National Employment Standards (VCE SSCE Business Management): Revision Notes

National Employment Standards

What are the National Employment Standards?

The National Employment Standards (NES) are the 11 minimum employment entitlements that must be provided to all Australian employees. These standards form a safety net of fair minimum conditions that protect employees' key entitlements in law. It's important to note that only certain entitlements apply to casual employees.

The NES came into operation on 1 January 2010 and apply to all employees under the federal system, regardless of:

• Their industry
• Their occupation
• Their income level

Legal protection

Employer obligations

The 11 minimum employment standards

1. Maximum weekly hours of work

Full-time employees: The standard working week is 38 hours. However, employees may be required to work a reasonable number of additional hours beyond this.

This standard balances employer flexibility with employee protection from excessive working hours.

2. Requests for flexible working arrangements

Employees who have worked with the same employer for at least 12 months can request flexible working arrangements if they fall into certain categories.

Eligible employees include those who:

• Are the parent or have responsibility for the care of a child who is of school age or younger
• Are a carer (as defined in the Carer Recognition Act 2010)
• Have a disability
• Are 55 years or older
• Are experiencing violence from a family member
• Provide care or support to an immediate family member or household member who is experiencing family violence

3. Offers and requests to convert from casual to permanent employment

This standard provides casual employees with pathways to secure, permanent employment.

How it works:

• Casual employees who have worked for their employer for 12 months must be offered the option to convert to full-time or part-time (permanent) employment
• The offer must come from the employer
• An eligible casual employee can also make their own request to convert to permanent employment after their 12-month anniversary
• Certain eligibility requirements must be met for the conversion to occur

4. Parental leave and related entitlements

Parental leave recognises the importance of family and caring responsibilities.

Types of parental leave include:

• Maternity leave
• Paternity and partner leave
• Adoption leave
• Special maternity leave
• Safe job and no safe job leave

Eligibility: Employees can take parental leave if they have worked for their employer for at least 12 months.

This protection ensures employees can take time to care for new children without losing their job security.

5. Annual leave

Annual leave provides employees with paid time off for rest and recreation.

Entitlements:

• All full-time, non-casual employees receive four weeks of paid annual leave each year
• Part-time employees receive annual leave on a pro rata basis (proportional to their hours)
• Certain shift workers may be entitled to an additional week of paid annual leave

6. Personal/carer's leave, compassionate leave and unpaid family and domestic violence leave

This standard recognises that employees sometimes need time off for personal illness, caring responsibilities, or family emergencies.

Personal and carer's leave:

• Employees receive 10 days of paid personal and carer's leave each year
• Part-time employees receive this on a pro rata basis
• Can be used when the employee is ill or injured, or to care for an immediate family or household member

Compassionate leave:

• Two days of paid compassionate leave on the death or serious illness of a family member or person the employee lives with
• Two days of unpaid personal leave for genuine caring purposes and family emergencies

Family and domestic violence leave:

• Employees are entitled to five days of unpaid family and domestic violence leave each year
• Employees receive the full five days from the day they start work (no build-up period required)
• The five days renews each 12 months
• Does not accumulate from year to year if unused

7. Community service leave

Community service leave recognises the value of employees contributing to their community.

Key features:

• Available to all employees, including casual employees
• Can be taken for activities such as:
  • Voluntary emergency management activities
  • Jury duty
• Generally unpaid (except for jury duty)
• No limit on the amount of community service leave an employee can take

8. Long service leave

Long service leave is a period of paid leave granted to an employee who has served a specified period of continuous employment with one employer.

Victoria's provisions:

• Under Victoria's Long Service Leave Act 2018, all employees who have worked continuously with one employer for at least seven years are entitled to long service leave
• This applies to all types of work: full-time, part-time, casual, seasonal and fixed term
• Victoria has introduced a portable long service scheme (Long Service Benefits Portability Regulations, October 2020)
• The portable scheme allows workers in certain industries (community services, contract cleaning and security) to accrue long service leave entitlements and transfer them from job to job

9. Public holidays

Public holidays ensure employees can observe nationally and locally significant days.

Entitlements:

• Guarantees eight national public holidays
• Plus prescribed state and local holidays
• Where an employee works on a public holiday, they are entitled to:
  • An appropriate penalty rate of pay, OR
  • Other compensation (as set out in the relevant award)

10. Notice of termination and redundancy pay

This standard provides employees with security and financial support when employment ends.

Notice of termination:

• Employees are entitled to fair notice of termination
• Notice must be provided in writing

Redundancy pay:

• Employees who are made redundant are entitled to redundancy pay
• This applies to employees in workplaces with 15 or more employees
• Maximum redundancy pay is 16 weeks' pay

11. Fair Work Information Statement or Casual Employment Information Statement

As mentioned earlier, employers must provide new employees with information about their rights and entitlements.

Requirements:

• Employers must give each new employee the Statement before the employee starts employment
• The Statement contains prescribed information about:
  • Employee rights and entitlements under the NES
  • The role of the Fair Work Commission (FWC)
  • The role of the Fair Work Ombudsman

Real-world application: enforcement of the NES

The NES are legally enforceable, and employers who fail to comply face serious consequences. Government watchdogs actively investigate and prosecute breaches.

Remember!