(1) An undertaking given by an employer to an employee is a guarantee of annual earnings if:
(a) the employee is covered by a modern award that is in operation; and
(b) the undertaking is an undertaking in writing to pay the employee an amount of earnings in relation to the performance of work during a period of 12 months or more; and
(c) the employee agrees to accept the undertaking, and agrees with the amount of the earnings; and
(d) the undertaking and the employee's agreement are given before the start of the period, and within 14 days after:
(i) the day the employee is employed; or
(ii) a day on which the employer and employee agree to vary the terms and conditions of the employee's employment; and
(e) an enterprise agreement does not apply to the employee's employment at the start of the period.
(2) However, if:
(a) an employee is employed for a period shorter than 12 months; or
(b) an employee will perform duties of a particular kind for a period shorter than 12 months;
the undertaking may be given for that shorter period.
(3) The annual rate of the guarantee of annual earnings is the annual rate of the earnings covered by the undertaking.