This letter is to be used by employers when offering a guarantee of annual earnings to their employee. Under the Fair Work Act 2009, a “guarantee of annual earnings” is a written undertaking by the employer to pay the employee an amount of earnings above the high income threshold. The high income threshold is generally adjusted 1 July each year and is currently $175,000.
As part of the requirements of a guarantee of annual earnings, the employer must advise the employee in writing that during the period the guarantee is in place, no modern award will apply to the employee’s employment so long as the annual earnings exceeds the high income threshold. Members are encouraged to contact the Workplace Advice Line on 1300 55 66 77 for assistance on what is included as earnings.
Please note: An employee covered by an Enterprise Agreement cannot enter a guarantee of annual earnings.
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