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ARTICLE · 05 SEPTEMBER 2019

Key changes to modern award annualised salaries

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Non-complying employers could be exposed to underpayment claims with penalties for breaches of the modern award.

AustraliaEmployment and HR
Natasha Jones
Natasha Jones
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As part of the four yearly review of modern awards, the Fair Work Commission (FWC) has recently handed down a decision which will impact employers paying annualised salaries to employees covered by a modern award with an annualised salary clause 1. The FWC decision finalises the terms of three new standard 'annualised wage arrangement' clauses, which will replace the existing annualised salary clauses in the 19 modern awards already containing an annualised salary clause. The new terms will also be inserted into three modern awards which have not previously had an annualised salary clause 2.

The modern awards which will be impacted by the decisions are listed in the three categories below this article, and include some modern awards with the most widespread coverage, including the Clerks – Private Sector Award 2010, the Manufacturing and Associated Industries and Occupations Award 2010 and the Banking, Finance and Insurance Industry Award 2010.

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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