On 28 March 2008 a historic process of award modernization, by which Australia's award system will be fundamentally changed, began. Over 4000 existing federal awards and NAPSAs will be replaced by modern awards created primarily along industry lines, and occasionally along occupational lines. Modern awards will operate from January 2010 and, together with the National Employment Standards, will constitute the safety net under Labor's industrial relations system. This article considers some aspects of the award modernization process and the pivotal role of the AIRC in creating modern awards. This article also considers recent case law dealing with the implied duties to act in good faith and of mutual trust and confidence. Keywords: AIRC; award modernisation request; contract of employment; Fair Work Bill 2008; implied duty to act in good faith; implied duty of mutual trust and confidence; modern awards; priority industries; Workplace Relations Amendment (Transition to Forward with Fairness) Act 2008 Journal of Industrial Relations