KEEPING UP TO DATE

Annualised Salaries Changes
Steps to help you navigate through the changes

5 July 2020

BOOK YOUR OBLIGATION FREE CONSULTATION WITH AN IMPACT HR PAYROLL EXPERT HERE

Recently the Fair Work Commission made a decision that NEW annualised salary provisions will be applied to a range of Modern Awards, commencing 1st March 2020 onwards. This change means, if your employee (s) is covered by an applicable award, your obligations for paying employee salaries are also going to change.

In this article Impact HR’s experts take a closer look at what defines an annualised salary/wage, what is changing, if you need to do anything and if so, steps you can take now to make it happen.

What is an annualised salary or wage?
An annualised salary or wage is when you pay an employee a total amount for the year, which is broken down into equal amounts every pay period. This annual amount can compensate the employee for any additional payments they might be entitled to under their specific award such as loadings, overtime, allowances, and penalties.

What is changing?
Changes to the legislation in March 2020 mean that simply paying an employee an “over award” annual salary or wage is no longer sufficient, even if there is an off-set clause in their contracts. Employers must have agreement in writing with their employees that they can pay an annualised salary and they must be able to prove that the employee was better off under this agreement than if they were paid being paid all the entitlements individually under the award.

Do you need to do anything?
If you answer yes to the following questions, then to ensure you comply with the changed legislation you need to follow the steps provided.

1. Do you employ anyone under one of the awards listed?

Oil Refining and Manufacturing Award 2010 (non-clerical employees)
Wool Storage, Sampling and Testing Award 2010
Clerks – Private Sector Award 2010
Local Government Industry Award 2010
Telecommunications Services Award 2010
Contract Call Centres Award 2010
Hydrocarbons Industry (Upstream) Award 2010
Water Industry Award 2010
Rail Industry Award 2010
Salt Industry Award 2010
Mining Industry Award 2010
Legal Services Award 2010
Pharmacy Industry Award 2010
Pastoral Award 2010
Banking, Finance, and Insurance Award 2010
Broadcasting and Recorded Entertainment Award 2010
Horticulture Award 2010

If you are not sure which award/s your team fall into

BOOK YOUR OBLIGATION FREE CONSULTATION WITH AN IMPACT HR PAYROLL EXPERT HERE

2. Do you pay (or wish to pay) any of those employees’ an annual salary or wage?

If you answered yes to the above question or are unsure of what you current process is,
BOOK YOUR OBLIGATION FREE CONSULTATION WITH AN IMPACT HR PAYROLL EXPERT HERE

If you answered yes to these questions and are ready to take action, click HERE to download your free Annualised Salary Checklist

Be confident that your HR systems are legally compliant, contact Impact HR’s payroll experts today!
BOOK YOUR OBLIGATION FREE CONSULTATION WITH AN IMPACT HR PAYROLL EXPERT HERE

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KEEPING UP TO DATE

Annualised Salaries Changes
Steps to help you navigate through the changes

5 July 2020

BOOK YOUR OBLIGATION FREE CONSULTATION WITH AN IMPACT HR PAYROLL EXPERT HERE

1. Do you employ anyone under one of the awards listed?

BOOK YOUR OBLIGATION FREE CONSULTATION WITH AN IMPACT HR PAYROLL EXPERT HERE

2. Do you pay (or wish to pay) any of those employees’ an annual salary or wage?

Be confident that your HR systems are legally compliant, contact Impact HR’s payroll experts today!
BOOK YOUR OBLIGATION FREE CONSULTATION WITH AN IMPACT HR PAYROLL EXPERT HERE

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KEEPING UP TO DATE

Annualised Salaries ChangesSteps to help you navigate through the changes

5 July 2020

BOOK YOUR OBLIGATION FREE CONSULTATION WITH AN IMPACT HR PAYROLL EXPERT HERE

Be part of the Impact HR Insights Community

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Annualised Salaries Changes
Steps to help you navigate through the changes