DiscoverThe People Powered Business PodcastWhat’s the Problem with Set Off Clauses in Employment Contracts?
What’s the Problem with Set Off Clauses in Employment Contracts?

What’s the Problem with Set Off Clauses in Employment Contracts?

Update: 2025-10-07
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Hello and welcome to Episode 292 of the People Powered Business Podcast!

In today’s episode we’re dipping our toes into a very hot topic at the moment – set off clauses in employment contracts and why they are proving to be such a problem.

We start by unpacking what are set off clauses actually are – a clause in a contract that allows the employer to pay a salary which incorporates base rates + allowances etc and other award conditions that would otherwise be an entitlement the employee should receive.

We then look at when can they be used and how, when written correctly they can protect you as the employer and cover a lot of things.

Finally we take a look at a case involving Coles and Woolworths that really has the experts talking, and highlights how these clauses can and can’t be used, and why so many businesses are currently at risk of huge back payment claims as a result.

An Invitation: If you’d like to connect with other businesses who are also juggling the challenges of teams, I’d love you to join us inside our free Facebook Group, The People Powered Community, so I can learn more about what’s working for you and any challenges you might be having.

Join Here. https://www.facebook.com/groups/hrsupportaustralia

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What’s the Problem with Set Off Clauses in Employment Contracts?

What’s the Problem with Set Off Clauses in Employment Contracts?