ARTICLE · 23 DECEMBER 2009

"High Income Guarantees - Have you got it right?"

Norton Rose Fulbright Australia

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If your business is subject to the Fair Work Act 2009 (Cth), on 1 January 2010, modern awards commence operation and apply to employees covered by the scope of the modern award.

AustraliaEmployment and HR

Elaine Wambeck

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Why give a high income guarantee?

If your business is subject to the Fair Work Act 2009 (Cth), on 1 January 2010, modern awards commence operation and apply to employees covered by the scope of the modern award.

However, modern awards do not apply where an employee is:

covered by an enterprise agreement
a high income employee.

For an employee to be a "high income employee", he or she must have a written guarantee of annual earnings from their employer for a guaranteed period, and the guarantee of annual earnings exceeds the high income threshold (currently $108,300).

What is required for a compliant high income guarantee?

When giving a high income guarantee, employers must ensure that:

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