The proposal is aimed at addressing the ongoing issue of employers paying 'middle managerial' employee salaries without keeping records of their time and attendance. This lack of record-keeping poses increasing risks for businesses, especially with fines increasing to $469,500 per breach or $4,695,000 for "serious contraventions" regarding overtime records.

The variation would allow employers to optionally pay employees a flat rate of 155% of the award rate for a full-time workload, covering all award entitlements (such as loadings, penalties, and allowances) to cover up to 50 hours of work weekly. About 28% of clerical employees are already remunerated at this rate or above.

 

The proposal's benefits include:

  • The arrangement is optional for both employees and employers.
  • A single weekly rate of pay applies to cover up to 50 hours of work, allowing the employee to work between 38 and 50 hours a week without any additional payments.
  • Beyond the threshold, the proposal applies a simple single rate of pay for all additional hours, regardless of when they fall.
  • Employees receive the benefit of higher rates for personal and annual leave, plus superannuation payments.
  • It simplifies record-keeping, reducing obligations for employers under Regulation 3.34 of Fair Work Regulations 2009, thereby avoiding the risk of substantial penalties for non-compliance. 

The proposal has been submitted to the Fair Work Commission's Modern Awards Review 2023-24. 

Australian Business Industrial (ABI) is the industrial relations affiliate of Business NSW.

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