132Guide to this Part

132  Guide to this Part This Part provides for the FWC to make, vary and revoke modern awards. Modern awards may set minimum terms and conditions for national system employees in particular industries or occupations. Modern awards can have terms that are ancillary or supplementary to the National Employment Standards (see Part 2‑1). Division 2 provides for the modern awards objective. This requires the FWC to ensure that modern awards, together with the National Employment Standards, provide a fair and relevant minimum safety net of terms and conditions, taking into account certain social and economic factors. Division 2 also contains special provisions about modern award minimum wages. Division 3 deals with the terms of modern awards. Division 4A provides for the FWC to conduct 4 yearly reviews of default fund terms of modern awards. It also sets out the process for making the Schedule of Approved Employer MySuper products in a 4 yearly review, and amending the schedule after it is made to include other employer MySuper products. If an employer MySuper product is on the schedule, an employer covered by a modern award can make contributions, for the benefit of a default fund employee, to a superannuation fund that offers the product (see subsection 149D(1A)). Division 5 provides for the FWC to exercise modern award powers in certain circumstances. Division 6 contains some general provisions relating to modern award powers. Division 7 contains additional provisions relating to modern enterprise awards. Division 8 contains additional provisions relating to State reference public sector modern awards. The obligation to comply with a modern award is in section 45 (in Part 2‑1). In relation to minimum wages in modern awards, the FWC has powers both under this Part and under Part 2‑6 (which deals with minimum wages). The following is a summary of the FWC’s powers under the 2 Parts:  (a) the initial making of a modern award setting modern award minimum wages can only occur under this Part;  (b) the main power to vary modern award minimum wages is in annual wage reviews under Part 2‑6;  (c) modern award minimum wages can also be varied under this Part, but only for work value reasons or in other limited circumstances;  (d) modern award minimum wages can be set (otherwise than in the initial making of a modern award) or revoked either under this Part or in annual wage reviews under Part 2‑6. 133  Meanings of employee and employer Division 2—Overarching provisions 134  The modern awards objective What is the modern awards objective?  (1) The FWC must ensure that modern awards, together with the National Employment Standards, provide a fair and relevant minimum safety net of terms and conditions, taking into account:  (a) relative living standards and the needs of the low paid; and  (aa) the need to improve access to secure work across the economy; and  (ab) the need to achieve gender equality in the workplace by ensuring equal remuneration for work of equal or comparable value, eliminating gender‑based undervaluation of work and providing workplace conditions that facilitate women’s full economic participation; and  (b) the need to encourage collective bargaining; and  (c) the need to promote social inclusion through increased workforce participation; and  (d) the need to promote flexible modern work practices and the efficient and productive performance of work; and  (da) the need to provide additional remuneration for:  (i) employees working overtime; or  (ii) employees working unsocial, irregular or unpredictable hours; or  (iii) employees working on weekends or public holidays; or  (iv) employees working shifts; and  (f) the likely impact of any exercise of modern award powers on business, including on productivity, employment costs and the regulatory burden; and  (g) the need to ensure a simple, easy to understand, stable and sustainable modern award system for Australia that avoids unnecessary overlap of modern awards; and  (h) the likely impact of any exercise of modern award powers on employment growth, inflation and the sustainability, performance and competitiveness of the national economy. This is the modern awards objective. When does the modern awards objective apply?  (2) The modern awards objective applies to the performance or exercise of the FWC’s modern award powers, which are:  (a) the FWC’s functions or powers under this Part; and  (b) the FWC’s functions or powers under Part 2‑6, so far as they relate to modern award minimum wages. Note 1: The FWC must also take into account the objects of this Act and any other applicable provisions. For example, if the FWC is setting, varying or revoking modern award minimum wages, the minimum wages objective also applies (see section 284). Note 2: Further, the FWC must take into account the road transport objective when performing certain functions: see section 40D and subsection 617(10B).