Change in Annual Salary Agreements

by Adrian ClarkOct 9, 2021Human Resources, View All

Workplace investigations are a vital part of maintaining the integrity and fairness of any organisation. When issues arise, it’s important for businesses to act quickly, ensuring that they address concerns in a transparent and lawful manner. Different types of investigations are needed for different situations, each requiring a tailored approach to ensure fair outcomes for all involved. Below are some of the most common types of workplace investigations and when they should be used.

Misconduct Investigations
Misconduct investigations are necessary when an employee breaches company policies or behaves inappropriately. This might include theft, dishonesty, substance abuse in the workplace, or breaches of confidentiality. Misconduct can also cover actions that damage the company’s reputation or relationships with clients. It’s important to act quickly when dealing with misconduct to maintain workplace standards and protect the business from potential legal liabilities.

Harassment and Bullying Investigations
Investigations into harassment and bullying are crucial when employees report or experience inappropriate behaviour. Whether the issue is sexual harassment, racial harassment, or bullying, businesses have a duty to investigate and take action. These investigations must be handled with care, ensuring that both the complainant and the accused are treated fairly, and that the process remains confidential. Addressing such issues promptly not only protects employee wellbeing but also helps to maintain a respectful workplace culture.

Discrimination Investigations
Discrimination investigations come into play when employees feel they’ve been treated unfairly due to attributes such as race, gender, age, disability, or sexual orientation. These cases can be complex and require careful handling to ensure compliance with anti-discrimination laws in Australia. A thorough investigation is essential to ensure that all claims are properly examined, protecting the organisation from legal action and fostering an inclusive workplace.

Health and Safety Investigations
When a workplace incident or a near-miss occurs, a health and safety investigation is needed. These investigations help to determine whether existing safety measures were followed and if further action is required to prevent future incidents. Compliance with workplace health and safety laws is essential in Australia, and these investigations ensure that businesses fulfil their obligations to protect their employees.

Workplace Culture Investigations
In some cases, broader concerns about workplace culture may require investigation. This can occur when there are ongoing issues affecting morale, such as repeated complaints about management or widespread dissatisfaction among staff. A culture investigation looks at systemic issues within the workplace and seeks to identify patterns that may be harming the work environment. These investigations provide valuable insights for leadership teams to implement lasting positive change.

How AHR Can Assist with Workplace Investigations
Conducting a workplace investigation requires impartiality, expertise, and a thorough understanding of Australian workplace laws. At Assurance HR (AHR), we specialise in handling workplace investigations with a high degree of professionalism and confidentiality. Whether you’re facing allegations of misconduct, bullying, discrimination, or safety breaches, AHR has the expertise to guide your organisation through the investigation process.

Our team works with you to ensure that every step of the investigation is conducted lawfully and fairly. We help gather evidence, interview witnesses, and provide detailed reports on our findings, making sure you have all the information needed to resolve the issue. By choosing AHR, you can focus on your business while we take care of the complexities involved in workplace investigations, ensuring you remain compliant and maintain a positive work environment. Let AHR be your trusted partner in managing workplace investigations with confidence and care.

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Do you employ staff on annual salaries? If yes, important legislation is now in place that affects you. Make sure you’re covered. Read on to find out what you need to do.

The Fair Work Commission handed down a decision last year to protect the rights of workers paid on an annual salary, specifically in the areas of overtime hours. Many businesses employ full-time staff on an annual salary, and in many cases, these employees work overtime as needed without further compensation. This new law ensures employees are not underpaid or otherwise disadvantaged by the annual salary contract.

This decision affects full-time employees on an annual salary arrangement and covered under the following awards:

Category 1

Banking, Finance and Insurance Award 2010
Clerks – Private Sector Award 2010
Contract Call Centres Award 2010
Hydrocarbons Industry (Upstream) Award 2010
Legal Services Award 2010
Mining Industry Award 2010
Oil Refining and Manufacturing Award 2010 (clerical employees only)
Salt Industry Award 2010
Telecommunications Services Award 2010
Water Industry Award 2010
Wool Storage, Sampling and Testing Award 2010

Category 2

Broadcasting and Recorded Entertainment Award 2010
Local Government Industry Award 2010
Manufacturing and Associated Industries and Occupations Award 2010
Oil Refining and Manufacturing Award 2010 (non-clerical employees)
Pharmacy Industry Award 2010
Rail Industry Award 2010
Horticulture Award
Pastoral Award 2010
Health Professionals Award 2010

Category 3

Marine Towage Award 2010
Restaurant Industry Award 2010
Hospitality Industry (General) Award 2010

If you employ full-time staff on an annual salary your business will be now required to do the following:

Inform the employee in writing on the specific provisions (overtime, allowances, etc) included in their annual salary.
Calculate the employee’s annual salary and notify employees in writing how the calculation was performed.
Specify in writing the maximum of ordinary hours which would attract a penalty payment and any overtime hours not included in the annual salary.
For each pay cycle, record the employee start times, unpaid breaks and have the employee to sign or acknowledge as accurate.
Each year, or at the end of employment, check that each employee hasn’t been underpaid by doing a reconciliation (compare the annualised salary the employee received with the actual hours worked) and pay any shortfall within 14 days.

A written agreement will be required to enter an annualised salary arrangement, except for employees covered under the awards of Category 1. This affects every contract signed since March 1^st.

What you need to do now:

Businesses should check the correct award and classification for each full-time annual salaried employee.
For employees covered by category 2 and 3 awards, employers should ensure an agreement is put in place to confirm the arrangement. If you have a current contract in place, ensure that a well-drafted set-off is included.
Calculate the employee’s annual salary including all penalties, overtime rate etc. and ensure the employee is not underpaid.
Update your record-keeping systems to ensure all full-time employees’ hours are recorded accurately. You could use paper or online timesheets to do that, or even an online app such as ‘Record my Hours’ created by the Fair Work Ombudsman.
Ensure an alert is in place to reconcile the employees’ pay every year and pay any shortfall if you find any.

This is a significant change, and will generate a large amount of work for some businesses. If you need help with any areas listed here, or if you need any advice on how to handle things going forward, email us back, or call our advice line on 1800 577 525.