Changes to annualised salary provisions

A new Banking Finance and Insurance Award came into effect on 4 February 2020 and applies to a significant number of employees in insurance broking firms.

There are further changes to the Award that take effect on 1 March 2020 which apply where an employee receives an Annualised Salary and impose detailed record keeping obligations on employers.

NIBA CEO, Dallas Booth said, “NIBA strongly urges all Member Principles to seek urgent advice from their HR/IR consultant or their legal adviser to understand the impact of these new award provisions on their employment contracts and practices.”

In a statement to members he warned that moving forward, there will be extremely important record keeping requirements. Firstly, to be able to consider that everything is ‘built in’ to the salary, it MUST be in writing. The tools being drafted will ensure an employer meets these requirements if used correctly. The current HR resources will also be updated where required, to include the award changes as part of the upcoming updates.

Whilst there will be some work to do initially, this is a good opportunity for employers to update employee records, including employment agreements, to ensure they meet the BFI Award and record keeping requirements for those paid an annualised wage.