Annualised Salaries – Are you Compliant?
Woolworths, Super Retail Group, Rockpool Dining, 7-Eleven and ABC. What do they all have in common you ask? Underpayment of its employees. And we are talking millions of dollars in underpayments.
What does this mean for you though?
From the 1st of March 2021 employers face harsh penalties for failing to comply with annualised wage agreements across 18 different awards including but not limited to:
- Banking, Finance and Insurance Award 2020
- Broadcasting Award 2020
- Clerks Private Sector Award 2020
- Contract Call Centres Award 2020
- Legal Award 2020
- Manufacturing Award 2020
- Mining Award 2020
- Oil Refining and Manufacturing Award 2020
- Rail Award 2020
- Telecommunications Award 2020
What’s Changed?
As an employer, you are now obligated to undertake an annual calibration of all employees that are covered by an annualised salary. Primarily to ensure that you remain legally compliant and that you are paying your employees above the minimum rate prescribed by the relevant Award.
Effectively an employer needs to reconcile their organisations annualised salaries with their actual hours worked to substantiate whether or not they have underpaid their employees.
What Do I Need to Do?
Employers with annualised salary arrangements need to keep detailed records of time and attendance and all payments made to provide an annual figure in comparison to the respective Award. Failure to do so will lead to underpayment issues and potential fines from the Fair Work Commission for non-compliance.
Additionally, employers should update their employment agreements for annualised salary arrangements.
The team at wattsnext are happy to assist you to review your current annualised salary arrangements to ensure that you remain legally compliant and that there is minimal risk to your organisation.
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