rely on Job Titles instead of Actual Duties;

2. Assume “we’ve always done it this way” is still correct;

3. Use the Same Award for every Employee in a Department;

4. Fail to Update Classifications AFTER any Internal Promotions or Restructures; AND

5. Not document the Rationale behind any Decision.

Not Sure What to Do Next?

If validating 121 Awards feels a little overwhelming — especially with Criminal Penalties now on the table — trust me, you’re not alone! Many Executives turn to Specialist Payroll Advisory Support or Structured Job Evaluation Programs to lock in compliance and a true peace of mind.

At RUNPAY™, our Executive Advisory Service and Payroll Vendor Marketplace give Business Owners and Executives direct access to specialists in exactly this type of validation and classification work.

For the complete official A–Z list of all 121 Awards with direct links to each one, visit the Fair Work Ombudsman’s List of Awards.⁵

Keep in Touch & Stay Connected

Subscribe to RUNPAY™ for more practical payroll, compliance and people insights.

Have questions about your current Awards or classifications? Reach out — we’re here to help YOU get it right!

References

1. Fair Work Ombudsman, “Find My Award” Tool (2026)

   https://services.fairwork.gov.au/find-my-award

2. Fair Work Ombudsman, “List of Awards” (September 2025)

   https://www.fairwork.gov.au/employment-conditions/awards/list-of-awards

3. Fair Work Ombudsman, “Criminalising Wage Underpayments and Other Issues” (Updated 2025)

   https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes/criminalising-wage-underpayments-and-other-issues

4. Fair Work Ombudsman, “Award Classifications” Guidance (November 2025)

   https://www.fairwork.gov.au/employment-conditions/awards/award-classifications