Coverage terms must be included
(1) A modern award must include terms ( coverage terms ) setting out the employers, employees, organisations and outworker entities that are covered by the award, in accordance with this section.
Employers and employees
(2) A modern award must be expressed to cover:
(a) specified employers; and
(b) specified employees of employers covered by the modern award.
(3) A modern award may be expressed to cover one or more specified organisations, in relation to all or specified employees or employers that are covered by the award.
(4) A modern award may be expressed to cover, but only in relation to outworker terms included in the award, specified outworker entities.
How coverage is expressed
(5) For the purposes of subsections (2) to (4):
(a) employers may be specified by name or by inclusion in a specified class or specified classes; and
(b) employees must be specified by inclusion in a specified class or specified classes; and
(c) organisations must be specified by name; and
(d) outworker entities may be specified by name or by inclusion in a specified class or specified classes.
(6) Without limiting the way in which a class may be described for the purposes of subsection (5), the class may be described by reference to a particular industry or part of an industry, or particular kinds of work.
Employees not traditionally covered by awards etc.
(7) A modern award must not be expressed to cover classes of employees:
(a) who, because of the nature or seniority of their role, have traditionally not been covered by awards (whether made under laws of the Commonwealth or the States); or
(b) who perform work that is not of a similar nature to work that has traditionally been regulated by such awards.
Note: For example, in some industries, managerial employees have traditionally not been covered by awards.