• Jay Sharpe



It is common practice for employers to pay an “annualised salary”.

However, from 1 March 2020 new annualised salary clauses have been introduced into 23 Modern Awards which have created new notification, record-keeping and wage reconciliation obligations on employers who are covered by such Modern Awards and who choose to utilise these arrangements.

What do you have to do as an Employer?

To make sure your business does not breach the new obligations you should:

  • ensure you have correctly identified the Modern Awards that have application apply to your business and review how the new obligations impact upon your current salary arrangements;

  • ensure that any annualised salary arrangements (current and future) is consistent with the terms of the Modern Awards that apply;

  • ensure that you have the necessary records in place to support any current or future annualised salary arrangement and ensure you conduct reconciliations on an annual basis or on the termination of employment; and

  • if identified rectify any deficiencies in your annualised salary arrangements promptly to avoid any penalties under the legislation.

All annualised salary arrangements must be supported by comprehensive written employment agreements and employers need to have in place good record keeping systems to ensure they are not paying their employees in contravention of the Modern Awards or the National Employment Standards.

Some of the common Modern Awards that have changed include the Clerks – Private Sector Award 2010, the Hospitality Award 2010 and the Manufacturing and Associated Industries and Occupations Award 2010 and the Hospitality Award 2010.

If you are unsure of whether or not these changes impact your business or if you need assistance to implementing such changes, please contact the Sharpe Workplace Solutions team by email or call on (07) 46915046.

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