A valuable resource informing senior management 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

Industrial Relations - Employment Law - Workplace Performance

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Upcoming Changes 

Post Election Potential Workplace Relations Changes

Time will tell whether the re-elected Federal Government will initiate a new range of employee friendly workplace entitlements. Key points from the Labor election campaign included: Time will tell whether the re-elected Federal Government will initiate a new range of employee friendly workplace entitlements.

Key points from the Labor election campaign included: 

• The adoption of the ACTU policy of uniform Long Service Leave entitlements – using the highest state entitlement as the baseline.
• The changes to employment contract restraint clauses – see below
• Superannuation payment contributions made each pay cycle.
• A national labour hire licencing scheme.
• A potential prohibition on working ‘excessive hours’.  (Undefined) 

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

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 follows an employer application to amend the General Retail Industry Award to introduce a voluntary exemption clause. The Award covers approximately 350,000 retail employees.

The variation was intended to apply to full or part-time employees classified at levels 4-8. Employees would be paid a flat 25% loading on all hours worked in lieu of various entitlements including penalty rates.

The Fair Work Act amendment would not prevent enterprise agreements that provide for loaded pay rates that replace separate penalties or contractual arrangements where loadings, penalties and overtime are covered by a higher over award rates of pay.

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

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 under evaluation.

This follows amendments to the Fair Work Act (Secure Jobs, Better Pay) providing for a greater focus on driving gender equity. 

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 will now work with the Commission Expert Panel to determine amendments to the Award classification structures likely to result in wages increases spaced over a period of time. In some of the Awards classifications structures are expected to be combined and re-written. By way of example the Commission is recommending the Pharmacy Award to increase wages by 14.1 percent over the next 3 years – in addition to wage increases resulting from the Annual Wage Review. 

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

Annual Wage Review 2024-2025

The Annual Wage Review Expert Panel has listed a consultation session on 21 May to review current research and data as it progresses the Annual Review process.

The ACTU is seeking a wage increase to minimum Award rates of 4.5% lifting the minimum wage to $25.18 per hour. The annual increase for a full-time employee will increase by $2143 to $49,770.

Increases at the Award rate are expected to affect approximately 2.6 million Australian employees.

The Annual Wage Review is expected to be handed down during June 2025 with increases to Award wages commencing from early July 2025.

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% 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.

Portable Long Service Leave - NSW Community Sector

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.

There are a number of exceptions including allowing extra time for new employees to be set up with the relevant superannuation account, out of cycle earnings and a number of exceptional circumstances such as natural disasters etc.
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.

While detailed information does not appear to be available at this stage the changes will not affect restraints against post-employment interactions with former clients. It is likely to limit clauses where former employers are restricted from poaching colleagues from their prior employer.

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.

An employer’s main concern in these situations is where former employees poach clients they had previously had a working relationship with. The Courts will generally enforce such contract restraint clauses for a limited period of time. The Courts will not enforce open geographic or time base clauses which prevent a former employee from earning a living unless they move to a different city or state.

We’ll provide you with more information on the changes when they become available.

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

Changes That 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.

New Model Terms for Enterprise Agreements

The decision covers the model terms relating to Consultation, Flexibility and Disputes. The model terms will operate for new enterprise agreements from 26 February 2025. Employers can access copies of the Model Terms here. 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

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

Wage Increase Data

The most 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

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.

A bit of workplace humour…..

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

“I choose a lazy person to do a hard job, because a lazy person will find an easy way to do it.” Bill Gates

“You don’t have to be crazy to get a job here - we’ll train you.”

“If you think you boss is stupid, remember you wouldn’t have a job here if he was any smarter.” John Gotti

“Most people work just hard enough not to get fired and get paid just enough money not to quit.” George Carlin
“Work would be so much fun – without all the work”

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.