News Articles
Health Industry
22 August 2022
In May, a significant change was made to the Health Professionals and Support Services Award 2020, administered by the Fair Work Commission.
The changes came into effect on 9 May 2022 and the onus is now on employers to review the pay practices of full-time health professionals or support service staff who are paid annualised salaries and are not covered by enterprise agreements. This review must also include checking timekeeping records and employment contracts.
The Fair Work Commission has new, stringent conditions for annualised wages for a broader range of classifications in the Health Professionals and Support Services Award 2020.
Danny Haydon, Chairman/Principal, Health Division, Brentnalls SA, said, “The changes to the Health Professionals and Support Services Award 2020 have been enacted to ensure that employees are not disadvantaged by annualised salary arrangements.”
The Fair Work Ombudsman1
has provided an overview of the changes included in the Health Services Award. For starters, full-time employees can agree to be paid an annual wage instead of a weekly or hourly pay rate if they’re classified as:
An annual wage under the Health Services Award can compensate an employee for their award minimum:
Employees and employers can end an annual wage arrangement:
The Fair Work
Commission has
new, stringent
conditions for
annualised wages
for a broader range
of classifications
in the Health Professionals and Support Services
Award 2020.
The annual wage arrangement needs to be in writing and explain:
Employers must give their employees a copy of the arrangement.
The employer needs to record the employees:
Employees then sign the record of hours, either in person or electronically, at the end of every pay period or roster cycle. This record is used for annual reconciliations.
An annual wage doesn't mean an employee isn’t paid overtime or penalty rates. If an employee works for more than their agreed maximum (or ‘outer limit’) overtime or penalty hours in a pay period or roster cycle, they need to be paid for the extra hours at the overtime or penalty rate in the award.
Employers must undertake a reconciliation of the employees annual wages:
If the amount actually paid to the employee is less than the award payments that they would have been paid under the award, their employer must pay them the difference within 14 days.
The changes started from the first pay period on or after 9 May 2022, which means the clock is ticking for all employers to get compliant. Failure to properly engage with these requirements for affected employees will be a breach of the Award and may therefore be subject to pecuniary penalties.
To comply with the changes to the Award, employers must:
Employers paying “salaries” to full-time employees should seek expert assistance from their HR advisor to determine whether their arrangements are compliant.
As these amendments to the Award have already commenced, employers must act now if they feel they need help navigating the impact on individual employment contracts, payroll processes, timekeeping, and records.
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Disclaimer
The information provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.
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