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Salaried Employment Agreement: Key Changes You Need to Know

Updated

This article provides a comprehensive overview of the introduction of the Salaried Employment Agreement as an enhancement update to our pre-built Awards, not a legislative requirement.

This change will help you better manage your Salaried employees who are under Individual Flexibility Arrangements (IFAs) within the Award, instead of taking them out of the Award structure.

If you have any customised rules within the award, it is important to note:

  1. Customised rules will not automatically update when you apply award updates to your system.
  2. Review and understand any changes made to the award rules.
  3. Verify that your customised rules are not affected by these changes. If the changes do impact your customised rules, you will need to update them manually.

To edit or add customised rules, award rules must first be unlocked. For step-by-step instructions, please refer to this article.

Special Note

If you intend to use the Automate Public Holiday Not Worked feature for auto-paid employees, this Salaried Employment Agreement enhancement is incompatible.

You must not use a Salaried Employment Agreement, Rule Set or Pay Rate Template for those employees due to the Public Holiday Not Worked automation feature restrictions. For more details, please refer to this article.

What's new

Below is a summary of the additional items we created for the Salaried Employment Agreement, which did not previously exist in the Award.

New Pay Categories

  • "Salary" pay category is set up with the Annual unit.
  • "Salary - Public Holiday Not Worked" is a linked pay category that is set up with the Hourly unit.
    new pay categories

New Leave Allowance Templates

New Leave Allowance Templates for all states within loading or without loading.

New Rule Set

  • "Salaried" rule set includes one rule to disregard all submitted timesheets.

New Pay Rate Template

  • "Salaried" pay rate template for both Permanent and Casual employees.

New Employment Agreements

  • "Salaried - Full Time" employment agreement for Full time employees.
  • "Salaried - Part Time" employment agreement for Part time employees.
  • "Salaried - Casual" employment agreement for Casual employees.

Actions Needed after Award update and Platform Syncs (if you also use the HR platform)

  • Review employee profiles: For any employees you previously removed from an Award to set a salary, you can now link them to the new Salaried Employment Agreement and input their annual rate in your data source, which is the HR platform (if you use both HR and Payroll) or the Payroll platform (if you only use Payroll).

  • Timesheets for salaried employees: While most salaried employees don't use timesheets for their regular pay, some may still be required to submit them even though they are paid a default wage.

    • You can adjust their 'Pay Run Defaults' > 'Timesheets' setting to 'Use timesheets for exceptions only' to ensure they can create timesheets in the employee portal.
    • This setting, in conjunction with the "Salaried" rule set, which disregards timesheets as aforementioned, ensures that submitted hours do not affect the employee's default wage during the pay run.
  • Manage custom rules: If you had any special, customised pay rules for these employees, you will need to manually re-add those rules to the new Salaried Rule Set in the Payroll platform.
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