168MApplication of modern awards to Norfolk Island employment not intended to reduce take‑home pay

168M Application of modern awards to Norfolk Island employment not intended to reduce take‑home pay

(1) There is not intended to be a reduction in take‑home pay as a result of a modern award applying on or after 1 July 2018 to an employee in Norfolk Island employment to whom a transitional NI instrument applies on 30 June 2018 under Schedule 1A. (2) An employee’s take‑home pay is the pay an employee actually receives: (a) including wages and incentive‑based payments, and additional amounts such as allowances and overtime; but (b) disregarding the effect of any deductions that are made as permitted by section 324.

Note: Deductions permitted by section 324 may (for example) include deductions under salary sacrificing arrangements.

(3) An employee in Norfolk Island employment suffers a reduction in take‑home pay if, and only if: (a) on 30 June 2018 a transitional NI instrument applies to the employee under Schedule 1A; and (b) on and after 1 July 2018 a modern award applies to the employee; and (c) on and after 1 July 2018 the employee is employed in the same position as (or a position that is comparable to) the position he or she was employed in on 30 June 2018; and (d) the amount of the employee’s take‑home pay for working particular hours or for a particular quantity of work after 30 June 2018 is less than what would have been the employee’s take‑home pay for those hours or that quantity of work on 30 June 2018; and (e) that reduction in the employee’s take‑home pay is attributable to the termination of the transitional NI instrument and the application of the modern award.

Note: At the end of 30 June 2018:

(a) transitional NI instruments are terminated by Schedule 1A; and
(b) the limitation under subsection 47(2A) on modern awards applying to employees in Norfolk Island employment ends.