It has been almost two and a half years since the new modern
award system was introduced on 1 January 2010.
Employers, some of whom have employees that are covered by a
modern award for the first time as a result of the wider reach of
the new system, have had time to familiarise themselves with the
new system, and have had to determine how to meet their obligations
in a commercial manner.
Here are our top tips for dealing effectively with the
application of modern awards to your workforce:
1. Enter into high income guarantees
Employers can exclude the operation of modern awards that cover
employees earning over $118,100 per year ($123,300 from 1 July
2012, indexed annually) by guaranteeing their annual earnings. This
amount excludes payments that cannot be determined in advance (e.g.
commissions, bonuses or overtime), reimbursements and compulsory
superannuation contributions.
