A guarantee of annual earnings is an agreement where an employer pays an employee at least the high income threshold over a year or more, excluding them from certain award entitlements.
In this arrangement, if an employee earns over a certain high income threshold, they may not be entitled to specific benefits typically provided under their relevant award. This could include overtime rates, penalty rates, or other allowances. It's a trade-off where the employee receives a higher base salary in exchange for not receiving these additional award entitlements.
Whether you're looking for definitions of other related terms or just browsing, our full list offers a wealth of information at your fingertips.
Back to Glossary