Annualised Salary Agreement Changes

At Integrated HR, we are always aiming to ensure we are providing the best and most proactive service possible. This includes keeping our client’s and network updated with award changes that may affect you and your business.

As of March 1st, 2020, the Fair Work Commission introduced changes to the terms of 18 modern Awards meaning that there will be new obligations on employers paying annual salaries under these provisions:

  • Banking, Finance and Insurance Award
  • Broadcasting Award
  • Clerks Award
  • Contract Call Centres Award
  • Hydrocarbons Industry (Upstream) Award
  • Legal Award
  • Local Government Award
  • Manufacturing Award
  • Mining Award
  • Oil Refining and Manufacturing Award
  • Pharmacy Award
  • Rail Award
  • Salt Award
  • Telecommunications Award
  • Water Award
  • Wool Award
  • Horticulture Award
  • Pastoral Award 

The new rules effect full time employees who are paid an annual wage under one of the above awards. Part time and casual employees can’t have annual wage agreements under these awards.

The Fair Work Commission also plans to update the following awards with new rules, but is yet to set a timeframe:

  • Health Services Award
  • Hospitality Award
  • Marine Towage Award
  • Restaurant Award


The changes will require employers to:

  1. Have written documentation that records which provisions of the award are intended to be included within the annual salary.
  1. Specify in the documentation the ‘outer limits’ or maximum number of overtime or penalty hours that are included within the annual salary in each pay period.
  1. When an employee works hours that exceed those outer limits in a pay period, pay the employee for those hours worked within the relevant pay cycle.
  1. Keep record of the start times, finish times and unpaid break times for each employee paid an annual salary. Employees must sign or acknowledge these recorded hours as accurate every pay cycle.
  1. Perform an annual reconciliation calculated from the commencement of the annualised salary arrangement or upon the termination of the employee. This will involve calculating the amount the employee would have been paid if they were paid on an hourly basis in accordance with the award. If there is any shortfall it must be paid within 14 days.

If you have any questions or wish to discuss in more detail please do not hesitate to contact us (07) 5613 1846 / info@humanresourcing.com.au