guarantee of annual earnings
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.
Explore more terms
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