Changes in employment law - what this means for employers

Employment Law: 18 July 2023

Author: Bianca Mazzarella - Our People

2023 has proven to be a year of significant change in the employment and workplace relations space.

In case you have been struggling to keep up, here is a summary of what to look out for:

Pay secrecy clauses are out

As of 7 June 2023, it is unlawful to direct employees to keep the terms of their remuneration confidential.

Should such provisions continue to be included in contracts, employers may be found liable to pay fines of up to $66,600 per breach.

This serves as a good reminder to have contracts reviewed to ensure any conflict with these new workplace rights are removed.

Superannuation changes

As of 1 July 2023, superannuation payments will increase from 10.5% to 11%.

To avoid any underpayment claims, employers should ensure employees are paid the minimum amounts under the superannuation guarantee legislation.

Minimum wage rate hike

Effective 1 July 2023, minimum award rates will increase by 5.75% and the National Minimum Wage will increase to $23.23 per hour.

Employers need to be mindful of their payroll obligations and review employment agreements in light of these significant minimum wage increases.

Paid domestic violence leave changes

As of 1 August 2023, employees employed by small businesses can access up to 10 days paid leave for domestic violence. Notice and evidence requirements can be tricky to understand. Please reach out if your business requires any assistance with this.

Fixed term contracts

As of 7 December 2023 (after 12 months warning), employers in certain industries will not be able to rely on being able to use fixed term contract for a period exceeding 2 years or 2 executive contracts.

Whilst there are some exceptions to the rule, if an employer enters into a fixed term employment agreement with an employee that contravenes the rules, the contract will be held to be invalid (including the expiry date of the contract) and the employee will be held to be a permanent employee. This means the employee will be subject to standard termination rules in applicable legislation and industrial rules.

Now is the time to get advice to assess if exceptions may apply to your business and if fixed term contracts can continue to be lawfully used or whether those arrangements need to be reviewed.

Recommendations

We recommend employers take this opportunity to review their current contracts to ensure compliance with new legislation and relevant modern awards.

Please contact Bianca Mazzarella, Senior Associate (bmazzarella@aitken.com.au) for guidance in relation to changes in employment law and how your business may be impacted.