DETERMINATION

Fair Work Act 2009
s.157 - FWC may vary etc. modern awards if necessary to achieve modern awards objective

South East Water Corporation
(AM2013/26)

WATER INDUSTRY AWARD 2010
(ODN AM2008/92)  [MA000113]

Annualised salary clause.

A. Further to the Full Bench decision of 9 December 2014 1 and pursuant to s.157 of the Fair Work Act 2009, the Water Industry Award 20102 (the Award) is varied as follows:

1. By inserting the number “14.1” with the heading “Adult employees” at clause 14, directly below the heading “Minimum wages” and preceding the paragraph beginning with the words “A full-time adult employee....”; and

2. By inserting the following clause at clause 14 of the Award immediately following the table of minimum weekly wages at the end of clause 14.1—Adult employees:

“14.2 Annualised salaries

The following provisions are to apply to employees employed in classification Levels 9 and 10 in accordance with Schedule B of this award.

14.2.1 Annual salary instead of award provisions

(a) An employer may pay an employee an annual salary in satisfaction of any or all of the following provisions of this award:

(i) clause 14—Minimum wages;

(ii) clause 19—Allowances;

(iii) clauses 25.5 and 26—Shiftwork penalty rates and Overtime;

(iv) clause 27.3- Annual leave loading.

(b) Where an annual salary is paid the employer must provide written advice to the employee of the following:

(i) the annual salary that is payable and which of the provisions of this award will be satisfied by payment of the annual salary;

(ii) the date on which the salary arrangement commences;

(iii) the award level classification for the role; and

(iv) the terms of clause 14.2.2 of this award.

14.2.2 Annual salary not to disadvantage employees

(a) The annual salary must be no less than the amount the employee would have received under this award for the work performed over the year for which the salary is paid (or if the employment ceases earlier over such lesser period as has been worked).

(b) The annual salary of the employee must be reviewed by the employer at least annually to ensure that the compensation is appropriate having regard to the award provisions which are satisfied by the payment of the annual salary.

14.2.3 Base rate of pay for employees on annual salary arrangements

For the purposes of the NES, the base rate of pay of an employee receiving an annual salary under this clause comprises the portion of the annual salary equivalent to the relevant rate of pay in clause 14—Minimum wages and excludes any incentive-based payments, bonuses, loadings, monetary allowances, overtime and penalties.”

B. This determination comes into operation on 16 January 2015.

SENIOR DEPUTY PRESIDENT

 1   [2014] FWCFB 5195.

 2   MA000113.

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