Court Decision_Salaries and Pay Arrangements_FAQ

This FAQ outlines the recent Court Decision on Salaries and Pay Arrangements

On 5 September 2025, the Federal Court handed down a decision against Woolworths and Coles that changes how employers across all industries can pay staff on salaries.

The ruling makes clear that businesses can no longer rely on “averaging out” higher payments in some pay periods to cover shortfalls in others. Each pay cycle now stands on its own.

The Fact Sheet outlines; Can employers still use set-off clauses in employment contracts, annualised salaries, do you need to increase salaries, what needs to be referenced in contracts, what records do employers need to keep and what happens if you don’t comply