Six-Question Checklist Before Issuing EOFY 2024 Pay Rises
Scott McSwan
Legal Practice Director at WorkLegal employment lawyers: [email protected]
Offering pay rises is usually the most strategic time of year for reviewing your employment contracts.
Questions that employers need to ask before 30 June about their employment contracts are.
Are all employment contracts signed?
If not, it can sometimes be appropriate to offer the next pay rise conditional upon the contract first being signed and returned.
Are employment contracts current with the ‘Closing the Loopholes’ changes?
The ‘Closing the Loopholes’ changes include:
Pay secrecy:??It is now unlawful to enforce a pay secrecy clause or introduce a pay secrecy clause. ?Employment contracts should be updated by removing them.
Fixed term contracts: ?There are new limits on fixed term contracts. ?Also a ‘Fixed Term Contract Information Statement’ must now be provided.
Casual employment: ?A new definition of ‘casual employee’ commences on 26th August 2024. ?Also the ‘Casual Work Information Statement’ will be updated. ?See our article for more information.
Contracting: ?A definition of employment commences on 26th August 2024 to reverse the impacts of recent High Court cases, which may increase the risk of breaching sham contracting laws. ?See our article for more information.
Regulating labour hire:??New laws allow an application to be made to the Fair Work Commission for an order that labour hire workers must receive the same pay as a host company’s employees, if some criteria are met. ?Orders can have effect from 2 November 2024. ?See our article for more information.
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Are any post-employment restraint and confidentiality clauses still suitable?
A post-employment restraint clause is only enforceable if it is a legitimate protection for the business’s interests, and should be checked and amended for suitability. ?Confidentiality clauses should also be checked to ensure that they identify the key information that the company wants to protect as confidential.
Has the rise in the minimum wage and modern award pay rates been considered?
In a recent article we explained the rise in the?minimum wage and modern award rates after 30 June 2024?and what employers need to do.
Are wage theft risks being managed?
Underpaying wages risks significant penalties and in the most serious cases can even result in imprisonment. ?To help to manage those risks do your employment contracts:
What about a right to disconnect?
The new right to disconnect laws start on 26th August 2024. ?Do your employment contract terms state if out-of-hours work is expected and compensated for by the remuneration arrangements? ?See our article for more information.
At WorkLegal our experienced team can answer your questions and put you on the right track. ?A range of fixed-price Initial Consultations will suit most people’s needs in quickly learning what their options are.
Some?more information is available here?or you can?book online for an initial no-obligation chat?about reviewing an employment contract or contractor agreement.