Employment Contract - What Does This Paragraph Mean?

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  Meho2026 on 01/04/2019 - 21:21

  +8

  The award sets out your minimum pay.
  You are going to be paid outside the award that should result in you being paid more than if you were paid under the award.
  However if a situation arises where your pay ends up being less than what the award would have paid, you will be topped up to that level.

  • 

    Hardlyworkin on 01/04/2019 - 21:52

    What they say!

    • 

      Meho2026 on 02/04/2019 - 01:26

      An employer can pay you more than the award but never less.
      The award is the minimum pay.
      This employer is calculating the pay in a different way than the ward sets out.
      It should always end up the same as the award or more than the award.
      If for some reason the way the pay is calculated it ends up being less than what the award would have paid, then they will top up the pay so it equals the award.

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  Quantumcat on 02/04/2019 - 06:48

  What about the penalty rates mentioned above? The first paragraph seems to say OP gets extra for working overtime and the second seems to say he doesn't unless it means he ends up with less money than he'd get on the award wage.

  • 

    BreakerPlus on 02/04/2019 - 07:15

    +1

    This is what I found confusing. It is a 38 hour week, mon-fri only. There is limited overtime that occurs and checking with someone else on the same contract and wording, any overtime done is paid at 1.5 times on their overaward rate up to the first 3 hrs and double time after that.

    • 

      Meho2026 on 02/04/2019 - 15:24

      +1

      It is most likely that your employer uses this standardised contract for all workers.
      There could be employees that are covered by different awards that have different conditions or that are not covered by any award.

      However this wording is most likely to cover salaried employees (versus hourly rate employees) who are paid a fixed annual amount.
      Fair Work makes sure that salaried workers can not be exploited by employers and there is a provision that a salaried worker can not be paid less than the minimal entitlements of an award.
      Adherence to this is probably the reason for the contract wording.

      A basic example might be like this…
      The award states permanent fulltime hourly rate of $40 plus overtime 1.5x 3 hours then double time.
      Basic annual salary according to award for hourly paid employee $79040 plus overtime
      Employer offers annual salary of $85000, no overtime paid
      If the employee works 48 weeks a year and 3 hours overtime a week.
      The hourly employee earns $8640 overtime and a total of $87680 a year.
      The salaried employee is only getting $85000 therefore the salaried employee needs to be compensated the difference to comply with the Fair Work Act and the terms of the employment contract.

      The contract is talking to both types of employees.
      Firstly the hourly rate employee
      "Hours worked outside or in addition to your ordinary hours will be paid at the applicable penalty rates prescribed by the award, calculated on your ordinary hourly rate."

      Then it is including the salaried worker, thats why it says "Otherwise"

      Otherwise meaning you are paid by the hour otherwise you are salaried and paid like this…

      "you agree that your wages are intended to compensate you for all hours worked, so that hours worked outside your ordinary hours of work will not attract additional pay unless:…"

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  brad1-8tsi on 02/04/2019 - 12:26

  I'd ask HR or the manager to explain it. I bet they don't know.

  I had an issue and the explanation contradicted itself and you could tell the HR person wasn't entirely convinced they had it right. I just kept asking for examples of how the payment worked. In the end they rewrote the clause in plain english and gave an example.

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  [Deactivated] on 02/04/2019 - 16:29

  +2

  I suggest you get your union to read it over for you

  • 

    Vote for Pedro on 18/04/2019 - 22:04

    This 👆 is the best advice!