Just before the Covid-19 pandemic wreaked havoc on the Australian economy, the Fair Work Commission made new rules for annualised wage arrangements. Despite the pandemic, as an employee who is paid an annualised wage (i.e. a fixed dollar amount, rather than an hourly amount), you must be paid at least the minimum entitlement specified under each applicable Modern Award. If you are not, then it is likely that you are being underpaid!
Yes, we realise that a lot of employers are under pressure and asking their employees to take pay cuts and work less hours, but this all needs to take place within the confines of the law. These changes are part of that law.
These changes took effect from the first full pay period commencing 1 March 2020 and affect the following Modern Awards:
- Banking, Finance and Insurance Award;
- Broadcasting, Recorded Entertainment and Cinemas Award;
- Clerks – Private Sector Award;
- Contract Call Centres Award;
- Hydrocarbons Industry (Upstream) Award;
- Legal Services Award;
- Local Government Industry Award;
- Manufacturing and Associated Industries and Occupations Award;
- Mining Industry Award;
- Oil Refining and Manufacturing Award;
- Pharmacy Industry Award;
- Rail Industry Award;
- Salt Industry Award;
- Telecommunications Services Award;
- Water Industry Award; and
- Wool Storage, Sampling and Testing Award.
If you are a full-time employee who is paid an annualised wage under one of the above Modern Awards, you are affected by the new rules. This means that your annualised wage arrangement cannot be less than what you would be entitled to if you were paid hourly.
Your annualised wage arrangement must compensate for:
- Minimum wages;
- Allowances;
- Overtime and penalty rates; and
- Leave loading.
What you must do next
If you are a full-time employee, covered by one of the above Modern Awards and you are unsure if you are being paid correctly under these new rules (particularly in relation to non-payment of overtime, penalties and allowances), contact JFM Law on (02) 9199 8597 for a no obligation chat. If you would rather get in contact through email, send your question through or by email at wehelp@jfmlaw.com.au. We can assist you to rectify any underpayments promptly.
The information contained in this post is current at the date of editing – 15 April 2024.