Employment Law glossary
Australian employment law has its own vocabulary — terms that appear in the Fair Work Act 2009, the modern awards system, Fair Work Commission decisions, and state anti-discrimination frameworks. This glossary covers 40 of the most commonly used.
This is a glossary of 40 key terms used in Australian employment law. Each term has a plain-English definition and a reference to the Fair Work Act 2009 (Cth) or relevant authority where applicable. Use it as a reference for client conversations, briefings, or junior lawyer training.
Definitions
Adverse action
Conduct that disadvantages an employee — including dismissal, demotion, or threats of these. Adverse action because of a workplace right is prohibited under general protections.
Annual leave
Paid leave entitlement for full-time and part-time employees, accruing progressively under the National Employment Standards. The standard entitlement is 4 weeks per year.
Award
A modern award — a legal instrument made by the Fair Work Commission setting out minimum terms and conditions for employees in a particular industry or occupation.
Better Off Overall Test (BOOT)
The test the Fair Work Commission applies to enterprise agreements — each employee must be better off overall under the agreement than under the relevant modern award.
Casual conversion
The right of a long-term casual employee to request conversion to permanent employment after meeting eligibility criteria (typically 12 months service plus regular hours).
Casual employee
An employee with no firm advance commitment to ongoing work, paid a casual loading instead of paid leave entitlements. Defined in the Fair Work Act.
Casual loading
An additional percentage paid to casual employees in lieu of paid leave entitlements. Set by the relevant modern award (typically 25%).
Constructive dismissal
A dismissal that occurs when an employer makes the employment so intolerable that the employee resigns. Treated as a dismissal by the employer for unfair dismissal purposes.
Disclosure
The obligation on an employer to disclose information to employees about proposed redundancies, restructures, or other significant workplace changes — required by some awards and agreements.
Enterprise agreement
A collective agreement between an employer and its employees (often via a union) setting out terms and conditions of employment. Must pass the BOOT and be approved by the FWC.
Fair Work Act
The Fair Work Act 2009 (Cth) — the primary federal employment law in Australia. It sets out the NES, modern awards, unfair dismissal, and other workplace rights.
Fair Work Commission (FWC)
The federal industrial relations tribunal that deals with unfair dismissal claims, modern awards, enterprise agreements, and other matters under the Fair Work Act.
Fair Work Information Statement
A statement that must be given to all new employees on commencement, summarising the NES, modern awards, agreement-making, and FWC role.
Fixed-term employee
An employee engaged for a defined period or until completion of a specific task. Subject to NES protections and recent reforms limiting use of fixed-term contracts.
Flexibility request
A formal request by an eligible employee for flexible working arrangements (such as part-time hours or work from home). The employer must consider it under section 65.
Form F2
The Fair Work Commission application form for an unfair dismissal claim. Must be filed within 21 days of dismissal.
Form F8C
The Fair Work Commission form used by an employer to respond to an unfair dismissal application.
General protections
A set of provisions in the Fair Work Act protecting workplace rights, freedom of association, and protection from discrimination. Adverse action because of a protected attribute is prohibited.
Genuine redundancy
A dismissal that occurs because the employer no longer requires the role to be performed by anyone, after consultation in accordance with applicable award or agreement provisions.
Harsh, unjust or unreasonable
The test for unfair dismissal under the Fair Work Act. The FWC considers a list of factors including the reason for dismissal and procedural fairness.
High income threshold
The annual earnings limit above which an employee not covered by an award or agreement loses access to unfair dismissal jurisdiction. Adjusted annually.
Independent contractor
A person engaged to provide services under a contract for services, rather than as an employee under a contract of employment. Subject to different legal frameworks.
Long service leave
Paid leave entitlement for employees with extended periods of continuous service, governed by state legislation. Entitlement varies by state.
Minimum employment period
The minimum length of employment required before an employee can claim unfair dismissal — 6 months (12 months for small business employees).
Misconduct
Behaviour that breaches the terms of employment or workplace rules. Serious misconduct may justify summary dismissal.
National Employment Standards (NES)
The 11 minimum employment standards that apply to all national system employees in Australia. Cannot be displaced by award or agreement.
Notice period
The period of notice an employer must give before terminating employment, set by the NES based on the employee's length of continuous service.
Parental leave
Unpaid leave entitlement for eligible employees under the NES, for the birth or adoption of a child. Up to 12 months, with the right to request a further 12 months.
Pay in lieu of notice
Payment to an employee instead of requiring them to work out their notice period. The amount equals what the employee would have earned during the notice period.
Permanent employee
A full-time or part-time employee with a firm advance commitment to ongoing work, entitled to paid leave under the NES. Distinct from casual employees.
Personal/carer's leave
Paid leave entitlement for personal illness or to care for a family member, accruing under the NES. The standard entitlement is 10 days per year for full-time employees.
Procedural fairness
The requirement that an employer follow a fair process before dismissing an employee — including notice of allegations, opportunity to respond, and consideration of the employee's response.
Redundancy
Termination of employment because the employer no longer requires the role to be performed. Eligible employees are entitled to redundancy pay under the NES.
Restraint of trade
A clause in an employment contract restricting the employee's ability to compete with the employer after employment ends. Enforceable only if reasonable.
Sham contracting
Misrepresenting an employment relationship as an independent contractor relationship to avoid employee entitlements. Prohibited under the Fair Work Act.
Small business employer
An employer with fewer than 15 employees. Subject to the Small Business Fair Dismissal Code and a longer minimum employment period for unfair dismissal.
Stop bullying order
An order made by the FWC requiring conduct to stop or workplace practices to change to address workplace bullying.
Summary dismissal
Dismissal without notice for serious misconduct. Examples include theft, fraud, and serious safety breaches. Must be justified by genuinely serious misconduct.
Unfair dismissal
Dismissal that is harsh, unjust, or unreasonable. An employee can apply to the FWC within 21 days of dismissal seeking reinstatement or compensation.
Workplace right
A right protected under the Fair Work Act — including the right to make a complaint, participate in proceedings, or be a union member. Adverse action because of a workplace right is prohibited.
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