Are you prepared for the new annualised salary award provisions?

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As part of the Fair Work Commission’s “four-yearly review of modern awards”, as of the 1st of March 2020, new annualised salary clauses will be included in a number of the current modern awards. There are important changes, and these must be carefully reviewed in order to maintain compliance.

There are new clauses that will replace existing ones that already appear in many modern awards, and new clauses inserted into awards that previously did not cover annualised hours. These clauses effectively alter the existing award terms significantly. The new terms are prescriptive rather than selective and include specific requirements that must be adhered to.

These new clauses include stated requirements around notifications, wage reconciliation, validation and record-keeping for employers, where employees are covered by the affected awards and where these arrangements are utilised.

The full list of affected awards can be found in the following Fair Work documents [2019] FWCFB 1289 and [2019] FWCFB 4368 and include common awards like the Hospitality Award 2010, the Clerks Private Sector Award 2010 and the Manufacturing and Associated Industries and Occupations Award 2010.

How to prepare for these changes:

Our experience shows that when these changes are implemented properly ahead of time, companies can accommodate the new requirements quickly and easily. There may be some minor configuration changes, or you may wish to undertake a more comprehensive review of your awards, clauses and their implementation in your business.

You may also consider how to accommodate the reporting, recording and validation requirements with your current arrangements.

Tambla can assist you. Our Consulting Services Team is here to help with BOOT testing and pay comparison reporting, and are also capable of implementing the new clauses into your existing award configuration. Our Analytics Team can provide insight and help with modelling the right salary/wage based on historical patterns of work to ensure that your employees are always paid more than the award, without excessive over payment.

If you already have a solution and have concerns that results may be incorrect, innacurate or you just don’t have visibility of a direct comparison of salary vs award results – our Tambla PayCE solution can provide Payroll Comparison and BOOT testing and help ensure you stay compliant.

To find out more, give us a call on: 02 9122 6200, email us at marketing@tambla.com.au or talk to your Consultant, Account Manager or our Service Desk team.

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