2020 – Annualised Salary Chaos

By February 6, 2020 May 7th, 2021 No Comments

If 2019 will be remembered for wage scandals 2020 will most likely be remembered for the annualised salary changes to Modern Awards (See List).

The 1st March 2020 changes mean that employers with employees on a salary will need to ensure that the annualised salary meets the remuneration obligations under the relevant award.

We can all look forward to a more complicated payroll, the need for employee time capture and an increased focus on award compliance.

As an example, very few employers have staff that are not covered by the Clerks Award. The net is being widely cast.

Existing and new employees may need to be provided with details (via an agreement or arrangement) of how the employer has calculated the annualised wage, including any penalty rates and overtime. The agreement also needs to set out the ordinary hours an employee is required to work before penalty rates apply and the overtime hours an employee is required to work before being entitled to an excess payment on top of the annualised salary.

Employers will need to maintain records of their employee’s hours of work; specifically start, finish and break (paid and unpaid) times. Employees need to acknowledge accuracy of the recordings.

Employers are also required to undertake an annual review for every employee. This review needs to reconcile the employee’s hours for the preceding 12 months. Employees must be better off under the annualised salary, compared with benefits paid under the relevant Modern Award. Any shortfalls are required to be remedied within 14 days. A failure to comply could result in penalties of up to $63,000 per breach.

foundU Customers have all the tools to provide the necessary details and capture an employee’s acknowledgement of hours worked. Our Product Development team has commenced work on processes within the foundU Platform to automate many of these requirements.

Feel free to contact the foundU Team to discuss how a foundU Platform can help your business or go to to explore our truly end-to-end HRIS and Payroll Platform.

Our fully configurable Learning Management System is also ready for launch!!