If you pay your employees an Annual Salary rather than an hourly rate it is important that you ensure the salary meets the requirements of the relevant award.
The salary must sufficiently cover and include:
- Minimum wages
- Overtime and penalty rates
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Recently IBM back paid 1,647 employees over $12million as they failed to apply the above requirements to employees that appeared to be being paid above award wages.
In addition, in February 2020 Fair Work introduced new rules for annualised salaries, the below rules are slowly being rolled out across all awards.
- Salary to be paid
- Relevant award information
- Award entitlements
- Calculations and assumptions
- Maximum penalty hours allowable within salary (outer limit)
- Start and finish times
- Unpaid breaks
If an employee works more than the ‘outer limit’ of penalty hours they must be paid above their salary for these hours.
Reconciliations are to occur 12 months after the arrangement starts or when employment / arrangements end.
If you are unsure if your business is required to comply with these rules, please call us now for an obligation free conversation.
As Human Resources Consultants we know that award requirements are both complex and constantly changing.
We can review your current salaries and ensure that you are meeting your obligations under your award/s.
Integrated Human Resourcing is an outsourced HR firm based in Burleigh Heads, Gold Coast.
If you would like to know more, call us 5613 1846 / email@example.com