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Please note: A Remuneration Policy cannot be ‘standardised’ and therefore should be customised for each organisation.
This sample policy is provided as a starting point for small to medium organisations operating under a partnership, incorporated association (not for profit organisation) or proprietary limited structure; and not operating in an industry in which remuneration, or aspects of it, are subject to regulation or disclosure requirements. Such organisations should seek advice in relation to their compliance obligations and incorporate this into the Remuneration Policy.
A Remuneration Policy should also explain the organisation’s policy and practice in relation to superannuation, salary sacrifice and other related staff benefits. These can vary greatly between organisations as well as between different groups of employees. As such, care should be taken in drafting references to such in a policy to ensure the policy does not detract from, or breach, minimum entitlements in law, taxation law, enterprise agreements or awards, or confuse the benefits of different groups of employees.
The Sample Remuneration Policy assumes an organisation is paying either market rates and/or in accordance with rates prescribed in an Enterprise Agreement. No mention is made of bonus or other ‘at risk’ remuneration as this cannot be reduced to just one example. Organisations contemplating such schemes should obtain advice on an appropriate incentive scheme and the wording of any policy document.
Employers whose practice is to pay minimum wages under awards is not addressed in the sample, as such employers are less likely to adopt a formal remuneration policy. However, if an organisation is paying all employees market rates, it may be necessary to reference any award that applies to the employment of some or all employees.
Ai Group’s HR Consultancy can assist with the development and drafting of an organisation specific remuneration policy and practices.
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|23/07/2020||This policy has been reviewed and no significant changes have been made.|
|21/05/2019||This policy has recently been reviewed and has been updated to include new clauses around ‘Gender pay objectives’, ‘Decision making responsibilities’ and ‘Objectives for executives and senior managers’. Further information has also been included about remuneration for employees in an organisation that aren’t covered by an Enterprise Agreement.|
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