Fair Work, Industry News

New Fair Work rules affect Salaried Employees

By Paolo, 01.02.2020

Fair Work Rules to Affect Salaried Employees

Starting from 1 March 2020, the Fair Work Commission is introducing new rules that will mandate employers to keep track of salaried employees’ hours of work and unpaid breaks. Businesses are required to conduct an annual pay reconciliation to ensure workers are not underpaid and advise them of the maximum hours they can work without attracting overtime or penalty rates.

Employers now are required correctly classify their employees’ Award and assess whether or not, the yearly salary offered in their employment agreement is above the pay rates set out in the applicable Award. They also have to carefully budget the salary on offer and the average hours per week they expect the employee to work at the time of engaging a new employee, or they may be caught committing wage theft. Finally, they are required to periodically review their salary packages, every time Fair Work pay rates change.

We are currently developing a “Wage Test” tool designed to assess the employee Yearly Salary and compare it to the Pay Rates established by the applicable Award. The tool can be used either as a guide to complete your yearly Payroll Wage reconciliation or to assess the salary on offer for a new Employment Agreement.

We are also in the process of partnering up with new HR Software and Advisory Associations to support your business, once these new regulations start.

If you would like to receive more information about our new HR Software (Employment Hero) or Wage Test Tool, contact Paolo directly at: [email protected]


This blog and attached resources are of general nature designed for informational and educational purposes only. They should not be construed as professional financial advice for your individual business. Should you need such advice, consult a licensed financial or tax advisor.

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