Changes to annualised wage arrangements in modern awards to take effect from 1 March 2020
As you may be aware, the Fair Work Commission, as part of its four yearly review of modern awards, has determined to make significant changes to the annualised wage provisions in a number of modern awards, including the Banking, Finance and Insurance Award 2020, the Legal Services Award 2020 and the Clerks – Private Sector Award 2010.
Employers who provide their employees with an annualised salary will, from 1 March 2020, need to advise each employee in writing of the annualised wage that is payable and how it has been calculated, the specific provisions of the modern award which will be satisfied by payment of the annualised wage and the outer limit number of ordinary and overtime hours which would attract the payment of a penalty rate under the award.
Another significant change that the Fair Work Commission has introduced is the requirement for employers to keep records of the start, finish and break times of each of its employees who receive an annualised salary. Such records must be signed by the employee each pay period.
If employees in your organisation who are covered under these modern awards receive an annualised salary, you will need to take steps to ensure that your organisation is compliant with the upcoming changes, which come into operation on 1 March 2020.