Paying a higher flat rate to cover all award entitlements may seem like an easy solution, but you still need to reconcile what an employee’s paid against the hours they’ve worked.
So even if you’re paying above award, you still need to keep track of the hours employees are actually working to make sure the higher rate covers other award entitlements like overtime and penalty rates, shift loadings and allowances.
An annual salary can’t be less than the minimum entitlements an employee is entitled to under an applicable award or agreement and the National Employment Standards. Awards can have additional terms about annual wage arrangements, including recording employees’ hours of work and how often their annual salary should be checked against minimum entitlements in the award.
Employers should consider getting independent advice to make sure they’re paying their employees enough.
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