ARTICLE · 18 MARCH 2020

Annualised salaries what should an employer do?

Kells

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Article outlines the things that an employer should do when providing an annualised salary.

AustraliaEmployment and HR

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Background

Many employers use an annualised salary arrangement. The alternative is to pay the award to employees and any additional entitlements (such overtime and penalty rates) as and when they fall due.

In 2019 the Fair Work Commission conducted a review of a number of modern awards. As part of the review the Commission finalised the terms of a new standard 'annualised wage arrangement clauses'. 22 modern awards have been varied. The individual awards should be checked. These changes are effective from 1 March 2020.

What should an employer do?

There are number of things that an employer should do. These include:

Have an accurate system that records the start time and finish time together with any breaks for all award employees.

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