Industry Updates

Annualised Wage Arrangements

Clerks – Private Sector Award 2010 and the Manufacturing and Associated Industries and Occupations Award 2010

As part of the 4 Year Review of all modern awards, the Fair Work Commission recently varied both the Clerks - Private Sector Award 2010 (CPS Award) and the Manufacturing and Associated Industries and Occupations Award 2010 (MAIO Award).

Annualised Wage Arrangements

The variations to the CPS Award and the MAIO Award will commence on the first pay period on or after 1 March 2020.

The variations to the CPS Award and the MAIO Award insert new annualised wage arrangement provisions.

A copy of the determination varying the CPS Award can be found here

A copy of the determination varying the MAIO Award can be found here

 

Application – CPS Award

The annualised wage arrangement only applies to a full – time employee.

The annual wage arrangement can be paid in satisfaction of:

  • Clause 16             Minimum weekly wage; and / or
  • Clause 19             Allowances; and / or
  • Clause 27             Overtime; and / or
  • Clause 28             Penalty rates; and / or
  • Clause 29.3          Annual leave loading.

 

Application - MAIO Award

The annualised wage arrangement only applies to a full -time  employee employed as a Supervisor / Trainer / Coordinator Level I or II.

The annual wage arrangement can be paid in satisfaction of:

  • Clause 24             Classification and adult minimum wages; and / or
  • Clause 32             Allowances and special rates; and / or
  • Clause 34             Payment of wages; and / or
  • Clause 37             Special provisions for shiftworkers; and / or
  • Clause 40             Overtime; and / or 
  • Clause 41.5          Annual leave loading.

 

Annual wage arrangement not to disadvantage employees

If an employer and an employee enter into an annual wage arrangement, the employer must advise the employee in writing and keep a record of:-

  • the annualised wage that is payable;
  • which provision (or provisions) of the CPS Award or the MAIO Award are satisfied by the payment of the annual wage arrangement;
  • the method by which the annualised wage has been calculated (including specification of each separate component of the annual wage arrangement);
  • when penalties or overtime would be payable outside of the annual wage arrangement.

The annualised wage arrangement must be no less than the amount the employee would have received under the CPS Award or the MAIO Award for the work performed over the year for which the wage is paid (or if the employment ceases over such lesser period as has been worked).

 

Employee Records

The employer must undertake a reconciliation of the annual wage arrangement as compared to the CPS Award or MAIO Award each twelve (12) months to ensure that the annual wage arrangement did not disadvantage the employee concerned.

The employer must keep a record of the starting and finishing times of work, and any unpaid breaks taken of each employee who is a party to an annual wage arrangement.  This record must be signed by the employee or acknowledged as correct in writing (including by electronic means) by the employee, each pay period.

If you have any questions please contact Phil Eberhard, Senior Workplace Relations Adviser, Master Plumbers, on 03 9321 0720, 0425 790 722 or [email protected].

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