The Fair Work Commission have recently made a decision which will change annualised salary provisions under a number of Modern Awards from 1 March 2020 onwards. If an applicable award covers your employee(s), your obligations for paying employee salaries are going to change.
Employees on annualised salaries are now required to be placed on an ‘Annualised salary arrangement’. This agreement will need to detail what the salary package includes and how the payment has been calculated. It must also detail the outer limit number of hours an employee may be required to work within a pay period as compensated through the annualised salary. Meaning a ‘fair and reasonable’ amount of overtime will no longer be accepted and must be quantified as a maximum number of hours in the agreement.
The agreement is the first step, the second step is that all annualised salary employees must keep a record of the start and finish times. This means TIMESHEETS for all salaried staff members.
If you don’t pay your staff properly you are in breach of the Award and penalties will apply. Ensure you don’t fall short of your obligations by getting the right advice. Sally Desch and the team at HRM Contracting and Consulting are abreast of the new changes and can guide you with advice on your existing agreements, drafting Annual Salary Arrangement documents and ongoing compliance needs. Feel free to contact her and the team for more advice, to ensure you are protected: https://www.hrmcc.com.au/