What is the NES?¶

Australia sets a floor of basic rights for most employees. That floor is called the National Employment Standards, or the NES for short. Fair Work explains that the NES are the minimum entitlements that apply to most employees in the national workplace system.

Fair Work sets out 11 minimum entitlements in the NES. Several of them are kinds of leave, which is why the NES matters so much when you run payroll.

In one line

The NES are the minimum employment entitlements for most employees — 11 of them, including several kinds of leave — and no award or agreement can go below them.

Why this matters¶

If you employ people, the NES is the baseline you have to meet. You cannot pay or treat an employee below it, even if they agree to it. Knowing what the NES covers helps you set up an employee correctly and understand where the leave rules come from.

What you will learn¶

What the National Employment Standards are
The kinds of entitlements the NES covers
How awards and agreements sit on top of the NES

Understanding the concept¶

The NES is a set of minimum entitlements written into national workplace law. Fair Work lists 11 of them. In plain terms they cover:

Maximum weekly hours
Requests for flexible working arrangements
Casual employment (including the right to become permanent)
Parental leave and related entitlements
Annual leave
Personal (sick) and carer's leave, compassionate leave, and paid family and domestic violence leave
Community service leave
Long service leave
Public holidays
Notice of termination and redundancy pay
Superannuation

Fair Work groups these as its 11 entitlements. On top of them, employers must also give new employees a Fair Work Information Statement, and a Casual Employment Information Statement for casual employees.

An award is an industry or job document that sets minimum pay and conditions for a type of work. An agreement is a workplace deal made between an employer and employees. Fair Work explains that an award or agreement can add to the NES — for example, better leave — but it cannot take away from it or offer less. The NES always wins if a rule tries to go below it.

For accountants & bookkeepers

The NES applies to employees in the national system. A small number of entitlements (such as maximum weekly hours and public holidays) extend to some non-national-system employees, but for most businesses the NES is the relevant floor. Awards, enterprise agreements and individual contracts sit on top and may improve on the NES, never reduce it. Where a contract term is less than the NES, the NES term applies.

Example¶

A cafe owner hires a full-time employee. The owner checks the relevant award for the pay rate. On top of that, the NES gives the employee entitlements such as paid annual leave and paid sick and carer's leave. The award might offer more than the NES minimum on some points, but it can never offer less. So the owner sets the employee up to receive at least the NES entitlements, plus anything extra the award requires.

Common mistakes¶

Thinking an employee can agree to less than the NES — they cannot.
Assuming the award is the only thing that matters — the NES sits underneath it.
Believing the NES only covers pay — it also covers several kinds of leave and more.

How this works in myaccountant¶

In the app — when you set up an employee, you choose their employment type and their leave settings. myaccountant then tracks their leave balances and accrues leave each pay run, so the entitlements that flow from the NES are reflected in each pay.

Key points¶

The NES are the minimum employment entitlements for most employees.
Fair Work sets out 11 NES entitlements, several of which are kinds of leave.
The NES covers areas such as annual leave, sick and carer's leave, and public holidays.
Awards and agreements can add to the NES but never go below it.
An employee cannot agree to less than the NES.

Learn next¶

General information only — not tax, super or financial advice.

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