Australian Offer Letter Checklist: Award, Super and the FWIS

What an Australian offer letter has to cover

The Fair Work Act 2009 does not require one standard offer letter template. What it does require is that the employee receives the correct minimum terms, and the offer letter is the simplest place to record them. Most of those minimum terms come from three places: the National Employment Standards, which set the baseline entitlements for all employees, the modern award that covers the employee's industry or occupation, and the employee's own contract. The letter should match all three, or it will create a dispute later.

The table below is a practical checklist. Each row names an item, what to write, and where the rule comes from. Treat it as a starting point, not a legal opinion, because award coverage depends on the actual duties of the role.

How to work out the award figure, step by step

Start with the award, not the salary you want to pay. Ask what the role does day to day, then find the modern award that covers that industry or occupation. The Fair Work Commission uses a principal purpose test to decide which classification fits the work, so job titles alone do not settle it. The coverage clause in each award, usually clause 4, describes who the award covers. Where two awards overlap, the Commission's approach looks at the most suitable classification for the work and the industry.

Next, read the classification table in the award and pick the level that matches the duties, skills and responsibilities. Then check the pay rate for that level on the Fair Work Ombudsman's pay information for the current year. Your letter must be at least that rate. Pay above the rate is allowed, but the letter should say whether the extra amount is a loading, an allowance, or simply a higher salary, so it is clear what the employee receives for overtime and penalty work.

Finally, check the floor. Under the 2026 Annual Wage Review decision, the National Minimum Wage rose to $26.44 per hour, or $1,004.90 per week, from 1 July 2026. Modern award minimum rates rose by 4.75% from the first full pay period on or after the same date. The lowest ongoing classification in any modern award must now be at least $1,004.90 per week. If your letter quotes a rate set before that date, update it before you send the letter.

For super, multiply the qualifying earnings for the period by the rate. The superannuation guarantee rate is 12% for 2026-27, the same as the year before. Under Payday Super, which started on 1 July 2026, the contribution must generally reach the employee's fund within seven business days of payday, so the payroll system needs to be set up for this before the first pay run.

Worked example: a full-time role on a weekly rate

Suppose you are offering a full-time role at $1,200 per week ordinary pay. This is an illustration, not a published award rate. Assume the award classification you have chosen has a minimum of $1,150 per week, so the offer is above the minimum. The letter should name the award, the classification and the $1,200 figure, then state that the rate is above the award minimum.

Super is 12% of the earnings base. For a $1,200 week, the employer contribution is $144. Over 52 weeks, that is $7,488 per year. Because $62,400 in annual earnings is well below the annual maximum contribution base of $270,830 for 2026-27, the cap does not reduce this figure. The letter should show the 12% rate and say the contribution is paid on top of the $1,200, not taken out of it. A payslip that shows super as a deduction is a common error.

Now add the probation clause. If the contract says three months, the letter should say so, and state that the employee keeps the same National Employment Standards entitlements during probation. Then add the line about the Fair Work Information Statement. The employee should get that document on the first day or as soon as possible after it, and it should be the current version.

Cases that change the answer

Resignation changes what you need to keep on file, not what you must write. The Fair Work Information Statement must be given to each employee before or as soon as practicable after they start, but the law does not require you to give it more than once in any 12 months. If someone leaves and is rehired within that window, you do not need to hand over a second copy. The notice an employee must give when resigning is set by the National Employment Standards and the award, so the letter should state the period in plain words rather than just pointing to the award.

Contract type changes the paperwork. Casual employees must also receive the Casual Employment Information Statement at the same time, and it must be provided again at set times during their employment. Employees on a fixed term contract must receive the Fixed Term Contract Information Statement before or as soon as possible after entering the contract. A casual or fixed term letter that copies a permanent template is one of the most common errors in this area.

Minimum service affects unfair dismissal rights, not the award. Commentary from Australian employment advisers puts the minimum employment period at 6 months for employers with 15 or more employees, and 12 months for employers with fewer than 15. Check the current figure on the Fair Work Commission's unfair dismissal pages before you rely on it. Probation does not switch off these rights, and a probation period is not a separate kind of employment. The Fair Work Ombudsman says probation is usually set by the employer and often ranges from three to six months.

Caps matter for high earners. Super is paid only on earnings up to the annual maximum contribution base, which is $270,830 for 2026-27. That means the maximum employer contribution is about $32,500 for the year. This is separate from the concessional contributions cap, which limits what can go into super with tax concessions, and is also shown as $32,500 for 2026-27 in recent commentary. Check both figures against the ATO's current rates before you write them into a letter.

Exclusions can take the employee out of the award altogether. Some employees on high incomes, where the employer guarantees in writing that annual earnings will be at least the high income threshold, may not be covered by a modern award. The National Employment Standards still apply. The threshold is indexed each year, so use the figure on the Fair Work Commission's site, not an old number from a template. Award-free employees are protected by the National Minimum Wage and the National Employment Standards, and the offer letter should not promise less than those.

A registered enterprise agreement can also replace the award. If the workplace has one, the letter should name the agreement, not the award, and the classification and rates must come from the agreement. Check this before you draft the letter.

Common mistakes to avoid

• Writing a salary without naming the award or classification, which leaves the employee and the employer arguing later about which rate applies.
• Stating a total package that includes super, when super is paid on top of wages and should be shown as a separate line.
• Quoting a rate set before 1 July 2026 without checking whether the 4.75% award increase applies to that classification.
• Giving an old copy of the Fair Work Information Statement. The current version is dated July 2026 and should be used for all new starters.
• Using the same letter for casual and fixed term staff, and leaving out the Casual Employment Information Statement or the Fixed Term Contract Information Statement.
• Assuming a probation period removes unfair dismissal rights, or that a three-month probation means no protection for three months.
• Missing the payday super deadline. Payday Super requires the contribution to reach the fund within seven business days of payday, which is easy to miss in a new payroll.

Automation has limits here. A system can copy the award rate into a letter, but it cannot decide which classification fits the duties. A person still needs to read the duties, confirm the coverage clause and decide what the letter promises.

What to check with HR or a lawyer

Before you send any offer, confirm four things with your HR adviser or an employment lawyer. First, that the award or enterprise agreement you have chosen actually covers the role and the classification fits the principal purpose of the work. Second, that the pay rate is at or above the classification minimum as it stands on the start date. Third, that the probation clause and notice clauses match what the award and the National Employment Standards require. Fourth, that your payroll is set up for super and the Payday Super deadline.

Where a classification or pay term is changed after the offer, agree the change with the employee in writing. The notice, consultation and severance rules in the Fair Work Act 2009 apply to changes that affect an employee's role or hours, so do not change terms unilaterally.

This explains the rule in general terms; it is not legal or tax advice for your case.

How AI workers take routine HR and payroll work off staff

Much of the work described above repeats for every new hire: pulling the start date and employment type from the HR file, matching the role to a classification, checking the rate against the current minimum, calculating the super line, and tracking whether the information statement was sent. AI workers can run those steps on a schedule, connected to the HR system and the payroll file, and flag any mismatch to a person. The person still reviews the classification and approves the letter, so the work moves from keying data to checking decisions.