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 its a good way to keep an eye on what’s happening.
Key items
• New casual employment laws apply from 26 February 2025 for small business
• A tougher approach to underpayments of wages commenced 1 January 2025
• NSW Government portable long service leave changes for Community Service Employees
Kind Regards
Michael Schmidt
Hunter Employee Relations
M 0438 129 728
Who is Hunter Employee Relations?
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Upcoming Changes
Working from Home Model Term - Clerks Private Sector Award 2020
An outcome of the Modern Awards Review 2023-2024 is the Fair Work Commission initiating its own motion to review the Clerks Private Sector Award for the purpose of inserting a working from home term ‘supporting’ employers and employees making a workable arrangement.
The Fair Work Commission Full Bench has requested submissions by late May 2025 with hearings being programmed on 6 June 2025.
Employer Action: No employer action is required at this time. Any changes resulting changes to this Award are likely to flow on to other Awards or may be initiated through changes to the Fair Work Act 2009 which then apply to all employees – Award or not.
Working from home requests may currently be made under the Flexibility Provisions in the Fair Work Act 2009. Hunter ER Update - When Can Employees Demand Flexible Working Hours
Gender Undervaluation Test Case
The Fair Work Commission has initiated a test case examining the following Awards
- 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 case is examining a large number of issues centred around whether the work covered by the classifications in these Awards has been historically undervalued because of assumptions based on gender.
Formal hearings examining each of the Awards took place in December. No further progress has been noted by the Fair Work Commission at this stage.
Outcomes and flow on implications from this test case are unclear. There is a potential for any outcome to be replicated in other Awards or industry sectors with predominant female employment.
Employer Action: No action is required by employers at this time.
Junior Rates Review
The SDA has applied to change the minimum wage rates in the following Awards.
- General Retail Industry Award 2020
- Fast Food Industry Award 2020
- Pharmacy Industry Award 2020
The application seeks to remove 18 – 21-year-old wage rate and classing them as adults receiving adult wage rates.
Submissions are currently being received with a Directions hearing scheduled for 10 June 2025 which is likely to set formal hearing dates.
Employer Action: No action is required by employers at this time. While these changes may only affect the above listed Awards there is a reasonable likelihood that this will flow on to other Awards.
Annual Wage Review 2024-2025
The process for the 2024-2025 Annual Wage Review has been initiated by Fair Work Commission President releasing the timetable for Submissions and research related to the next annual wage review.
The Annual Wage Review is expected to be handed down during June 2025 with Award wage increases commencing from early July 2025.
The Fair Work Commission has published several studies largely focussed on employees paid at or close to the Award rate of pay. More information can be accessed here.
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.
Social, Community, Home Care and Disability Services Industry Award 2010
Hearings and submissions are continuing before Vice President Gibian of the Fair Work Commission in relation to three related applications. These matters relate to coverage of Therapeutic Carers, sleepover arrangements, 24 hours care, rest breaks between work, overtime and penalty rates. Hearings are currently underway and the matter appears to be extensive. Please contact Michael if you require more information on this matter.
Superannuation – 12% 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.
The Government has also announced changes that will require all employee superannuation payments to be made on the same day as wages are paid to the employee. This change will commence 1 July 2026. More information.
Employer Action: These changes will affect all employers making the SGC Superannuation contributions on behalf of their employees.
Part-time Employment Review
The Fair Work Commission has foreshadowed it will review Award part-time employment provisions as an outcome of the Modern Awards Review 2023-2024. The test case is likely to be initiated early in 2025.
Once this matter has been determined via a test case it is likely to flow to other Awards later in 2025. There is some potential for it to flow on to non-Award employees via a change in the Fair Work Act meaning it will cover all part-time positions.
Employer Action: no employer action required at this time.
Workplace Gender Equality Amendment (Setting Gender Equality Targets) Bill 2024
The Government has introduced a new Bill to Federal Parliament to amend the Workplace Gender Equality Act 2012 focused on establishing Gender targets in workplaces. Failure to achieve the targets may impact a business’s ability to obtain Government work as well as being publicly named by WEGA (the Workplace Gender Equality Agency).
The changes will require employers with more than 100 employees to provide a range of information related to workforce gender balance, gendered remuneration, flexible working arrangements and sexual harassment.
Employer Action: Action is only required where a business employs more than 100 employees. Other employers can ignore this change at this time. More 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.
Reproductive health issues include menstruation, pregnancy, contraception, miscarriage, perimenopause, menopause, chronic conditions such as poly-cystic ovarian syndrome and endometriosis, hormone therapy and fertility issues, as well as vasectomy, hysterectomy, terminations, and breast and prostate cancer screenings.
In October 2024 the previous labour government provided public sector employees in Queensland with 10 days paid reproductive leave.
An interim study report commissioned through the Curtain University Economics Centre estimated the lack of such an entitlement cost the economy $26.55 billion annually due to absenteeism and loss of productivity at work. The cost of the scheme as a universal entitlement was estimated at $920million per year.
Employer Action: no employer action required at this time. How this matter proceeds will likely be determined by the outcome of the Federal election. If the current Government is retained and has the numbers, there could be a legislative change to the Fair Work Act 2009.
Changes Partially Implemented
Right to Disconnect
Changes to the Fair Work Act 2009 have created a formal right to disconnect from work outside of their usual work hours. These changes have now been inserted into all Modern Awards. Applies to Award and non-Award casual employees. Employers should check their applicable Award. As it is a term of the Fair Work Act it also affects non-Award employees. See Hunter ER Update - Right to Disconnect From Work After Hours
Employer Action: For small employers the changes will commence from 26 August 2025. This change became operative from 26 August 2024 for all other employers.
Changes That Have Commenced
Casual Employment Changes - Now Commenced for Small Employers
• Casual Definition
• Casual Conversion
• Information Statement
The Fair Work Act 2009 has been changed to provide for a new casual definition based on a ‘firm advance commitment to continuing and indefinite work’.
Secondly the new casual conversion process allows employees to request conversion to permanent full time or part time employment.
Employers must provide the Casual Employee Information Statement to all casual employees at specific points in time.
Employer Action: The changes will apply to smaller employers from 26 February 2025.The changes commenced 26 August 2024 for larger employers. Further transition dates apply.
Please email Michael to request a copy of the Hunter ER - Casual Employment Employer Guidelines to be sent to you.
New Model Terms for Enterprise Agreements
Following an extensive consultation process a Full Bench of the Fair Work Commission has handed down a decision on the new Model Terms for Enterprise Agreements on 20 February 2025.
The decision covers the following model terms
• Consultation
• Flexibility
• Disputes
Employers seeking copies of the Model Terms here
While there are some changes, they are less extensive than originally expected and largely reflect the current model terms.
Employer Action: The decision states the model terms will operate for new enterprise agreements from 26 February 2025. It is unclear how Agreements going through the voting and submission process, who do not have the new model terms, will be dealt with.
Review of Entry Level C13 and C14 Wage Rates
The Fair Work Commission has reviewed the C13 and C14 Wage rates in Modern Awards. The original C13 and C14 rates were set in the Metal Industry Award (now called the Manufacturing and Associated Industries and Occupations Award 2020) review in the 1990s. Multiple Awards have a C14 equivalent entry level rate but no clear transition to level C13. This application provided transition guidelines and timeframes.
Employer Action: Award changes commenced from 1 January 2025. Employers should review their applicable Award to determine the impact of these changes at the lower classification levels.
Criminalising Wage Underpayments
Where an employer intentionally engages in paying an employee incorrectly this will now be classed as a criminal offence. The legislative changes provide for very large penalty payments and or prison sentences up to a maximum of 10 years.
Small business employers can’t be referred for criminal prosecution if they have complied with the Voluntary Small Business Wage Compliance Code.
Employer Action: This change became effective from 1 January 2025 for all employers.
While we understand that most employers do not intentionally underpay employees there can be substantial cash flow issues if you are required to make back payments for up to 7 years for affected employees due to an error. It is recommended you arrange a desktop audit on current payroll practices to ensure you are not accumulating a large future underpayment debt.
Hunter ER Update: Wage Theft – A New Label for Payroll Errors
Labour Hire - Regulated Labour Hire Arrangements Orders
From 1 November 2024 the Fair Work Commission commenced making Orders for labour hire workers to be paid the same rate of pay (‘protected rate of pay’) that is paid to the staff who are directly employed and undertaking the same work. It is important to note this applies to supplying labour and not to supplying services.
Employer Action: This change commenced on 1 November 2024. Employers who engage labour hire on the same rate of pay as their directly employed employees do not have to take action. Those who pay labour hire less than directly employed persons may be required to pay the same through a Fair Work Commission Order. Orders are usually initiated by a union. More information Labour Hire Workers – Equal Pay Rules
Independent Contractor Rights Under the Fair Work Act
As of 26 August 2024, new protections commenced for independent contractors (non-employees) in relation to alleged unfair contracts.
The changes give the Fair Work Commission, which has traditionally been concerned with the employee – employer relationship, a new jurisdiction for dealing with contractor disputes between principals and independent contractors. Independent contractors who earn below $175000 per annum are able to apply to the Commission to vary or set aside all or part of a contract if it is deemed unfair.
Employer Action: Business who engage independent contractors need to ensure the independent contract is compliant in relation to the specific principles the Commission would examine. (Please contact Michael if you required more detail or guidance on this issue).
Portable Long Service Leave - NSW Community Sector
The Community Services Sector (Portable Long Service Leave Bill) (NSW) 2024, commenced 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.
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.
More information NSW Government Long Service Leave Corporation.
Useful Information
'The Future of Work' Report Released
On 11 February 2025 the House of Representatives Standing Committee on Employment, Education, and Training tabled its The Future of Work report today following its inquiry into the digital transformation of workplaces.
In a media release it stated: ‘While AI and ADM can create opportunities for workplaces such as increased productivity and efficiency, and job creation and augmentation, these benefits need to be shared between employers and workers,’ The Committee’s report, including the 21 recommendations, can be accessed here.
Union Membership Grows
An ACTU media release (27 February 2025) has stated union membership numbers have increased by almost 200,000 from 2022 to 2024 with most growth occurring in the younger age groups. Workforce union density has increased 12.5% to 13.1%. It does not distinguish between private and the public sector which has traditionally had a higher density percentage. Women make up the majority of union members at 54.1%
Wage Increase Data
Recently released ABS data indicates wages growth of 0.7% in the December 2024 quarter resulting in a 3.2% increase over the previous year. This is a reduction from 3.6% from the previous reporting period. With inflation at 2.4% this indicates an (average) real wages increase of 0.8%.
CPI Data - January 2025
On 26 February 2025 the ABS published the January CPI indicator showing an increase of 2.5% for the previous 12 months.
A bit of workplace humour….. '
For those of you who have read this far!
Nicknames for Coworkers
• KitKat – always having a break
• Butter Knife – not the sharpest knife in the box
• Justin – does justinuff not to get fired
• Motion Light – only works when someone walks by
• Lava Lamp – looks good but not very bright
• Dr. Do Little – does it need an explanation?
• G Spot – can never be found!
• ET – just wants to go home
Who do you recognise! ????
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.
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