The Fair Work Commission’s 2024 IR reforms will raise the National Minimum Wage to $24.10 per hour and increase modern award minimum wage rates by 3.75%, effective July 1, 2024. The Superannuation Guarantee will also increase to 11.5% from July 2024 and 12% from July 2025. New rights for workplace delegates will allow them to represent employees in various matters and access workplace facilities, with protections against unreasonable employer actions. Employers must review employee wages, update payroll systems, adjust budgets, and ensure compliance with these new regulations.
The Fair Work Commission (“FWC”) has recently published its Annual Wage Review. The FWC have announced:
• The National Minimum Wage will increase to $23.23 per hour, or $882.80 per week based on a 38 hour week.
• There will be a 5.75% increase to minimum modern award wages.
• The increase will commence from the first pay period following 1 July 2023.
The FWC’s decision will greatly impact many businesses given the current economic climate and struggles faced by companies over the past 12 months. As such, we have set out the changes and what employers need to know moving forward.
In the recent case of Wipro, the New South Wales Court of Appeal changed the NSW position on how statutory long service leave operates. This decision narrows who may have an entitlement to long service. In particular, the decision held that in order for the employment period to count towards ‘continuous service’ and qualify for long service leave, the work must have a substantial connection to NSW.
As we commence 2023, there is no doubt that this year will bring various challenges to many employers. As a result of various factors, including high inflation rates, rising interest rates, a slowing economy and lingering effects of the Covid 19 Pandemic, it is likely that this year will see organisations experience uncertainty and/or financial hardship. Recent changes to legislation will also put upward pressure on a number of businesses. This will likely result in organisations opting to restructure their businesses or make staff members redundant as a way to cut costs or down-size their businesses.
The passing of the Secure Jobs, Better Pay legislation constitutes the biggest shake-up to Australia’s national industrial relations framework in over a decade. This alert provides a summary of the key amendments to Australia’s workplace laws, in addition to practical guidance on steps that employers need to take to ensure they are compliant with the Act.
In our fifth publication of the ongoing series, we now examine the role of modern awards and enterprise agreements in the regulation of employment terms and conditions. Other than the NES, the Fair Work Act 2009 (Cth) (“Fair Work Act”) provides for a number of mechanisms to regulate basic terms and conditions of employment, the most important being modern awards and enterprise agreements.
The Commissioner of Taxation (“the Commissioner”) is ramping up efforts to identify unpaid superannuation entitlements by businesses who have been incorrectly operating under the assumption that contractors are not entitled to receive superannuation contribution payments. Under the Superannuation Guarantee (Administration) Act 1992 (“the Act”), contractors may be entitled to superannuation where they are classified as an employee for the purposes of the Act. The definition of ‘employee’ under the Act is much broader than that commonly understood.
Whether a worker is a contractor or employee has long been contemplated by the Courts. Recently it was revisited in the recent proceedings of Pruessner v Caelli Constructions Pty Ltd [2022] FedCFam2G (“Pruessner v Caelli”).
Menulog’s application for a new modern award for its drivers, signals a shift by some in the gig economy to recognising that these workers are in fact employees. This may have significant ramifications for the industry at large.
The thorny issue of whether an individual is an employee or contractor is of great significance and getting the classification wrong can mean the imposition of significant monetary penalties and liability for outstanding wages, taxes and other benefits. However, knowing with some certainty whether a person is an independent contractor or not is not clear-cut. In fact, this issue has occupied much of the Court’s time over the years and been the subject of considerable judicial consideration.
The High Court of Australia appears to have jettisoned previous views, and have recently handed down two significant decisions that revise the approach to be taken by courts when determining whether a person is an employee or independent contractor.
It is a question that comes up more frequently than one might think. That is, if an employee works for the same or a related entity over a number of years in different states and even countries, does all their service count for the purposes of long service leave?
In a significant win for employers, the High Court has handed down its decision overturning the Full Federal Court decision in WorkPac Pty Ltd v Rossato [2020] FCAFC 84 which permitted casual employees to receive the 25% casual loading and nonetheless claim paid service entitlements only applicable to permanent staff, where certain conditions applied.
The High Court decision now squarely aligns with the newly introduced casuals provisions in the Fair Work Act 2009 (Cth) which took effect on 27 March 2021. These legislative amendments affirmed that if agreed under terms of an employment contract, a casual employment relationship that mutually acknowledges no firm commitment to an ongoing working relationship or a regular pattern of work between employer and employee, will be sufficient to curtail any subsequent claims for service related entitlements enjoyed by permanent staff provided the parties observe the terms of the casual contract.