Workplace Glossary

Adverse action is when an employer treats a worker badly for exercising a workplace right, like firing or demoting them.

Adverse action is when an employer takes harmful action against an employee for exercising a workplace right, and is prohibited under general protections laws.

Annual leave is 4 weeks of paid leave per year that accrues progressively for all permanent employees under the NES.

Annual leave loading is an extra payment (usually 17.5%) on top of your base pay when you take annual leave.

An annualised salary is a flat yearly salary intended to cover all award entitlements including penalties, loadings, overtime, and allowances.

An award classification is the level or grade assigned to an employee under a Modern Award, determining their minimum pay rate and conditions.

The base rate of pay is the minimum hourly or weekly rate under an employee's award or agreement, excluding penalties, loadings, allowances, and overtime.

Casual conversion is the right for casual workers to request permanent employment after 12 months of regular work.

Casual conversion is the right for eligible casual employees to request or be offered permanent (full-time or part-time) employment after a qualifying period.

Casual loading is the extra 25% on top of the base hourly rate paid to casual employees instead of leave entitlements.

Community service leave covers time off for jury duty (paid, minus jury fees) and voluntary emergency management activities (unpaid) under the NES.

Compassionate leave (bereavement leave) provides 2 days of paid leave per occasion when an immediate family or household member dies or has a life-threatening illness.

An employment termination payment is a lump sum paid on termination that receives concessional tax treatment, such as genuine redundancy payments and gratuities.

An enterprise agreement is a deal between an employer and employees setting pay and conditions, approved by the Fair Work Commission.

An enterprise agreement is a legally binding agreement between an employer and employees setting pay and conditions, approved by the Fair Work Commission.

The Fair Work Commission is Australia's national workplace tribunal that sets minimum wages and resolves disputes.

The Fair Work Information Statement is a document employers must give all new employees before or as soon as practicable after their start date.

The Fair Work Ombudsman is the government agency that enforces workplace laws and helps recover unpaid wages.

Flexible work arrangements are changes to hours, patterns, or location of work that eligible employees can request under the NES.

General protections stop employers from taking adverse action against workers for exercising workplace rights.

Genuine redundancy is when an employee's position is no longer needed due to operational changes, and the employer has followed consultation and redeployment obligations.

An IFA is a written agreement between an employer and individual employee that varies certain terms of an award or enterprise agreement to suit both parties.

Long service leave is paid leave granted to employees who have worked for the same employer for a long period, usually 7-10 years.

Under the NES, maximum weekly hours are 38 for full-time employees, plus reasonable additional hours that an employer can request.

The minimum wage is the lowest hourly rate an employer can legally pay an adult employee in Australia.

A Modern Award is a legal document setting minimum pay rates and conditions for employees in a specific industry or occupation.

The NES are 11 minimum workplace entitlements that apply to all employees in the national workplace relations system.

A notice period is the time between being told you're losing your job and your last day of work.

Ordinary time earnings (OTE) are the gross amount an employee earns for ordinary hours of work, used to calculate superannuation contributions.

Overtime is hours worked beyond an employee's ordinary hours, paid at penalty rates of 150% (time and a half) or 200% (double time) under most awards.

Parental leave gives eligible employees up to 12 months of unpaid leave, plus access to the government's Paid Parental Leave scheme.

PAYG withholding is the system where employers deduct income tax from employee wages and send it directly to the ATO on behalf of the employee.

Australian employers must give payslips within 1 day of payday showing gross pay, tax, super, hours, and the pay rate.

Under the Fair Work Act, employers must provide itemised payslips to employees within 1 working day of payday, in electronic or printed form.

Penalty rates are higher pay rates for working outside normal hours — evenings, weekends, and public holidays.

Personal leave covers 10 days of paid sick leave and carer's leave per year for full-time employees under the NES.

A probation period is a trial phase at the start of employment, typically 3–6 months, during which an employer assesses a new employee's suitability.

Public holiday entitlements give employees the right to be absent on public holidays without loss of pay, or to receive penalty rates if they work.

Redundancy is when an employer no longer needs a job to be done by anyone, usually due to restructure or business changes.

The right to disconnect allows employees to refuse work-related contact outside their working hours unless the refusal is unreasonable.

Serious misconduct is behaviour severe enough to justify immediate dismissal without notice, such as theft, fraud, assault, or serious safety breaches.

A shift loading is an extra percentage added to the base rate for working outside standard daytime hours, such as evening, night, or early morning shifts.

The small business exemption extends the minimum employment period for unfair dismissal claims to 12 months for businesses with fewer than 15 employees.

A stand down is when an employer directs employees not to work (and not be paid) due to circumstances outside their control.

The super guarantee is the minimum percentage of your earnings your employer must pay into your super fund — currently 12%.

The superannuation guarantee requires employers to pay at least 12% of an employee's ordinary time earnings into a complying super fund.

Unfair dismissal is when an employee is sacked in a way that is harsh, unjust, or unreasonable under the Fair Work Act.

Wage theft is the deliberate underpayment or non-payment of employee entitlements, criminalised at the federal level from 1 January 2025.

Workers' compensation is a state-based insurance scheme that covers medical expenses and wage replacement for employees injured or made ill at work.

Workplace bullying is repeated unreasonable behaviour directed at a worker that creates a risk to health and safety.