Have you made the changes required, to reflect the new arrangements for modern award- based, salary employees? These changes will apply from 1 March 2020 and don’t have a grace period. If your business employs salaried staff through any of the listed awards below, you need to be prepared for these upcoming changes:

Modern awards to be impacted by this decision:

  • Banking, Finance and Insurance Award 2010
  • Broadcasting and Recorded Entertainment Award 2010
  • Clerks – Private Sector Award 2010
  • Contract Call Centres Award 2010
  • Health Professionals and Support Services Award 2010
  • Horticulture Award 2010
  • Hospitality Industry General Award
  • Hydrocarbons Industry (Upstream) Award 2010
  • Legal Services Award 2010
  • Local Government Industry Award 2010
  • Manufacturing and Associated Industries and Occupations Award 2010
  • Marine Towage Award 2010
  • Mining Industry Award 2010
  • Oil Refining and Manufacturing Award 2010
  • Pastoral Award 2010
  • Pharmacy Industry Award 2010
  • Rail Industry Award 2010
  • Restaurant Industry Award 2010
  • Salt Industry Award 2010
  • Telecommunications Services Award 2010
  • Water Industry Award 2010
  • Wool Storage, Sampling and Testing Award 2010

Have you:

  • Put in place a process to document an annual calculation of the entitlements the salaried employee would have received, should they have been emlployed as an hourly rate employee?
  • Requiring employers to complete a documented annual calculation of the entitlements the salaried employee would have received, should they have been employed on an hourly rate.
  • Considered a way to reconcile and pay any shortfall within 14 days of this comparison being made?
  • Implemented a timesheet record system for salaried employees?
  • Documented an ‘outer limit’ of hours the employee could possibly work under the terms of the salary? i.e. 10 hours overtime per week, or 12 hours on a weekend shift, for example.
  • Updated contracts to reflect that annualised wage arrangements (salary agreements), where entered into by agreement, should be terminable at any time by agreement or terminated on 12 months’ notice?

Although it’s quite possible that the pay rates for your salaried employees won’t change (you should check this though), your systems and processed now need important updates to stay on top of your record-keeping obligations.  Salaried employees may not appreciate the new requirement to complete a daily timesheet, however, it’s important for your team to remember that these obligations are important and non-negotiable.

If you’re not sure how to best implement these changes in your business, let us know. Our Workplace Partners are here to help.


*This is general information only and doesn’t take your specific business circumstances into account.