The One Minute Summary

• Minimum award rates have increase by 3.5% for employees paid at the Award rate.
• Employer superannuation contributions have now increased to 12%.
• The Government paid parental leave scheme has increased to 24 weeks.
• Employees have a new way to sue employers for serious breaches of privacy.
• The NSW Community Services sector Portable Long Service Leave scheme has now commenced.
• CPI data released by the ABS shows an annual rise of 2.1% in the 12 months to May 2025.

More information on these key changes is available below

What you need to know, what you need to act on, and when.

The Hunter Employee Relations Monthly Review is a valuable resource informing senior management on Government workplace law changes, Fair Work Commission test cases and important decisions. It is published at the start of each month.

Annual Wage Review 2025

In June the Fair Work Commission Expert Panel awarded a 3.5% wage increase in the 2025 Annual Wage Review.

This increase is now payable at the Award rate. Employers need to review lower paid employees to ensure that they are paid at least at the Award rate of pay. Employers can absorb the 3.5% into any over Award payments.

The new National Minimum Wage is $948 per week or $24.95 per hour based on a 38-hour week. For casuals the minimum rate, including the casual loading, is $31.19 per hour.  

Employers with Enterprise Agreements should ensure their wage rates do not fall below the comparable Award rate for a classification.

To check the new minimum wage rates and changes to allowances in your Award please follow this link to the applicable Award.

Alternatively, these links from the Fair Work Ombudsman are also very helpful. Pay and Conditions Tool. Pay Guides for Modern Awards.

Superannuation – 12% - Commencing 1 July 2025

From 1 July 2025 employer superannuation payments on behalf of employees increased to 12%. This is the last legislated change to the contribution percentage. 

Other Changes from 1 July 2025

Fair Work Commission Application Fee  

From 1 July 2025 the application fee for employee applications to the Fair Work Commission (General Protections etc) has increased to $89.70.

High Income Threshold Increases

The high-income threshold in unfair dismissal cases will increase to $183,100. The compensation limit has also increased to $91,550.

Government Funded Paid Parental Leave & Superannuation Payments

From 1 July the Government funded paid parental scheme has increased to 42 weeks. This is part of the plan to progressively increase the paid scheme to 26 weeks from July 2026 providing  $24,000 in support following the birth or adoption of a child. More information.

From 1 July 2025 the ATO will make a 12% superannuation to someone who is being paid the Government funded paid parental leave. This will be paid at the end of the 2025-206 financial year.

New Statutory Tort of Privacy Under the Privacy Act 1988

Employers must protection their employee’s private information.

Employees now have access to take legal action under Tort law against their employer for serious breaches of privacy. Under this tort an employee’s privacy can be breached by misusing private information that relates to the individual or intruding into their private space – where there was a reasonable expectation of privacy in all the circumstances.

Key points about this privacy tort include:

• Action can commence within 3 years after the breach
• Action can only be taken for conduct that occurred post 10 June 2025 or within one year of the employee becoming aware of the breach.
• A Court can issue an injunction, correction Orders, make a declaration of a serious privacy breach or award compensation up to $478,550 damages for emotional distress.
• Employers have a number of defences available in response to these actions.

Employers and individuals face serious privacy breaches committed by their staff where surveillance, data access, or where internal communications involve a serious invasion of an employee’s privacy.

Think twice about putting out that empathic email (or talking to) to all staff explaining why Mary is on personal leave and wishing her all the best. This action could well trigger the above.

NSW Community Sector Portable Long Service Leave – Commenced 1 July

The Community Services Sector (Portable Long Service Leave Bill) (NSW) 2024, will commence on 1 July 2025.  The Act allows employees to accrue Long Service Leave working across the sector and not just with one employer.  Employees can now access 6.1 weeks long service leave after 7 years of service.

More information NSW Government Long Service Leave Corporation.

Gender Undervaluation Test Case Decision

Submissions and Conferences Underway to determine new classification structures and wage increases.

In April the Expert Fair Work Commission Panel has handed down an extensive decision in relation to the Gender Undervaluation Test Case finding that the classifications in the test case Awards have been the subject of gender-based undervaluation.

The Commission closely examined the following Awards to determine whether the work undertaken by employees (predominantly female) was undervalued.

• Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020
• Children’s Services Award 2010
• Health Professionals and Support Services Award 2020
• Pharmacy Industry Award 2020
• Social, Community, Home Care and Disability Services Industry Award

The parties to the proceedings are now providing submissions to the Commission Expert Panel to determine amendments to the above Award classification structures likely to result in wages increases spaced over a period of time.

Conferences are underway in relation to each of the above Awards. The timetable for Award changes is not clear at this stage.  At this point any changes will only affect the above listed Awards.

Working from Home Model Term - Clerks Private Sector Award 2020 

This matter concerns the insertion of a working from home clause in the Clerks Private Sector Award to support employers and employees making a workable arrangement. The Fair Work Commission requested Swinburne University to undertake a working from home research study. This has been published and is available here.

The Commission has requested parties to provide proposed Award variations and submissions buy 18 July 2025. Other parties may respond by 15 August. A Directions hearing has been scheduled for 22 August 2025.  There is no indication at this stage of when the changes will take affect in this Award.

Changes - Pending / Slow Progress

More information will be provided on these items in upcoming Employee Relations Updates if important progress is made.

Fair Work Act Changes to Prevent Reduction or Elimination of Penalty Rates

Following an employer application to amend the General Retail Industry Award the Federal Government has announced that it will amend the Fair Work Act 2009 to lock in penalty rates for evenings, weekends and public holidays.  This would prevent applications being made in the Fair Work Commission to vary industry Awards to remove such penalties.  This application is pending.

Junior Rates Review

The application seeks to remove 18 – 21-year-old wage rates and class them as adults receiving adult wage rates. (General Retail Industry Award 2020, Fast Food Industry Award 2020, Pharmacy Industry Award 2020).  Seventeen days of hearings have been scheduled for October and November 2025 to take further evidence.

ACTU Reproductive Health Leave Campaign

The ACTU has initiated a campaign to amend the National Employment Standards to provide for 10 days paid leave to allow employees to have time off and flexible work arrangements to deal with a range of reproductive health issues.  No further information has been released for some months.

Restrictions on Restraint Clauses in Employment Contracts

As announced in the budget and discussed during the recent election campaign the Federal Government intends to the amend the Fair Work Act 2009 to limit the enforcement of post-employment restraint clauses in employment contracts. The changes will affect new employment contracts entered into from 2027.

Payday Superannuation

The Government has now released draft legislation that will require all employee superannuation payments to be made on the same day as wages are paid to the employee. Contributions will need to arrive in an employee’s superannuation account within 7 calendar days. This change will commence 1 July 2026.

Useful Information

Wage Increase Data

The seasonally adjusted wage price index increase by 0.9% over the March quarter. This equates to a 12 month increase of 3.4%. The largest industry contributors to the quarterly wages growth were healthcare and social assistance (+1.4%) and Education and training (+1.3%).  Wages for employees on enterprise agreements rose by 3.8% over the year to March 2025.   ABS data

CPI Data

CPI data released by the ABS shows an annual rise of 2.1% in the 12 months to May 2025.

The annual CPI rose 2.4% in the year to the March quarter 2025.

Modern Awards List

Most employers will be aware of where to find the latest Modern Awards but just in case you’ve lost the link here it is.

A Useful NSW Government SafeWork Website

Links to Codes of Practice, Hazards, Resource Library, Video and Webinar Library, Podcasts, and Newsletters etc. Check it out here

A bit of workplace humour…..

A bonus for those of you who have read this far!

A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort.

Boss to employees: ‘We will continue to have these meetings every single day until I work out why no work is being done’!

My boss is very easy-going. He told me not to think of him as the boss, rather, think of him as a friend who is never wrong.”

He gave a great 10-minute business speech yesterday. The only problem was it took him an hour to deliver it.

A committee is a group of people who keep minutes but lose hours.

Kind Regards
Michael Schmidt
M 0438 129 728
[email protected]
www.hunteremployeerelations.com.au

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