Work Smart Jargon Busters
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Absenteeism
When an employee constantly or continuously fails to attend work as scheduled. In particular, when their absence forms a pattern which suggests that the employee is dissatisfied with their work or that their absence could have been avoided. Absenteeism can be considered grounds for dismissal.
Adult employees
The majority of awards and agreements stipulate an age at which all employees must be paid the full adult rate of pay. Typically, this is 21 years of age but can be younger under some awards.
Allowances
Additional payments made to employees for undertaking certain tasks, possessing a skill, using their own tools or performing work under adverse conditions. Types of allowances include disability allowances, height allowance, dirt or danger money, qualification and supervisory allowances.
Annual holidays
Full-time and part-time employees in
Apprentice
A person (often a young person) who works for an employer, under an obligation to learn a trade. Some awards have provisions for adult apprentices.
Apprenticeship
A form of on-the-job training where an apprentice is under contract to an employer to learn all aspects of a trade. Apprenticeships need to be registered by the Department of Education and Training (DET).
Arbitration
A method of dispute settlement in which an independent third party considers the arguments of both sides and then makes a ruling which is binding on both parties in the dispute.
Australian Council of Trade Unions (ACTU)
The peak organisation which represents unions in
Australian Industrial Relations Commission (AIRC)
Award classifications
The groups identified in the relevant award according to the nature or complexity of tasks undertaken (eg Level 1 Customer Service Assistant and Level 4 Customer Service Manager).
Award conditions
The minimum, legally enforceable rates of pay and conditions of employment that must be provided for employees – as specified in the appropriate award.
Award coverage
Those employees covered by an award under the NSW industrial relations system. Most major NSW awards are 'common rule' awards, which mean they cover all employers and employees in an industry or occupation, whether or not they were parties to the making of the award (eg anyone working in a hairdressing salon is covered by the Hairdressers Award).
Every NSW award has a clause which sets out the industry or occupation covered by the award. In most awards this information is contained in the 'Area, Incidence and Duration' and/or 'Industries and Callings' clauses.
Award-free employees
Employees who are not covered by awards. Instead their terms and conditions of the contract of employment are mutually agreed upon with the employer. However, employment contracts are still covered by some employment laws which provide minimum entitlements such as annual and long service leave, occupational health and safety and workers compensation.
Award rate of pay
The lowest rate of pay that may legally be paid to an employee who is covered by a State award. An award generally contains a number of rates that vary according to the age of the employee, their employment status (full-time, casual or part-time), and the employee's classification.
Awards
Legal documents setting out minimum rates of pay and conditions of employment which apply to employees in a particular workplace, organisation, industry or occupation. They set out hours of employment, pay rates, penalty rates, loadings, allowances, leave entitlements, employment protection or casual work. The parties involved in the making of an award may include one or more employers, employer organisations and unions (who represent employees). Laws and awards override employment contracts. An employer and employee cannot agree to 'contract out' of an award, that is, offer pay or conditions lower than those in an award. NSW law requires an employer to exhibit a copy of all relevant awards in the workplace.
Back pay
Money that is owed by an employer to an employee as a result of underpayment of wages.
Base rate
The regular rate of pay which does not include any extra money for such things as overtime or allowances.
Bullying
An on-going situation in which a person is abused, threatened or assaulted in circumstances relating to their work. This includes all forms or harassment, intimidation, physical threats or assaults and other intrusive behaviours.
Career
An occupation selected and pursued as the chief area of employment during your working life. A career usually involves the development of skills and the aim of successive promotions.
Career Path
The way in which your career develops.The development depends on a variety of factors like your personal capabilities, skills, experience and the opportunities available for training and advancement.
Carers' leave
See: Personal carers' leave; Family leave
Casual employees
Employees who work on an hourly or daily basis. They receive a loading on top of normal wages because they do not receive benefits such as paid sick leave and paid public holidays. NSW casual workers receive extra money to cover annual holiday pay. Casual loadings may vary from award to award. Generally the loading for a casual employee is between 15% and 20% on top of the hourly rate. Some awards limit the number of hours a casual employee may work each week.
Centrelink
Centrelink is a government agency delivering a range of Commonwealth services to the Australian community such as social security payments and employment assistance.
Certificate of service
A statement given to an employee at the end of a period of employment which states the commencement date, the date employment ceased and the nature of the employment.
Certified agreements
Collective agreements made directly between an employer and a group of employees, or between an employer and a union or unions representing employees.
Civil law
Legal proceedings which are not criminal in nature including areas of the law such as contracts.
Collective bargaining
A method of negotiation to settle industrial disputes between employees and employers, which is negotiated by a union on behalf of employees.
Conciliation
Conditions of employment
These include physical work environments, agreed job tasks, financial rewards, and rules under which employees are engaged in an enterprise. Many of these are specified in the award.
Constructive dismissal
When an employee has resigned but has done so under duress as a result of what the employer has done, said or failed to do. The conduct of the employer has compelled or unduly influenced the employee to leave employment.
Contract of employment
An employment arrangement between an employer and employee which is enforceable by law. A contract of employment sets out the conditions and terms under which an employee accepts to work in a particular job – such as the wage or salary amount, number or spread of working hours and whether overtime is paid or allowed.
Curriculum Vitae - see Resume
Deductions
Any amounts of money deducted from an employee's pay. Except by court order or a request by Centrelink, an employer may only make a deduction from an employee's pay if authorised in writing by the employee or the deduction is principally for the benefit of the employee.
Discrimination
When someone is not treated as fairly as someone else in a similar situation, or treated differently because they are different in some way.
Dismissal
When a contract of employment is ended by the employer. In most cases the employee is entitled to receive notice of dismissal and be paid for the period of notice and any pay and leave that is owing. See also: Unfair dismissal.
Double time
A penalty rate of pay set at twice the standard rate. Double time is usually only paid to employees who work more than two or three hours overtime or on Sundays.
Downsizing
When an organisation reduces the number of its employees, usually in response to financial hardship.
Earnings
The total gross pay that is paid to a person for some period of work. Earnings include award wages, award supplements, as well as over-award payments.
Employee
A person working under the control or direction of another, under a contract of employment in return for a wage or salary but does not include a person working for their parents.
Employer
A person or organisation who employs workers under a contract of employment. Employers exercise control over their workers and are responsible for the payment of wages or salaries and for providing a safe working environment.
Employer association
An organisation of employers who share similar interests or areas of trade and which aims to promote and represent their opinions and concerns. Employer associations often help negotiate awards.
Employment
A contract between an employer and employee in which the employee agrees to provide services under the direction and control of the employer in return for a salary or wage paid by the employer.
Employment status
The term refers to whether an employee (a person who has a contract of employment) is working on a fulltime, part-time or casual basis.
Engagement
The period or occasion of employment for casual employees.
Enterprise
Agreements which are negotiated voluntarily between an employer and their employees or the union on behalf of those employees. They set out the minimum conditions of employment for employees engaged in particular types of work in one particular enterprise. Agreements may cover some or all of the employment conditions under the appropriate award. Enterprise agreements must comply with all NSW laws and, in general, employees should not be worse off under the agreement compared to awards. They are not enforceable unless they have been approved by the Industrial Relations Commission of NSW.
Enterprise
The process which employers and employees use to negotiate a set of rules and conditions for their workplace and which results in an enterprise agreement. Another term to describe enterprise bargaining is 'workplace bargaining'.
Entitlements
The rights which an employee has access to at work such as holidays, sick leave and allowances.
Entry level skill
Skills required to commence paid employment in a position/job.
Equal pay
The principle that all employees should receive the same payment when they perform the same work.
Family leave
The right of employees to take a certain amount of their accrued sick leave each year to meet their family responsibilities. It is also known as personal carers' leave. A family member is defined as either a member of your household or a member of your immediate family and includes same sex partners.
Fixed term contract
A contract of employment under which employees are employed for a specified time. These employees generally accrue entitlements such as annual and sick leave on a pro rata basis.
Flextime
A system of work which allows employees to start and finish work between a flexible range of agreed hours. They must work a set amount of hours each day or week. For example, an employee may be required to work eight hours a day, but may start work at any time between 7am and 9am and finish work eight hours later, between 3pm and 7pm.
Full-time employees
Employees who generally work 38 hours per week and receive full weekly wages and conditions for working the hours identified in the award. They receive all wages and conditions under the award. Other conditions include annual leave and long service leave.
Garnishee
An automatic pay deduction on behalf of a third party. It usually results from a court order. Except by court order or a request by Centrelink, an employer may only make a deduction from an employee's pay if authorised in writing by the employee or the deduction is principally for the benefit of the employee.
Grievance procedure
A formal procedure developed for resolving issues or complaints, such as alleged harassment or discrimination.
Gross pay
The amount an employee has earned before their income tax and other deductions are subtracted from their pay.
Group certificate
A form which shows an employee's gross pay, net earnings, tax and other deductions which is given to employees by employers at the end of the financial year for taxation purposes.
Harassment
Any unwanted or uninvited behaviour which is offensive, embarrassing, intimidating or humiliating. It is against the law for a person to be harassed because of their sex; pregnancy; race (including colour, nationality, descent, ethnic or religious background); marital status; disability; homosexuality; age; transgender or for their relationship to or association with a person of a particular sex, race, marital status etc. Harassment is a form of discrimination.
Hourly rates of pay
These are specified in awards or agreements for each job classification as the lowest rate payable per hour. They may include allowances and loadings. Hourly rates can vary for full-time, part-time and casual employees.
Income
Money earned from work or business.
Income tax
A government tax charged on what a person earns from work each year. The amount of income tax paid is dependent on how much is earned and certain other entitlements and exemptions. See also:Tax
Individual Agreement
Industrial action
Industrial relations
The relationship between employers and employees.
Industrial Relations Commission of NSW (IRC)
The tribunal established to protect the workplace rights and interests of those workers, employers and associations that are regulated by
Industry award
An award that covers all employees in a single industry.
ITEA
An Individual Transitional Employment Agreement. Available for limited use during the transition to the federal government's new workplace relations system.
Job
The set of tasks that is allocated to an employee and that they are expected to carry out during their work day. The term is often extended to include the immediate physical or social work environment in which the tasks are performed.
Job classification
A system where jobs are grouped into categories which correspond with the amount of training, skill, competencies, knowledge or experience required to do them. Each job classification has a specific rate of pay related to it which is set out in awards and agreements.
Job description
A document which describes the purpose, expected activities and responsibilities of a particular job.
Job satisfaction
The extent to which employees are content with the work they do and the conditions which they work under.
Job sharing
When two people share a single job, and the wage of one person is split between them.
Junior employees
Employees under 18 or 21 years of age. Some awards specify a separate pay scale for junior employees. This may be paid at a percentage of the adult rate, or a specific rate, depending on the age of the employee.
Leave without pay
A form of leave granted when an employer permits an employee to take time off work without pay, for a specified period.
Leave loading
A pay bonus when on annual leave for some employees.
Loadings
Any payments made to an employee, over and above their normal award rate, to compensate them for some particular aspect of their job (eg shift loading) or for some aspect of their employment (eg remote geographic location).
Log of claims
This is a list of demands drawn up by both unions and employers as part of the negotiations for an award or enterprise agreement. It specifies what rates of pay, hours of work, leave and other entitlements that either the union or employer wants to see in the award or agreement.
Long service leave
Paid leave due to an employee after working for an unbroken period of ten years with an employer.
The employee receives two months paid leave after ten years service with one employer and one month paid leave for each additional five years service with that employer.
Maternity leave
Leave taken by women employees during or after pregnancy. The period of leave available is up to 52 weeks.
Meal allowance
An allowance paid to employees who work overtime or late nights to compensate them for the cost of a meal. The allowance, and the conditions under which it must be paid, are set out in the award.
Mediation
Mediation is a process in which the parties to a dispute, with the assistance of a neutral third party (the mediator), identify the disputed issues, develop options, consider alternatives and try to reach an agreement.
Minimum wage
The lowest amount which can legally be paid to an employee under an award or agreement.
Negotiation
When two parties discuss what they want in order to reach an agreement.
Net pay
The amount of money an employee receives after income tax and other deductions have been taken out from weekly earnings. Also called 'take home pay'.
No net detriment test also called: No disadvantage test
Notice
A notification of the end of employment which comes from either an employer or employee.
Occupation
The trade, skill, or job performed by an individual or group.
Occupational health and safety (OH&S)
The general area of concern in employment which covers the physiological and psychological well-being of persons engaged in work. Employers have a duty to take reasonable care to guard their employees' health and safety at work.
Ordinary hours
The hours set out in an award that an employee works each day or week that are paid at normal hourly rates. Most awards provide that full-time or weekly employees work 38 ordinary hours a week.
Over-award payments
Payments made in excess of the minimum rate set out by the award.
Overtime
Work performed in addition to ordinary hours. Overtime work must be paid at the overtime rates of pay specified in awards.
Paid rate
The actual rate of pay received by employees.
Parental leave
The entitlement of both male and female employees to take leave when their baby is born. See also Maternity Leave.
Part-time employees
Employees who are engaged for a number of hours that are less than those for full-time employees in an award. Part-time workers generally receive the same entitlements and benefits of a full-time worker on a proportional basis.
Part-time work agreements (PTWAs)
Formal written agreements between employers and employees to work part-time hours which differ from those in awards or enterprise agreements. PTWAs can override certain provisions in awards that specifically relate to part-time work such as limitations on the number of people that can work part-time and the maximum and minimum hours for part-time work.
Pay
Payment for work. The total amount earned is called gross pay and the total amount earned minus deductions (eg tax) is called net pay. See also: Salary; Wage
Pay slip
A record of pay which an employer must provide to employees each time they are paid. The pay slip must contain details such as the name of the employer, the name of the employee, date when the payment was made, the amount of money paid before tax, the amount deducted for tax, the amount paid after tax and superannuation contributions.
Penalty rate
A higher rate of pay which compensates for work done outside usual hours such as late at night or on public holidays.
Personal carers' leave
Personal carers' leave is leave an employee can take to care for a family member who is sick. If an employee takes personal carers' leave she/he must be responsible for the care of the person who is sick. This type of leave is paid leave and comes from the employee's current or accumulated sick leave.
Pro-rata
The calculation of entitlement for part-time employees on a proportional basis when compared to a full-time employee. It may also be used when a yearly entitlement is calculated for a period of employment less than a whole year.
Productivity
Productivity is a ratio of the value of an enterprise's output of goods and services to the cost of the various resources used to achieve that output.
Profession
An occupation which requires knowledge gained through academic study, such as law, medicine or teaching.
Qualification
Often used by employers to describe a training or educational achievement, such as a degree, diploma or certificate. It also includes qualities or accomplishments which make a person suitable for a position.
Redundancy
This occurs when the work performed by an employee is no longer necessary because their job is replaced by technology or the work is restructured making the position redundant.
Referee
A person who can provide details of your character, education, employment history and suitability for the job to a prospective employer. This person is usually required to be nominated as part of an application for a job.
Registered Training Organisation (RTO)
Organisations which provide training and have satisfied the national criteria for provision of services, and are registered by a state/territory training authority. For example,TAFE NSW is a registered training organisation.
Remuneration
Money paid or a benefit given to a person in return for their services. Usually means a wage or salary but can also take the form of a special payment such as a bonus or a benefit.
Resignation
When an employee tells their employer of their intention to leave their job and therefore terminate their contract of employment.
Restraint of trade
Any action which damages or hinders in some way a person's opportunity to carry on a business, or a provision in a contract which restrains a former employee from working for a competing business. Restraints of trade are illegal unless the restraint is in writing and is reasonable.
Resume
A document which lists and summarises your career achievements and experiences. Also known as a 'curriculum vitae'.
Retirement
When a person stops working permanently or withdraws from their position, usually because of their age.
Retrenchment
See: Redundancy
Salary
A fixed regular payment for work or services, by the week, day, fortnight or month or individual job performed. See also: Pay; Wage
Self-employed
Any person who operates their own business or professional practice, who does not employ labour, and who operates independently of other organisations.
Service increment
A wage adjustment given to employees based on their length of service in the business. This form of wage increase is increasingly being linked to skills and competencies rather than being automatically passed on to employees.
Severance pay
The final payment made to an employee when their employment is terminated. It includes amounts for accrued leave and accrued pay for time already worked. In instances of redundancy, severance pay can also include redundancy pay.
Shift allowance
An allowance paid for working a shift that is compensation for working during non-standard (day time) hours (eg afternoon shift, night shift or early morning shift).
Sick leave
Paid leave provision in awards for employees who are unable to attend work because of illness or injury. Most awards provide for at least five days in the first year and eight days in the second and subsequent years. Untaken sick leave can usually be carried forward for several years.
Small business
An independently owned and managed business which employs less than twenty people and is closely controlled by the owner manager who also contributes financially to its maintenance.
Spread of ordinary hours
The 'spread of ordinary hours' in an award defines when ordinary hours apply. For example, where a spread of ordinary hours is between
Superannuation
The money put aside during your working life for use when you retire. An employer must contribute 9% of their employee's wages into a superannuation fund. Superannuation is an additional benefit on top of a wage or salary.
Superannuation guarantee
Superannuation contributions that most Australian workers receive from their employers. The employer should contribute to a complying superannuation fund or a retirement savings account (RSA) for all their employees.
Take home pay
See: Net pay
Tax
A compulsory financial charge imposed by governments on such things as income, goods and property for use in public spending and administration. Also known as taxation. See also: Income tax
Tax evasion
The illegal understatement of income to avoid paying tax. Also, the failure to pay taxes which are legally due to the government.
Tax return
A statement of an employee's income which is submitted to the Australian Taxation Office at the end of the financial year.
Termination
The act of ending an employee's employment for any reason.
Time-and-a-half
One and a half times the ordinary hourly rate of pay.
Trade union
An organisation of employees, which acts collectively for mutual protection and assistance with wages and conditions of employment. Unions represent workers in dealings with employers and government. Many unions also offer extra services to their members such as advice about finances, access to health services, such as dental care, scholarships to help pay for school books or discount movie tickets. See also: Australian Council of Trade Unions
Traineeship
A type of job that combines training and work. Trainees undertake on-the-job work (usually four days per week) as well as training provided by a college or other training provider (usually a day each week).
Unemployment
Involuntarily and temporarily without a job, although able and willing to work.
Unemployed
The portion of the workforce who are able and willing to work but unable to find jobs.
Unemployment benefits
A regular social security payment for people who are registered with the Government as unemployed. The unemployment benefit helps with living and job seeking costs. Also known as the 'dole'.
Unfair dismissal
When an employee is dismissed in violation of their contract, award or the law. An unfairly dismissed employee has the right to seek compensation for lost earnings, and can take their claim to an industrial tribunal. Also known as 'wrongful dismissal'.
Union
See:Trade Union
Unpaid trial work
A common – and illegal – way of exploiting young people who are trying to gain work experience. Unpaid trial work should not be confused with school work experience programs. With formal work experience, clear boundaries are set as to when the work will start and finish.
Vocational education and training
Training or education which focuses on preparing students for a trade or commercial career.
Voluntary redundancy
When an organisation intends to lay off workers it can ask whether any employees are interested in resigning voluntarily and taking a lump-sum payment.
Wage
Payment for work or services, by the week, day or by the individual job performed.
See also: Salary
Work contract
WorkCover NSW
A NSW state government body responsible for workplace safety, injury management and workers' compensation program. Its primary objective is to work in partnership with the NSW community to achieve safe workplaces and effective return to work and security for injured workers.
Worker
A broad term describing an individual who works for wages or a salary and performs services or work for an employer.
Workers compensation
A payment from an employer to an employee for injuries or illness caused at work.
Workforce
The entire population available for work, either employed or unemployed.
Working conditions
The physical environment in which a person works, including the actual space, the quality of ventilation, heat, light and degree of safety.
Workplace
Any place where people are employed or working.
Workplace bargaining
Wrongful dismissal
See: Unfair dismissal
Youth wage
Most awards make provision for adult and junior wages. Minimum rates for the latter tend to be lower than those for adults. They are often differentiated for various age groups. See also: Junior employees
