Individual Contracts That Cut Take-home Pay And Reduce Employment Conditions
Media briefing
Factsheet 2

Individual contracts that cut take-home pay and reduce employment conditions

Important changes coming from 1 July 2005

The Howard Government has said it will use its new Senate powers to take away many of your basic rights at work.

The Government wants to use individual contracts to undercut your existing rights and conditions at work.

Currently 5 million Australian workers and their families rely on awards or collective enterprise agreements to protect their pay, conditions and living standards.

Unions believe that all workers should have the right to choose not to sign an individual contract and to bargain collectively with their workmates for wages and conditions - but the Howard Government wants to force more workers on to individual contracts.

The Howard Government wants to change this by introducing workplace laws to force more workers on to individual contracts.

The Government introduced a new type of individual contract in 1996, called an Australian Workplace Agreement (AWA).

AWAs (individual contracts) were specifically designed to make it easier for employers to undercut award and collective agreement conditions.

AWAs allow employers to single out employees to force new working conditions on to them one at a time.

AWA individual contracts are used to give employers more control over your working hours, to reduce overtime pay, and to make more people casual.

The Government’s new laws will allow employers to put workers onto individual contracts that cut take-home pay and reduce employment conditions to only five minimum standards:

  • a minimum hourly rate of pay (currently $12.75)
  • 8 days sick leave
  • 4 weeks annual leave
  • unpaid parental leave
  • 38 hour week but no extra pay for overtime, long shifts or weekend work

Many workers will lose conditions like weekend, shift and public holiday rates; overtime; redundancy pay; allowances. Workers who refuse to sign may fear being sacked.

More AWA individual contracts will mean less family friendly working hours and lower standards of living.