Guarantee of annual earnings and annual rate of guarantee
(1) An undertaking given by an employer to an employee is a guarantee of annual earnings if: (a) the employee is covered by a modern award that is in operation; and (b) the undertaking is an undertaking in writing to pay the employee an amount of earnings in relation to the performance of work during a period of 12 months or more; and (c) the employee agrees to accept the undertaking, and agrees with the amount of the earnings; and (d) the undertaking and the employee’s agreement are given before the start of the period, and within 14 days after: (i) the day the employee is employed; or (ii) a day on which the employer and employee agree to vary the terms and conditions of the employee’s employment; and (e) an enterprise agreement does not apply to the employee’s employment at the start of the period. (2) However, if: (a) an employee is employed for a period shorter than 12 months; or (b) an employee will perform duties of a particular kind for a period shorter than 12 months; the undertaking may be given for that shorter period. (3) The annual rate of the guarantee of annual earnings is the annual rate of the earnings covered by the undertaking.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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