Moving away from awards

Q: We are wanting to move from having award-based employment contracts to non-award-based contracts.

If we amend the current contracts and ‘annualise’ the remuneration, do we have to increase employee salaries when there is an increase in the award, even if they are no longer on it?

A: If you offer a guarantee of annual earnings (that is accepted and if the guaranteed amount is no less than the high earning threshold) then it prevents the modern award from applying. Therefore, you would not have to increase salaries when there is an increase in the award.

Please note: The answer is correct at the time of publishing. Be aware that laws may change over time. Refer to Annualised salaries for current advice.

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