2020 Modern Award Changes to Salary Employees

February 18, 2020

2020 Modern Award Changes to Salary Employees

Fair Work Changes to Annual Salaries

If you have not yet heard about the Fair Work Changes to Annual Salaries read this article for more information on what you need to know, what the changes are and how to get ready for the changes. 

What do I need to know?   

In a recent four-yearly review of the current award regime, the Fair Work Commission has decided to make changes to annualised salary clauses. The reason for these changes is to make sure that the current annual salary agreements do not disadvantage salaried employees.    

New annualised salary provisions for full-time employees have been inserted into a range of Modern Awards.  

The changes will take effect from on the 1st of March 2020 and employers should be familiar with the changes that apply to their award. The new annual salary clause is very similar across the awards. An essential difference to some of the awards is that employee consent is compulsory for the arrangement.    


What are the changes?   

Notifying your Employees: As an Employer, you must inform your employees in writing of the following:   

  • The annual salary payable   
  • The method used to calculate yearly salary    
  • The award provisions satisfied by the annual salary   
  • The maximum amount of ordinary hours   
  • The maximum amount of overtime hours the employee may be required to work in a pay period  

Attendance Records: Employers must keep a record of start and finish times and unpaid breaks taken by employees. The employees must then sign off and approve their timesheets each pay period/cycle.    

Annual Wage Reconciliation: Employers will have to calculate the remuneration that would have been payable to the employee under the award based on their actual hours worked for the year and compare the annual salary that the employee received. If there is any shortfall between the remuneration paid the employer must pay the outstanding amount within 14 days. This is conducted after 12 months of salary arrangement or when the employee is terminated.    

Overtime Payments: Employers must pay employees according to the award requirements in respect to the overtime or penalty rates for any additional hours worked about the number of ordinary hours in a pay period.    


What should I do to get ready for the changes?   

These changes will increase the administrative burden with respect to documenting the assumptions which underpin annualised salaries. In some cases require payment of additional penalties when those assumptions are exceeded.

It is essential to become familiar with the award changes. You may need to prepare for these changes in advance by implementing a new method of recording your salary employees work hours. That’s where we come in, Aussie Time Sheets offer a range of easy to use solutions to help you keep track of your employee work hours.   


How do I find out more?   

If you have any questions about the upcoming changes, please contact our sales consultants on 1300 309 339 or email sales@aussietimesheets.com.au 

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