New rules around annual salaries came into effect for many industries and occupations on 1 March 2020. It now means that some employers who could not previously employ staff on an annual salary may be able to now.
Under these changes, certain conditions must be met including that the employee remains better off under the salary arrangement than they would have if employed on an hourly rate.
Some industries which already allow for annualised salaries will also fall under the new provisions and may need to change how they are currently managing their salaried workers.
The new rules affect the following awards: Banking, Finance and Insurance Award, Broadcasting Award, Clerks Award, Contract Call Centres Award, Horticulture Award, Hydrocarbons Industry (Upstream) Award, Legal Award, Local Government Award, Manufacturing Award, Mining Award, Oil Refining and Manufacturing Awards, Pastoral Award, Pharmacy Award, Rail Award, Salt Award, Telecommunications Award, Water Award, Wool Award.
If you have employees who are paid an annual salary or have employees who you wish to convert to an annual salary under the new rules, we recommend you seek advice to ensure you are complying with your obligations. Non-compliance can result in significant penalties.
If you require assistance, please contact our workplace law team