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Annualised salary changes under Legal Services Award due next week

Annualised salary changes under Legal Services Award due next week


Workplace Relations Young Lawyers 


Law firms have until Monday March 1 to reconcile the annualised salaries of law clerks, law graduates and paralegals under Fair Work’s new underpayments legislation.

Employers must calculate whether the amount they pay employees covered by the award is enough to compensate them for all of their award entitlements under the Fair Work legislation.

The new requirements specifically apply to employees covered by the Legal Services and Clerks Awards, working full-time and earning under the current high-income threshold of $153,600. Admitted lawyers are excluded from the award.

When the new ruling comes into effect , employers must ensure no employee is worse off than they would have been under their Award.

The LIV Workplace Relations Executive Committee has pointed out that an employer who fails to comply with the terms of a modern award annualised wage clause will be exposed to the risk of underpayment claims and potential civil penalties under the Fair Work Act for breaches of the modern award. The maximum penalty for each contravention of the Fair Work Act by a body corporate is $63,000, and by an individual is $12,600.

Fair Work Inspectors can also issue an infringement notice of $3150 per contravention for a body corporate, for contravening record-keeping and pay slip obligations under the Fair Work Regulations.

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