Key Employment Law Changes | New Financial Year Update

The commencement of the new financial year has brought with it a number of important changes to national and Western Australian state minimum wages, unfair dismissal regulations, superannuation guarantee as well as changes as part of the Closing Loopholes Laws.?

In this article, Kate Walawski of Cullen Macleod, summarises the significant changes that all employers need to be aware of. It is critical that employers consider the implications of the changes and ensure that their businesses remain compliant with all statutory and regulatory obligations.?

Increase to Minimum Wage Rates for National System Employers

National Award Rates

On 1 July 2024, in accordance with the 2024 annual wage review decision of the Fair Work Commission, all minimum rates under modern awards increased by 3.75%.? Employers need to ensure that the employees’ first full pay period on or after 1 July 2024 gives effect to this increase.

National Minimum Rates

On 1 July 2024, the national minimum wage for adults working full time (38 hours per week) increased by 3.75% (or $33.10) per week from $882.80 to $915.90.

The national minimum hourly rate for permanent national system employees increased from $23.23 to $24.10 per hour.

We note however, that the casual loading for award/agreement free employees has remained set at 25 per cent consistent with the standard casual loading in all modern awards.

Please be aware that the changes as detailed above, apply to all employees employed by a national system employer, including junior employees, employees with a disability, employees to whom training arrangements apply and to piece rates.

We highly recommend that national system employers conduct a review of their current remuneration arrangements, including the use of annualised wage arrangements, to ensure regulatory compliance with the changes to the minimum wage rates.

High Income Threshold in the Federal Unfair Dismissal Jurisdiction

On 1 July 2024 the high-income threshold increased from $167,500 to $175,000.

The high-income threshold is relevant for the purposes of the operation and eligibility of employees to access a number of Fair Work Act 2009 (Cth) (FW Act) provisions, namely:

• for determining whether a federal system employee, not covered by a modern award or a statutory workplace agreement is a protected employee and has access to the federal unfair dismissal jurisdiction of the Fair Work Commission;
• for determining whether a modern award applies to an employee – specifically, a modern award (that would ordinarily apply) will not apply to an employee who has a guarantee of annual earnings above the high-income threshold.?? Please be aware however, that such an employee remains covered by the applicable award and is therefore, subject to meeting the other criteria, still able to access the protection of the unfair dismissal jurisdiction; and
• for determining the maximum compensation which is available to a successful applicant in an unfair dismissal claim. The maximum compensation has increased from $83,750 to $87,500 (half of the high-income threshold).

Please be aware that award-free employees who earn over the high-income threshold and are therefore jurisdictionally barred from commencing an unfair dismissal claim, may still have access to a number of other causes of action under the FW Act.

Western Australian State System Employers

For those state system employers in Western Australia, on 1 July 2024:

• all Western Australian State award rates of pay increased by 4%; and
• the state minimum wage for employees 21 and over increased by 6.3% to $918.60 per week (an increase of $55.20 per week).

Please note that the minimum rate for younger workers and award free trainees and apprentices also increased.

The new minimum State award rates were not available as at the date of this publication

We also note that the high-income threshold for employees in the Western Australian State- system accessing protection under the Industrial Relations Act 1979 (WA) has increased from $187,800 to $195,700.

Superannuation Guarantee Increase

On 1 July 2024 the superannuation guarantee increased, as planned, from 11% to 11.5%.

Employers who remunerate employees by reference to a superannuation-inclusive salary package should review their employment agreements to determine whether they are permitted to offset at least some of the cost of the increasing superannuation contributions by reducing the employees’ take-home pay.

Fair Work Information Statement

The Fair Work Commission has published the latest version of the Fair Work Information Statement which all employers must give to each new employee before (or as soon as practicable after) the employee starts his or her employment.

This may occur by any means, for example:

• giving it to the employee personally;
• sending it by pre-paid post to the employee’s residential address or a postal address nominated by the employee;
• sending it to the employee’s work email address or another email address nominated by the employee;
• providing the employee with an electronic link to the Fair Work Ombudsman website on which the Statement is located;
• having an electronic link that takes the employee directly to a copy of the Statement on the company intranet (if applicable); or
• sending it by facsimile to the employee.

?The latest version of the Statement which applies from 1 July 2024 can be found by clicking here.?

Please note that employers are not required to give the Statement to an employee more than once in a 12-month period. However, failure to provide a copy of the Statement to an employee is a breach of the National Employment Standards and employers risk the imposition of a civil penalty.

Casual Employment Information Statement

The latest version of the Fair Work Ombudsman’s Casual Employment Information Statemen is available by clicking here.?

The Casual Employment Information Statement informs employees about several matters, including:

• the definition of a casual employee;
• when an employer must offer casual conversion;
• when an employer is not obligated to offer casual conversion;
• when an employee can request casual conversion; and
• resolving disputes about casual conversion.

‘Closing Loopholes’ Laws

Commonwealth Industrial Manslaughter Offence

On 4 September 2023, the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 (Cth) was introduced to Parliament, and proposed a sweep of changes to the FW Act together with the Work Health and Safety Act 2011 (Cth) (WHS Act). One of the key work health and safety amendments was to criminalise industrial manslaughter at a federal level.

Consequently, the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 (Cth) amended the WHS Act to strengthen Commonwealth work health and safety offences and penalties by:

• introducing a Commonwealth industrial manslaughter offence;
• increasing penalties; and
• providing new criminal responsibility provisions for bodies corporate and the Commonwealth.

The industrial manslaughter offence for the Commonwealth work health and safety jurisdiction commenced on 1 July 2024?under a new section 30A of the WHS Act with penalties of?$18 million for a body corporate and 25 years imprisonment for an individual

New Rules for Right of Entry Permits

On 1 July 2024 new rules for right of entry permits and exemption certificates commenced.?

A right of entry exemption certificate will now allow a permit holder to forgo giving an employer the required notice of 24 hours for a permitted visit if they’re investigating a suspected breach of the FW Act or a related industrial instrument.

A certificate will be issued by the Fair Work Commission upon application by a union, waiving the 24-hour notice requirement for entry; however, the Commission will first need to be satisfied that the suspected contravention is an underpayment of a union member and it reasonably believes that advance notice of an entry would prevent the carrying out of an effective instigation into the underpayment contravention.

Additional Noteworthy Change

Employers should also be aware that the fixed term contract exceptions that were due to end on 1 July 2024 have been extended.

Significant reforms were introduced by the?Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022?(Cth) (Secure Jobs Better Pay Act), which received Royal Assent on 6 December 2022; specifically the Secure Jobs Better Pay Act introduced limitations that applied to fixed term contracts entered into on or after 6 December 2023.

However there were exceptions to the limitations to fixed term contracts entered into on or after 6?December 2023 which applied in certain circumstances. Whilst those exceptions were due to end on 1 July 2024, they have now been extended to various months in 2025.

Please contact our employment team directly regarding the specific exceptions.

What Should Employers Do Now?

It is important to remember that employers do not necessarily need to pass on wage increases to all employees. Where an employee is remunerated above the minimum wage rates, it may be possible for the increases to be absorbed without an employee’s wages actually increasing. However, it is critical that an audit is conducted to ensure that all wages and salaries are compliant with statutory obligations and to mitigate against the imposition of significant penalties for getting rates of pay wrong.

With the impending criminalization of wage underpayments, we encourage you to contact the team at Cullen Macleod who have expertise in navigating wage compliance matters.

Have questions about wage compliance or the impact of the looming criminalization of wage underpayments?

Contact Us

Kate Walawski - Principal, Employment + Safety

E: [email protected]

T: 08 9389 3999

Note: The above is a summary for general information purposes only. It is not intended to be comprehensive or constitute legal advice. You should seek formal legal or other professional advice in relation to your circumstances before relying on the content of this article.

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