HR Elements

Boarding and buzzing 💻

Zoe is heading to Perth for a big week ahead. Launching Wellbeing360, delivery of Employment Hero implementation Q&As and making time for some team huddle fun.

Nothing better than work trips that are all about people, connection and making things better together.

See you soon Zoe ✈️

𝐂𝐨𝐮𝐫𝐭 𝐫𝐮𝐥𝐢𝐧𝐠 | 𝐍𝐨 𝐦𝐨𝐫𝐞 “𝐩𝐨𝐨𝐥𝐢𝐧𝐠” 𝐬𝐚𝐥𝐚𝐫𝐢𝐞𝐬 𝐚𝐜𝐫𝐨𝐬𝐬 𝐩𝐚𝐲 𝐩𝐞𝐫𝐢𝐨𝐝𝐬

A recent Federal Court decision has major implications for salaried staff arrangements. Woolworths and Coles argued that annual salaries could “pool” entitlements, offsetting busy periods (like Christmas overtime) with quieter ones. Justice Perram disagreed.

Key takeaways:
• Salaries must cover award entitlements in every single pay cycle – no averaging across months.
• Employers must keep immediately clear records of overtime and penalty hours (beyond rosters or clock-ins).
• This ruling conflicts with an April 2025 decision that allowed annual averaging, leaving the law unsettled for now.

What employers need to do:
1️⃣ Make sure each pay cycle’s salary fully satisfies award entitlements.
2️⃣ Only explore flexibility clauses with legal advice.
3️⃣ Keep detailed, inspector-ready overtime and penalty records.
4️⃣ Monitor industry efforts for “Exemption Rates” to simplify salaried roles.
5️⃣ Don’t expect a quick legislative fix, award variations are the more likely path.
6️⃣ Stay across proposed award changes to prepare in advance.

👉 Until the courts resolve the inconsistency, the safest approach is strict compliance: pay right every cycle and keep your records straight.

At HR Elements, we help employers cut through the complexity and stay compliant with shifting employment law. If you’re unsure how this decision impacts your business, we can guide you through the practical steps to protect both compliance and operational flexibility.