Dec 23rd, 2022
As we approach the end of 2022, here are some of the notable changes in the employment relations landscape that occurred across the year.
Minimum Wage Increase
From July 1, the national minimum wage increased by 5.2%. For employees covered under a modern award, minimum rates of pay increased by the greater of either 4.6% or $40 per week.
For state system employers in Western Australia only, the minimum wage for adult employees increased by $40.90 per week, boosting the minimum wage to $819.90 per week. Award rates of pay increased by either $40.90 per week (for award rates below $887.40) or 4.65% (for award rates of $887.40 and above).
We covered this increase in more detail in an earlier article this year – see this link.
Changes to Superannuation
Also from July 1, the superannuation guarantee rate increased from 10% to 10.5%. The ATO also removed the previous $450 threshold for when super is paid – this means employees are now entitled to receive super payments even if they earn less than $450 in a month. Employees under 18 will only be entitled to super if they work more than 30 hours per week.
Respect at Work – Sexual Harassment Reforms
In line with the Federal Government’s commitment to implement all 55 recommendations of the 2020 Respect@Work Report, this year the Anti-Discrimination and Human Rights Legislation Amendment (Respect at Work) Bill 2022 passed parliament. The Respect at Work Bill introduces changes to help prevent sexual harassment in the workplace, including:
- Assigning a positive duty for employers to take a proactive stance on preventing sexual harassment, sex discrimination and other related victimisations in the workplace. This means that businesses should not be merely “reacting” to instances of sexual misconduct but putting steps into place before any such conduct occurs to minimise the chances it does.
- Making it an offence to subject another person in the workplace to material that is hostile on the basis of sex. This includes displaying obscene material, sexually related “banter”, or any other jokes or comments that are offensive or might make someone feel excluded, intimidated, or humiliated.
- Enabling the Australian Human Rights Commission (AHRC) to investigate instances of systemic, unlawful workplace discrimination, and issue compliance notices if they believe employers have failed to meet their obligations.
These provisions are now in effect, as the Bill received Royal Assent on December 12. However, changes allowing the AHRC to investigate and issue compliance notices will not take effect until 12 months from this date.
Nevertheless, employers have been urged to implement changes as soon as possible to ensure that workplaces are a safe environment and free from sexual harassment. A website has also been developed by the AHRC and the Respect@Work council was also developed to assist employers and employees with these changes. It can be seen here -
https://www.respectatwork.gov.au/
Secure Jobs, Better Pay
The
Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 has recently passed, aimed at addressing a number of issues including but not limited to job security, gender equity, and multi-employer bargaining. Changes emerging from the Bill include:
- Prohibiting Pay Secrecy Clauses – New terms in employment contracts prohibiting discussion of remuneration will no longer have effect, and it will be considered a workplace right for an employee to disclose (or refuse to disclose) information concerning their remuneration, or ask other employees about their remuneration.
- Increased Employee Rights with Flexibility Requests – Employers now have a greater obligation to genuinely try and reach agreement before outright refusing an employee’s request for a flexible working arrangement or an extension of an unpaid parental leave period. This includes an obligation to outline any alternatives that the employer is willing to agree to. Employees may also dispute a refusal of such requests with the Fair Work Commission, who will have the power to grant an employee’s request.
- Fixed-Term Contracts – The Bill introduces greater limitations on fixed term contracts, specifically that they must not extend for 2 or more years (including extensions or consecutive contracts). This change is intended to increase job security and discourage employers from engaging employees on consecutive fixed term contracts when they are otherwise a permanent, continuing employee of the business. Note these changes come into force from 7 December 2023 and some exceptions do apply (e.g. those engaged on training agreements or those earning above the high-income threshold which is currently $162,000).
- Prohibiting Sexual Harassment in Connection with Work – Protections against sexual harassment will be expanded to include not just sexual harassment between two employees, but also any sexual harassment involving third parties such as contractors, suppliers, and members of the general public.
- Anti-Discrimination Measures – The Bill will add breastfeeding, gender identity, and intersex status to the list of attributes protected from discrimination.
- Multi-Employer Bargaining – This will essentially be split into 3 streams; single-interest bargaining, supported bargaining, and cooperative workplaces bargaining. The Better Off Overall Test (BOOT) has also been amended to simplify the process of assessing whether an employee is better off overall compared to modern award. Considering their scope, these changes are unlikely to have a significant effect on small businesses.
While some of these changes are already in effect as of December 7 (the day after Royal Assent), others will have staggered commencement dates to allow for a smooth transition.
Paid Family and Domestic Violence Leave
The
Fair Work Amendment (Paid Family and Domestic Violence Leave) Bill 2022 passed earlier this year. It will amend the National Employment Standards (NES) from 5 unpaid days to
10 days of paid family and domestic violence leave. This will be paid at the employee’s ordinary rate of pay, and casual employees will
also be entitled to this paid leave. This entitlement will reset each year, instead of accruing progressively like annual leave.
It will take effect from
1 February 2023, but small businesses (those with 14 employees or less) will be given a grace period of an additional 6 months to prepare for the changes.
We covered this increase in more detail in an earlier article this year – see this
link to read more about these changes.
Expansion of Parental Leave Pay (PLP)
The government announced that its Paid Parental Leave scheme has been approved to gradually expand from the current entitlement of 18 weeks to a total of 26 weeks. The changes include:
- Combining the current PLP and Dad and Partner Pay into a single payment, allowing parents to share the PLP entitlement and take days at the same time,
- Introducing a combined family income as part of the income test, in addition to existing individual income limits,
- Allowing parents to access payments up until the child’s second birthday.
These changes will come into effect on 1 July 2023, which is when PLP will increase to 20 weeks. The entitlement will then increase by 2 weeks in July each year, leading up to July 2026.
In Summary
There are a number of important changes occurring in 2023 for the workplace relations space. It’s important for employers to take stock of these changes and consider the impact on their own systems and processes to ensure compliance.
Back to News