Document ID: chunk:federal_register_of_legislation:C2025C00150:section:206
Version: federal_register_of_legislation:C2025C00150
Segment Type: section
Provision Reference: s 206
Character Range: 597861–599620

206  Base rate of pay under an enterprise agreement must not be less than the modern award rate or the national minimum wage order rate etc.

If an employee is covered by a modern award that is in operation
 (1) If:
 (a) an enterprise agreement applies to an employee; and
 (b) a modern award that is in operation covers the employee;
the base rate of pay payable to the employee under the agreement (the agreement rate) must not be less than the base rate of pay that would be payable to the employee under the modern award (the award rate) if the modern award applied to the employee.
 (2) If the agreement rate is less than the award rate, the agreement has effect in relation to the employee as if the agreement rate were equal to the award rate.

If an employer is required to pay an employee the national minimum wage etc.
 (3) If:
 (a) an enterprise agreement applies to an employee; and
 (b) the employee is not covered by a modern award that is in operation; and
 (c) a national minimum wage order would, but for the agreement applying to the employee, require the employee's employer to pay the employee a base rate of pay (the employee's order rate) that at least equals the national minimum wage, or a special national minimum wage, set by the order;
the base rate of pay payable to the employee under the enterprise agreement (the agreement rate) must not be less than the employee's order rate.
 (4) If the agreement rate is less than the employee's order rate, the agreement has effect in relation to the employee as if the agreement rate were equal to the employee's order rate.

Division 7—Variation and termination of enterprise agreements

Subdivision A—Variation of enterprise agreements by employers and employees: general circumstances