Commonwealth Consolidated Acts

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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.

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