Preparing for the 2025 Award Rate Changes – Is Your Organisation Compliant?
https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2024-2025
“Compliance isn’t a checkbox, it’s a commitment. When Award obligations are overlooked, the risks to organisations are immediate and avoidable.”
For organisations that engage employees under levelled or annualised salary arrangements, now is the time to conduct a comprehensive salary audit.
It is essential to ensure that each employee is receiving, in practice, no less than they would be entitled to under the applicable Modern Award. This includes a proper reconciliation of Award-based entitlements such as overtime, penalty rates, allowances, and mandatory rest periods between shifts. The Fair Work Commission has reinforced that annualised salary arrangements must not result in employees being disadvantaged, and that employers must be able to demonstrate that the total annual remuneration equals or exceeds what would have been paid under strict Award compliance.
This assessment requires a detailed review of actual hours worked, entitlements accrued, and any variances in working patterns. It should be conducted at least annually, or whenever there are material changes to Award conditions or business operations. Maintaining accurate records is not just good practice, it is a compliance requirement that helps mitigate the risk of underpayment claims or regulatory scrutiny.
If your organisation needs support navigating these changes, The BelRose Group is here to assist. We provide expert guidance on Award compliance, payroll auditing, and the review of annualised salary arrangements. Our practical, tailored approach ensures your systems are compliant and fit for purpose.
For trusted advice and hands-on support, connect with our team today.