From 1 March 2020, a significant number of employers will be required to comply with new and onerous annualised wage requirements. These requirements will be incorporated into a number of Modern Awards, including the Clerks-Private Sector Award 2010 (Clerks Award), Mining Industry Award 2010, Restaurant Industry Award 2010 and the Health Professionals and Support Services Award 2010 to name a few.
The obligations (which may differ depending on the applicable Modern Award) include:
- For some employers there is a requirement to agree with their employees to pay an annualised wage, while some permit the employer to unilaterally elect to pay an annualised wage;
- All employers must identify the Modern Award provisions satisfied by the annualised wage;
method of calculation of the annualised wage (which is prescribed in
the Modern Award amendments) must be identified to employees paid an
annualised wage and:
- For some employers it requires a calculation based on assumptions of overtime and penalty rates the employee may be required to work; or
- For other employers it requires payment of an annualised wage calculated according to a percentage amount above the minimum wage (both the percentage and the minimum wage is prescribed in the applicable Modern Award);
- Recording time worked by employees for each pay or roster cycle; and
- Audits, annually from the commencement date of the employee’s employment, to confirm the annualised wage compensated the employee for all hours worked and allowances otherwise payable under the applicable Modern Award.
The absence of uniformity across all the Modern Awards makes a difficult area for employers to navigate. Non-compliance may also lead to significant penalties for the employer and those involved in the non-compliance.
GRT Lawyers will be running a number of information forums to ensure you are compliant with these new laws. As such, GRT Lawyers will be sending out more information about this forum, but in the meantime, if you would like further information about these amendments and their application to your business please contact Allana Agnew and Ashley Hill.
For more information, please contact us.