Questions & Answers - Pay frequency

Question:

Is it possible to continue to pay staff on a monthly basis where the contract does not specify a pay frequency?

Answer:

Unless a relevant award or enterprise agreement provides otherwise, you may continue to pay employees on a monthly basis if a pay frequency is not specified in their employment contracts. This is covered by clause 323(1)(c) of the Fair Work Act, which provides that "an employer must pay an employee amounts payable in relation to the performance of work at least monthly".

However, a number of awards require employees to be paid on a more frequent basis (usually fortnightly). If you have employees who are covered by an award it is recommended that you check whether a pay frequency is specified to ensure that you are not breaching the terms of the award. This position will need to be reviewed on 1 January 2010 when the modern awards commence to make sure that you comply with any pay frequency that will apply to your employees from the beginning of next year.

Question:

Is it possible to have an agreement with an employee to be paid quarterly if both parties agree? The new Act states minimum paid monthly, but does agreement of both parties allow modification?

Answer:

No, the Fair Work Act provides that wages must be paid at least monthly.