A statutory instrument created by the Fair Work Commission setting a benchmark of minimum terms and conditions of employment often used to assess enterprise agreements for approval. Together with the National Employment Standards, they provide a minimum safety net of terms and conditions for national system employees.

A modern award typically covers national system employees in an entire industry or occupation. Depending on the activities of its employees, a business may be covered by more than one award.

Modern awards contain several standard clauses including those dealing with:

Modern awards are made and varied by the Fair Work Commission.