A large number of employers will be affected by the introduction of new annualised salary provisions from 1 March 2020. Over 20 modern awards will have the new or amended annualised salary provisions and it may mean big (or small) changes for your business.
We have recently seen an increasing number of underpayment claims and a renewed focus by the Fair Work Ombudsman on pursuing these claims. Even if the new provisions do not apply to your business, it is a timely reminder to undertake an assessment of your agreements and record-keeping procedures to ensure you are compliant and minimise the risk of being on the receiving end of an underpayment claim.
Do you currently pay a salary to your award employees?
If you are already paying a salary to affected employees, you will fall into one of the following categories:
- Paying salary but no written agreement or employment contract
- Paying salary under an agreement or employment contract that has no buyout or offset clauses (or clauses are non-compliant)
- Paying salary under an employment contract with comprehensive and compliant buyout and offset clauses
Regardless of which category you fall into, it is likely you will need to make some changes to your documentation and/or record-keeping procedures in order to ensure you comply with the award and/or legislative requirements. Even if you fall into category 3, you need to ensure you can satisfy your obligations regarding your employees’ minimum award entitlements.
If you are not already paying but intend to introduce annual salaries, you have options of how to implement this based on your business needs and objectives.
What do you need to do?
At the very least you should review your current arrangements. The course of action will depend on the award that applies and your current arrangements- and it may be a simple solution without any need to amend current contracts.
How we can help
For a fixed fee we can advise you on:
- How the new provisions affect your business
- How you can ensure compliance based on your current arrangements and objectives
- What changes (if any) you need to make