NEW AUSTRALIAN FINANCIAL YEAR 2023-2024: ACTIONS FOR EMPLOYERS
Date: June 27, 2023
· The Fair Work Commission (FWC)’s decision on minimum pay increases the national minimum wage by approximately 8.6% and minimum modern award rates by 5.75%.
· The superannuation guarantee rate is 11% effective from 1 July 2023. The superannuation rate is currently scheduled to progressively increase to 12% by July 2025.
· The high income threshold is $167,500 effective from 1 July 2023.
· It is now unlawful to include pay secrecy clauses in new (or varied) employment agreements.
· Employers now have a positive duty to take reasonable and proportionate measures to eliminate sex discrimination.
· Changes have been made to the Fair Work Act 2009 (Cth) (FW Act) provisions relating to requests for flexible working arrangements.
ISSUE 1: INCREASE TO AUSTRALIAN NATIONAL MINIMUM WAGE AND MODERN AWARD RATES
The FWC has granted an approximate 8.6% increase to the national minimum wage and a 5.75% increase to the minimum pay rates under modern awards. The weekly national minimum wage is $882.80 per week (based on a 38 hour week), or $23.23 per hour, with effect from 1 July 2023. The national minimum wage will apply to any employee who is not covered by a modern award.
The increases will operate from 1 July 2023 and take effect in relation to a particular employee on the start of the employee’s first full pay period on or after 1 July 2023.
ISSUE 2: INCREASE TO MINIMUM AUSTRALIAN SUPERANNUATION CONTRIBUTIONS
Employers’ minimum superannuation contribution rates will be as follows:
- From 1 July 2023 – 11%;
- From 1 July 2024 – 11.5%;
- From 1 July 2025 – 12%.
ISSUE 3: INCREASE TO HIGH INCOME THRESHOLD
The high income threshold is $167,500 with effect from 1 July 2023. This is relevant to the issue of whether an employee is able to make an unfair dismissal claim and when they can, it imposes a cap on potential compensation. Where an employee earns above the high income threshold (and they are not covered by an award or enterprise agreement) the employee may not pursue an unfair dismissal claim. The unfair dismissal compensation cap is $83,750 from 1 July 2023.
ISSUE 4: PAY SECRECY CLAUSES
It is now unlawful to include pay secrecy clauses in new (or varied) employment agreements and employees must be free to choose to disclose, or not disclose, details about their remuneration and any terms and conditions of their employment that are reasonably necessary to determine their remuneration. Employers should remove any pay secrecy clauses from template employment agreements.
ISSUE 5: POSITIVE DUTY TO ELIMINATE SEX DISCRIMINATION
The Sex Discrimination Act 1984 (Cth) (SD Act) now provides that “it is unlawful for a person to subject another person to a workplace environment that is hostile on the ground of sex”. The SD Act has also been amended to state that employers must take reasonable and proportionate measures to eliminate, as far as possible, discrimination on the ground of a person’s sex, sexual harassment or harassment on the ground of sex, and persons being subjected to a hostile workplace environment.
ISSUE 6: REQUESTING FLEXIBLE WORKING ARRANGEMENTS
Employers must take certain action following the receipt of a valid flexible working arrangement request. Only certain employees are permitted to make such a request. In response to a valid request, employers must give the employee a written response to the request within 21 days.
An employer may only refuse the request if the matter has first been discussed with the employee and genuinely tried to reach an agreement with the employee about making changes to the employee’s working arrangements. Any refusal must be on reasonable business grounds and the employer must consider the consequences of the refusal for the employee. Disputes about these provisions may now be referred to the FWC.
CONTACT
Please contact us if your organisation requires assistance with employment law or industrial relations matters.
Whitehall Workplace Law
Level 14, 330 Collins Street, Melbourne, VIC 3000
This publication is for general reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice should always be obtained before taking any action based on this publication.
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