How to Navigate the Top 5 Common Employee Share Option Plan Implementation Challenges

13 Sep 2021

Employers with staff on annual salaries covered by industry awards will need to clock employee hours to fulfil new requirements finalised by the Fair Work Ombudsman as a part of their four-yearly review of modern awards.

The affected industries include:

  • Banking;
  • Broadcasting and
  • Recorded Entertainment;
  • Clerks;
  • Contract Call Centres;
  • Finance and Insurance;
  • Health Professionals;
  • Hydrocarbons Industry (Upstream);
  • Horticulture;
  • Hospitality;
  • Legal services;
  • Marine Towage;
  • Local government;
  • Manufacturing;
  • Mining;
  • Oil Refining;
  • Pastoral;
  • Pharmacies;
  • Rail;
  • Restaurants;
  • Salt;
  • Telecommunications;
  • Water; and
  • Wool.

Under the new clauses, employers who elect to pay an annual salary that is inclusive of overtime, penalty rates, allowances and loadings will need to:

  • Detail to the employee how the annual salary payable to them is calculated in respect to the award and how the annualised amount satisfies the award including any overtime or penalty assumptions;
  • Specify the outer limit of ordinary hours that would attract a penalty rate an employee may be required to work each pay period or roster cycle;
  • Set out the out limit of overtime hours an employee may be required to work each pay period or roster cycle;
  • Pay employee for excess hours worked at the award rates;
  • Conduct a reconciliation of hours worked every 12 months (and on termination of employment) to compare the annual salaries paid to the amount which would have been earned under the relevant modern award;
  • Pay the shortfall amount to the employee within 14 days of the annual reconciliation; and
  • Keep a record of each employee’s start and finish times and any unpaid breaks.

BoardRoom offers multiple time clocking solutions and an award interpretation engine to assist in facilitating these new requirements. We work with our clients to govern payroll compliance and stay well-informed of changing legislation. Our Australian payroll professionals can assist with all facets of payroll management, including compliance requirements.

Contact George Lygoyris, our Chief Commercial Officer on to see how we can assist you with meeting these new obligations.
Book a free demo of our payroll platform, Definitiv.

Contact BoardRoom for more information:

Tom Bloomfield

General Manager, Growth & Partnerships
+61 2 9290 9617