• GL
Choose your location?
  • Global Global
  • Australia
  • France
  • Germany
  • Ireland
  • Italy
  • Poland
  • Qatar
  • Spain
  • UAE
  • UK

Fair Work Commission Overhauls Annualised Wage Clauses

08 April 2019
The Fair Work Commission recently handed down a decision which will introduce or significantly alter annualised wage clauses in a large number of modern awards, including in mining, banking, horticulture and hospitality. 

What are annualised wage clauses?

Annualised wage clauses allow a full-time employee’s pay to be calculated by reference to a predetermined ‘rolled up’ annual lump sum, as opposed to a combination of a weekly wage, overtime and penalty rates, among other things.


What does this mean for employers?

The clauses will impose stringent safeguards for employees under annualised wage arrangements, including record-keeping and reconciliation requirements.  Once introduced, employers affected by the new clauses will be required to keep records of the hours employees work and calculate the pay an employee would have been entitled to on a standard award basis. Employers will then be required to make good any shortfall, so that an employee is not disadvantaged for receiving an annualised wage.

The clauses are only proposed to apply to full-time employees at this stage.


What happens next?

The proposed standardised clauses are not entirely uniform and have not yet been inserted into the relevant awards, but the FWC has indicated it will do so subject to further submissions and evidence from interested parties about transitional provisions and other items

If your workplacee uses annualised wage arrangements you should seek advice about the steps to take to ensure compliance under the new award provisions.

If you require further information or have any queries in relation to this alert, please feel free to contact Matthew Smith or Sina Zevari.



1 4 yearly review of modern awards – Annualised Wage Arrangements [2019] FWCFB 1289. (https://www.fwc.gov.au/documents/decisionssigned/html/pdf/2019fwcfb1289.pdf)


We would like to acknowledge the contribution of Kate Archibald to this article.

Further Reading

We use cookies to give you the best user experience on our website. Please let us know if you accept our use of cookies.

Manage cookies

Your Privacy

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. We mainly use this information to ensure the site works as you expect it to, and to learn how we can improve the experience in the future. The information does not usually directly identify you, but it can give you a more personalised web experience.
Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change permissions. However, blocking some types of cookies may prevent certain site functionality from working as expected

Functional cookies


These cookies let you use the website and are required for the website to function as expected.

These cookies are required

Tracking cookies

Anonymous cookies that help us understand the performance of our website and how we can improve the website experience for our users. Some of these may be set by third parties we trust, such as Google Analytics.

They may also be used to personalise your experience on our website by remembering your preferences and settings.

Marketing cookies

These cookies are used to improve and personalise your experience with our brands. We may use these cookies to show adverts for our products, or measure the performance of our adverts.