An employer which offers employees contracts with annualised salaries to compensate for all entitlements to which they are entitled under an applicable award needs to beware.

The applicable award may provide that an employer must state in writing which provisions of the award will be satisfied by the payment of the annualised salary.

If the employment contract does not state what entitlements are covered, an employer may find itself facing a claim for overtime, allowances, penalty rates or annual leave loading.

Nevett Ford can assist in avoiding this problem by conducting “health checks” of employee contracts for award covered employees.