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.

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