Legal Definitions - guaranteed annual wage plan

A guaranteed annual wage plan is a method of paying employees where the employer agrees to pay a minimum amount of money each year or provide a minimum number of hours of employment each year. This is done to ensure that employees have a stable income throughout the year.

For example, an employer may agree to pay their employees a certain amount of money each week, even if there is no work available during certain times of the year. This helps to keep the workforce stable and ensures that employees have a reliable source of income.

Another example of a guaranteed annual wage plan is when an employer agrees to provide a certain number of hours of work each year, regardless of whether there is work available or not. This helps to ensure that employees have a consistent income and can plan their finances accordingly.

Overall, a guaranteed annual wage plan is a way for employers to provide their employees with a stable income throughout the year, even if there are fluctuations in the amount of work available. This helps to create a more stable workforce and can be beneficial for both employers and employees.