An employer that gives an award-covered employee a guarantee of annual earnings (a written undertaking, accepted by the employee within 14 days of starting or of a variation, to pay earnings above the high income threshold for 12 months or more, where no enterprise agreement applies) first notifies the employee in writing that the modern award will not apply while the guarantee exceeds the threshold, complies with the guarantee during the guaranteed period (subject to lawful reductions such as unpaid leave or industrial action), and, if it terminates the employment before the period ends, pays earnings at the guaranteed annual rate for the part of the period before termination. Earnings exclude amounts that cannot be determined in advance (commissions, bonuses, non-guaranteed overtime) and superannuation guarantee contributions.
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