The Clerks Award provides an annual salary option for full-time and part-time employees.
What can be included in the annual salary?
The Clerks Award allows you to pay an employee an annual salary to satisfy specific award provisions including minimum weekly wages, allowances, overtime and penalty rates and annual leave loading. The annual salary that is paid must not be any less than the amount the employee would have received if wages, allowances, overtime and penalty rates and annual leave loading had been paid separately, and must be reviewed at least once a year to make sure that all of the award entitlements are covered.
Where there is an annual salary arrangement, you must advise the employee in writing specifying the annual salary to be paid and the award provisions that are satisfied by the payment of the annual salary. You can use the annualised salary agreement template (available below) for this purpose.
Example
Jackson is employed on a part-time basis as an administration officer and is offered a salary of $29,500 plus superannuation for working 20 hours per week. In his letter of offer, which he agrees to, his employer states that this salary covers his minimum wage, annual leave loading and overtime rates for the additional hours he works from time to time. Jackson’s employer advises him that his salary will be reviewed every year to make sure that all of his entitlements under the Clerks Award are covered.