Key decision – salaried employment & record keeping

A recent decision of the Federal Court has unsettled longstanding employer practices in relation to two key areas: the capacity for set-off clauses to cover award entitlements for salaried employees; and strict requirements for employee record-keeping. The ACA’s IR advisor, Tom Earls from Fair Work Lawyers, sets out the key takeaways from this decision.
In mid-September 2025, the Federal Court handed down a decision regarding salaried engagements and timekeeping that, if not overturned on appeal, will have wide-ranging impacts on businesses who engage employees on above-award salaried contracts but whose employment is covered by a modern award (or enterprise agreement).
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If you have a question to pose, see the ACA’s IR advisory.
The matters in this article are necessarily general in nature and does not constitute legal advice. The reader should seek legal advice in relation to their own specific circumstances. For more information, contact Fair Work Lawyers.