News

Salaried provisions introduced into the HPSS Award

Published 25 May 2020

 

 

On 9 May 2022, a new annual wage arrangement was made under the Health Professionals and Support Services Award 2020 (HPSS). Clause 22.1, Annualised wage instead of award provisions, of the HPSS Award outlines the provisions an employer must follow if they wish to pay their employee an annualised salary.

 

The update for the HPSS Award applies to full-time employees only. The award now allows for full-time employees to agree to be paid an annual wage instead of a weekly or hourly pay rate if they’re classified as:

  • Support Services level 8 or 9; and
  • Health Professions levels 2 to 4. 

This will likely be applicable to your practice managers as they are often classified as Level 8 or 9. 

An annual wage under the HPSS Award can compensate an employee for their award minimum: 

  • Wages
  • Allowances
  • Overtime, penalty and shift rates for a limited number of hours 
  • Leave loading

Employers and employees can end an annual wage arrangement: 

  • At any time, by agreeing in writing that the arrangement is ending
  • By giving the party 12 months written notice that the arrangement is ending 

The annual wage agreement needs to be in writing and a copy of the arrangement must be given to the employee. The agreement must explain the following:

  • The annual wage to be paid
  • Which award entitlements are included in the annual wage
  • How the annual wage has been calculated, including any assumptions used in the calculation
  • The maximum penalty hours and overtime hours the employee can work in a pay period or roster cycle without extra payment.

Record keeping should be of utmost important for all employees, especially those on an annualised salary. You should ensure you are recording the employee’s start and finish times, as well as any unpaid breaks. These records of hours should be signed, either in person or electronically, at the end of every pay period or roster cycle as this information will be used for annual reconciliation. 

The employee’s annual wages will now need to be reconciled every 12 months after the arrangement starts or when the arrangement or employment ends. 

The Workplace Relations Team are working on amending our full-time HPSS Award contract template to accommodate for annualised salaried employees.

 Workplace Relations Support are working on amending our full-time HPSS Award contract template to accommodate for annualised salaried employees. 

Workplace Relations Toolkit members will receive email updates with new templates the WR team creates and updates throughout the year. 

Workplace Relations Consultancy can review contracts you have already put together and offer guidance to what the most relevant changes would need to be made to accommodate for an employee with an annualised salary.  


You can contact us via phone (07) 3872 2222 and email support workplacerelations@amaq.com.au