(AM2016/13) [2019] FWCFB 4368. Hatcher, VP; Dean; DP; Saunders, DP.

A Full Bench of the Fair Work Commission has published its preferred option for the annualisation of employee wages. That is combining: Minimum weekly wages, Allowances, Overtime penalty rates, Weekend and other penalty rates, and Annual leave loading and diving the result into equal sums of (eg) weekly/fortnightly wages.

The FWC made it clear that an employer (under common law) is able to pay an employee to whom an award applies an annualised salary arrangement that compensates for or “buys out” various identified award entitlements without engaging with any annualised wage arrangement clause in that award and without there needing to be an annualised wage arrangement clause in that award, in accordance with the principles stated in Australia and New Zealand Banking Group Limited v Finance Sector Union of Austral and Linkhill Pty Ltd v Director, Office of the Fair Work Building Industry Inspectorate. The model clauses do not seek to invalidate or regulate any such contractual arrangements.

The full decision and model clauses (there are 3) can be found here:


Greg Reiffel Consulting can draft contracts of employment that suits your needs.

Greg Reiffel Industrial Relations & Human Resources Consulting has been providing the following services to businesses for over 30 years:


  • General HR and IR advisory service.
  • Fair Work Commission representation (eg unfair dismissals, adverse actions, etc.).
  • Workplace investigations and mediations.
  • Policies and procedures.
  • Discipline & Termination.
  • People Audits (are you at risk of prosecution?).
  • Enterprise Agreements, Contracts of Employment, Individual Flexibility Agreements.
  • On-site HR services.


Contact Greg on 0438 906 050 or mailto: greg@gregreiffelconsulting.com.au.