16/09/2026
Paying above award isn't enough — timing and proof matter too.
Following the Coles and Woolworths decisions, the "Better Off Overall" test isn't just an annual check, it must be satisfied within each individual pay cycle. And employers now need the records to prove it.
On compliance:
✅ A generous annual salary doesn't excuse a shortfall in a specific week, fortnight or monthly pay cycle
✅ Overtime, penalties and allowances must still be accounted for when they're earned
✅ Salary set-off clauses need to be reviewed against actual hours worked data, not assumed
On record keeping:
✅ Track actual hours worked (not rostered or estimated hours)
✅ Capture overtime and penalty rates when triggered, and then
✅ Map the annualised/set-off salary against Award entitlements, pay cycle by pay cycle
✅ Keep evidence this reconciliation happened at the time, not reconstructed after the fact
The takeaway: "We pay well above Award" is no longer a defence on its own, and without granular, up-to-date records, you can't prove compliance.
Not sure if your set-off arrangements or record keeping would hold up under scrutiny? Let's talk - email [email protected]