• Menu
  • Skip to right header navigation
  • Skip to primary navigation
  • Skip to secondary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

Call us now  07 4688 2188

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Clifford Gouldson Lawyers

  • About
    • Our Origin Story
    • Our Manifesto
    • Our Future
  • Careers
  • Community
  • Contact Us
  • Search
  • About
    • Our Origin Story
    • Our Manifesto
    • Our Future
  • Careers
  • Community
  • Contact Us
  • Search

Mobile Menu

  • Our Team
  • Practice Areas
  • Knowledge
  • Events
  • Industries
  • For Individuals
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube
  • Our Team
  • Practice Areas
  • Knowledge
  • Events
  • Industries
  • For Individuals

Significant changes to annual salaries

You are here: Home / News / Significant changes to annual salaries

Following the decision of the Fair Work Commission (FWC) in February of 2019, the obligations of employers who pay annual salaries are changing.

While the changes will vary between awards, starting on 1 March 2020 most employers who pay employees an annual salary will have to:

  1. Notify employees in writing of their annual salary;
  2. Outline which sections of the award will apply to the employee;
  3. Specify the employee’s maximum ordinary working hours (outside of the 38-hour workweek) – This will document the number of overtime or penalty rate hours included with the employee’s annual salary;
  4. Pay the employee (overtime or penalty rates) within the pay cycle for work done which exceeds the maximum ordinary working hours;
  5. Keep records of employee’s start, finish and unpaid break times. Employees should confirm the hours worked are accurate by signing the record;
  6. Reconcile a workers annualised salary every 12 months (from the commencement of starting an annual salary or termination of the employee) and if there is a shortfall, pay the employee any shortfall within two weeks. To determine the reconciliation amount, the employer should calculate the amount the employee would have been paid based on the hourly rate of the award. If the calculation is greater than the employee’s annual salary, the employee’s salary is to be reconciled and (if appropriate) topped up.

In certain awards, employees must agree to an annual salary. This means the employer can’t dictate whether their employees are paid a salary or on an hourly basis.

Failure to comply with an award (and changes to an award) can lead to significant financial penalties for the employer and individuals involved. One of the biggest mistakes an employer can make is assuming that if they pay an employee above award rates than all the obligations under the award is met. Employers must abide by all of the award’s terms.

This case serves as a good reminder to employers to continue to review their employment practices. Modern awards change frequently, and the onus is on businesses to stay up to date. Employers should subscribe to FWC email updates here, frequently review their employment practices and seek professional legal advice on how their business can comply with awards.

If you want more information about the specific changes coming March 1, or want to know if your business may be affected, please contact one of our Workplace Law team members.

Previous Post: « 31 December deadline looms large for QBCC licence holders
Next Post: Are your customers really accepting your website terms and conditions? »

Primary Sidebar

We can help

Danny Clifford

Principal/Director

Ben Foley

Special Counsel, Education & Workplace Law

Angela Pratt

Special Counsel

Ebony Archer

Associate

Kyle Paull

Lawyer

Michelle Price

Paralegal

Related Alerts

April 14, 2021
Cash is King – Payment Times Reporting for Large Business (>$100 m) in Australia

The Federal Government has released the payment times reporting rules (Payment Times Reporting Rules...

April 13, 2021
Casual employment reform – what do you need to know?

On 26 March 2021, the rights and obligations of casual employees outlined in the...

April 8, 2021
“Right to Disconnect” After Hours in Victoria Signifies a Substantial Change to the Modern Working Environment

Police officers in Victoria have this week won the “right to disconnect” from work...

View other alerts

Footer

Clifford Gouldson Lawyers

CLIFFORD GOULDSON LAWYERS
P: 07 4688 2188
F: 07 4688 2199
[email protected]
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Locations

TOOWOOMBA
Level 1, 610 Ruthven Street
PO Box 8208, Toowoomba South Qld 4350

BRISBANE
Level 54, 111 Eagle Street
Brisbane Q 4000

SUNSHINE COAST
Level 1,
Regatta Corporate Building
2 Innovation Parkway Birtinya QLD

 

MELBOURNE
Suite 37, Level 23,
Tower Five, 727 Collins Street
Melbourne VIC 3008
(Visited Office - available by appointment only)

SYDNEY
Suite 69, Level 26
1 Bligh Street
Sydney NSW 2000
(Visited Office - available by appointment only)

Practice Areas

  • Tax, Structures + Planning
  • Workplace
  • Litigation + Dispute Resolution
  • Commercial + Property
  • Construction
  • Intellectual Property
  • Privacy & Disclaimer
  • Terms of Use

Site Footer

CG Law (Trading) Pty Ltd ACN 143 426 028 t/a Clifford Gouldson Lawyers ABN 89 143 426 028 Liability limited by a scheme approved under professional standards legislation..

Copyright © 2021 Clifford Gouldson Lawyers · Privacy & Disclaimer · Terms of Use · Marketing by John Gray Marketing · Site by Kingfisher