16 May 2015

Just another brick in the wall

Employment Law
Federal

Asked

Dear Sir/Madam, I need guidance as to the following. Do any modern awards apply to managing directors of a company who are paid less than the high income threshold? 

If the modern awards do not apply to them, would the National Employment Standard apply, knowing it is a small business? Please advise what benefit the employee would get if not covered by a modern award apart from protection from unfair dismissal.

Answered

A managing director is an employee of the company. Modern awards apply to all employees covered by the national workplace relations system and vary depending on the industry the employee works in. The following link will assist you in finding the applicable award:

http://www.fairwork.gov.au/awards-and-agreements/awards

Modern awards may not apply to some managers or high income employees who have an appropriate written guarantee of annual earnings. However, as your question states that the employee is paid less than the high income threshold, it would seem that this exclusion will not apply.

Be aware that a business can be covered by more than one award.

The National Employment Standards apply to all employees and make up the minimum employee entitlements. An award, registered agreement or employment contract can't provide for conditions that are less than the National Employment Standards.We suggest that you read the commentary within our Employment guide.

Regards Mentor