The Australian Industrial Relations Commission has decided to change the Banking, Finance and Insurance Award 2010 applying to credit union employees by removing the exemption from overtime payments and shiftwork allowances for employees earning more than 15% above the level 5 rate of pay and allowing employers to pay an annualised salary in satisfaction of the minimum wages, allowances, overtime and penalty rates and annual leave loading.

If an annualised salary is paid:

• the employer must advise the employee in writing of the annual salary and which of the provisions of the award will be satisfied by the annual salary;
• the annual salary must be no less than the amount the employee would have received under the award (calculated over the year, or if the employee’s employment ceases earlier, the period that has been worked); and
• the employer must review the annual salary at least annually to ensure that the compensation is appropriate having regard to the award provisions that are included in the salary.

The exemption provisions in pre-modern award instruments will continue to apply until 30 June 2010