AN120673 – Charitable Institutions (Professional Staff Social Workers)(State) Award
29.1 Where agreed between the employer and an employee, an employer may introduce remuneration packaging. Neither the employer nor the employee may be compelled to enter into a remuneration packaging agreement. Employees may exercise their right to continue to receive their applicable award salary.
29.2 Remuneration packaging means that an employee will have part of their remuneration packaged into a fringe benefit, which does not constitute a direct payment to the employee but is payable to a bona fide third party.
29.3 The terms and conditions of a remuneration package offered to an employee shall not, when viewed objectively, be less favourable than the entitlements otherwise available under the award and shall be subject to the following provisions.
(a) A copy of the agreement shall be made available to the employee.
(b) The employer shall ensure that the structure of any package complies with taxation and other relevant laws.
(c) All award conditions, other than the salary and those conditions as agreed in sub-clause (d) below shall continue to apply.
(d) Where packaging arrangements apply, the employer and employee may by mutual agreement delete the application of certain award clauses, excepting clauses involving: Annual Leave; Sick Leave; Long Service Leave; Personal/Carer’s Leave; Public Holidays; and Grievance and Disputes Resolution Procedures.
(e) The employee shall be entitled to inspect details of the payments made under the terms of this agreement.
(f) Superannuation Guarantee Contributions will be calculated with reference to the salary the employee would have been entitled to receive but for the remuneration packaging agreement.
(g) Any allowance, penalty rates, overtime, payment for unused leave entitlements, other than any payments for leave taken whilst employed, shall be calculated by reference to the salary which would have applied to the employee but for the remuneration packaging agreement.
(h) Pay increases granted to employees in accordance with this award shall also apply to employees subject to remuneration packaging arrangements.
(i) Remuneration packaging arrangements shall cease during any period of leave without pay, including periods of unpaid sick leave.
(j) Where at the end of the Fringe Benefit Tax year the full amount allocated to a specific benefit has not been utilised, it will be paid as salary, which will be subject to appropriate taxation requirements. By agreement between the employer and the employee, any unused benefit may be carried forward to the next period on the basis that any FBT obligation is accepted by the employee.
(k) A remuneration package may be changed or terminated at any time, by agreement of the parties.
(l) Either party may unilaterally withdraw from a remuneration packaging agreement by providing one month’s written notice to the other party. A lesser period of notice or no notice may be provided in circumstances identified in subclause 29.3(m).
(m) The employer may terminate a remuneration packaging agreement, at any time, should the employer cease to attract exemption from the payment of Fringe Benefit Tax or should amendments to legislation be made that are detrimental to, or increase the costs of remuneration packaging arrangements.
(n) Where a remuneration packaging agreement is terminated the employee’s salary will revert to the applicable award classification rate the employee would have been entitled to receive but for the remuneration packaging agreement.
(o) In the event that the employee ceases to be employed by the employer this agreement will cease to apply as at the date of termination. Benefits not paid on or before the date of termination shall be treated as salary and the appropriate tax deducted.
