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Since 1 March 2020 employers who pay annualised salaries in accordance with modern award provisions need to ensure their arrangements comply with new model ‘annualised wage arrangement’ clauses.
These new clauses have replaced previous annualised salary provisions in numerous modern awards and further changes will be implemented in more modern awards at a later date.
The model clauses expand employer obligations in relation to employee notification and record keeping, as well as wage reconciliation for employees paid a modern award annualised salary.
Among other things, employers need to inform employees of the ‘outer limit’ of penalty rate hours and overtime hours they may work in a pay period before being entitled to further payment under the award.
The Fair Work Commission has released four different model clauses, with clauses 1 and 3 effective from 1 March 2020.
This article also features in the March 2020 issue of Hunter Business Review.
For further information and assistance on the issues raised in this article please speak to the authors, Elizabeth Radley, Partner, or Fiona Hancock, Special Counsel, or your usual Moray & Agnew contact.