A valuable resource informing senior management

• what you need to know as an employer,
• what you need to act on,
• and when.

A monthly update on Government workplace law changes, Fair Work Commission test cases and important decisions.

Please note this is a high-level summary review only. If you wish to discuss a particular workplace matter related to these changes, or are seeking more information, please do not hesitate to contact me. I suggest you scan read the following and read only those sections that apply to your business. Unfortunately, ‘Ignorance of the law is no excuse’ so it’s a good way to keep an eye on what’s happening.

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

Guiding senior managers through complex employee relations issues

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Upcoming Changes

Annual Wage Review 2025 - 3.5% Increase 

The Fair Work Commission Expert Panel has awarded a 3.5% wage increase in the 2025 Annual Wage Review handed down this morning. The 3.5% increase was to compensate for real wages declined of 4.5% over the last several years due to inflation. The Panel stated that 20% of Australia’s employees are paid at the Award rate of pay and they make up 10.5% of the nation’s wage bill.

The 3.5% increase affects only those employees paid at the Award level. Employers need to review lower paid employees to ensure that they are paid at least at the Award rate of pay. Individual Award wage rates will be varied over the coming weeks. They can be checked here

The ACTU was seeking a wage increase to minimum Award rates of 4.5% while employer groups were advocating for increases nearer to the current CPI rate of 2.4%.

Employer Action: Employers will need to adjust employees paid on the Award rate to at least the new notified hourly wage rate from the prescribed date in July 2025. This will not affect employers who are paying above the new Award rate of pay.

Superannuation – 12% - Commencing 1 July 2025

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

Employer Action: These changes will affect all employers making the SGC Superannuation contributions on behalf of their employees. 

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.

Employer action:  This change is focussed on retaining the status quo. Employers can still negotiate alternatives around this through an enterprise agreement provided they meet the BOOT test during the Fair Work Commission approval process. 

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.

A conference will take place in Sydney on 4 June to discuss variations to the Social, Community, Home Care and Disability Services Industry Award. A second conference on this Award is scheduled to take place in Melbourne on 17 June 2025.  A similar conference is scheduled for the Children’s Services Award on 10 June.

Employer Action: Employers covered by the above Awards will need to keep a close eye on upcoming proceedings which are likely to amend the Award classification structure as well as determine the timing and magnitude of wage increases.

Portable Long Service Leave - NSW Community Sector – Commencing 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.

The definition of Community services include the following services – disability support, foster care, homelessness support, out of home care and youth support.  The portable long service leave scheme applies to all positions of that employer. Employers will pay a levy based on wages and the employee will be paid from accumulated funds. 

More information NSW Government Long Service Leave Corporation.

Employer Action: Employers in the Community Sector should check the details of the Act as it applies to them. The National Employment Standards refer to the applicable Long Service Leave Act operating at a state level. It applies to Award and non-Award employees.

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.

More information – ATO superannuation and Treasury Fact Sheet

Employer Action: This will affect all employers making the SGC Superannuation contributions on behalf of their employees. 

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 and affect only contracts below the high-income threshold which currently stands at $175,000pa.

Employer action:  While no immediate action is required as we do yet know the details of these changes, employers are urged to review their restraint clauses for key staff to maximise their compliance with current Court judgements.

Changes - Pending / Slow Progress

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

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 Commission issued a formal statement outlining research underway to gather quality quantitative information about working from home arrangements. See the March edition of the Hunter Employee Relations Review for latest information.

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. See the March edition of the Hunter Employee Relations Review for latest information.

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. See the March edition of Hunter Employee Relations Review the for latest information.

Changes Which Have Commenced

Workplace Gender Equality Act 2012 - Amendment

The Act was amended on 26 March 2025 and now requires employers with over 500 employees to select and achieve/make progress on equality targets. Overview information – WEGA Media Release. See the April edition of the Hunter Employee Relations Review for more information.

Casual Employment Changes

• Casual Definition - a ‘firm advance commitment to continuing and indefinite work’.
• Casual Conversion - allows employees to request conversion to permanent
• Casual Information Statement – must be provided to casual employees at specific points in time.

The changes will apply to smaller employers from 26 February 2025.The changes commenced 26 August 2024 for larger employers. More information. 

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

In the 12 months to February 2025, the monthly CPI indicator rose 2.4 per cent, after holding steady at 2.5 per cent for the previous two months.

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!

I don’t mind coming to work, it’s the eight-hour wait to go home that’s a bother.

Teamwork is important; it allows you to put the blame on someone else.

How do you know if a meeting is well-organized? There are multiple escape routes.

How many programmers does it take to change a light bulb? None, that’s a hardware problem.

I told my boss three companies were after me and I needed a raise to stay. He asked which companies, and I said, “Gas, Electric, and Cable.”

Disclaimer
The above information articles are general in nature and do not constitute advice. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.  Should you require advice or guidance in relation to any of the above (or other employee relations topics) please contact Michael Schmidt to discuss your particular circumstances.