With several significant changes coming into effect this month and in the months to follow, here is a brief rundown with handy links to help you stay informed on changing requirements.
In effect from 1 July 2024
Minimum wage increase: The National Minimum Wage has increased by 3.75% to $915.90 per week or $24.10 per hour to be applied from the first full pay period starting on or after 1 July 2024. For more information, visit https://www.fairwork.gov.au/newsroom/media-releases/2024-media-releases/july-2024/20240701/new-minimum-wage-takes-effect-media-release-awr-2024.
Increased superannuation guarantee: The superannuation guarantee has increased by 0.5% in FY 24/25 to 11.50%, with employers required to cover the increase. For more information, visit https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/super-guarantee.
Union right of entry (additional ground added): The Fair Work Commission may now issue an exemption certificate allowing an entry permit holder to enter a business without prior notice when investigating suspicion of wage underpayment.
Alongside existing grounds, the Commission can issue a certificate if:
- the suspected contravention involves the underpayment of wages to a member of the union who works on the premises
- the Commission reasonably believes that advance notice of the entry would hinder an effective investigation.
For more information, visit https://www.fwc.gov.au/documents/resources/right-of-entry-changes-exemption-certificates-suspected-underpayments.pdf.
In effect from 26 August 2024
Right to disconnect (non-small business employers): The right to disconnect will come into effect for non-small business employers on 26 August 2024, giving eligible employees the right to refuse contact outside of working hours. For more information, visit https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes/right-to-disconnect.
Note: This change will not come into effect for small business employers until 26 August 2025.
Changes to casual employee definition: A new definition of ‘casual’ will be introduced.
From this date, an employee is only a casual if:
- there isn’t a firm advance commitment to continuing and indefinite work, taking into account a number of factors, including the real substance, practical reality and true nature of the employment relationship
- they’re entitled to receive a casual loading or specific casual pay rate.
New pathway to permanent employee: A new pathway will be introduced to move casual employees to permanent from the same date. Employees will be able to notify their employer that they intend to change to permanent employee status if they:
- have been employed for at least 6 months (or 12 months in a small business)
- believe they no longer meet casual requirements under the new definition, which is taking effect on the same day.
These changes may well impact your workforce, so please visit https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes/casual-employment-changes#casual-to-permanent to learn more.
In effect from 1 November 2024
Protected pay rates (same job, same pay): A raft of changes is set to come into effect with the Fair Work Commission able to make orders on behalf of employees, unions and hosts to ensure labour hire employees receive the same pay rate that they would receive if they were on the host’s enterprise agreement.
This is an important change for National Workforce employers, so please visit https://www.fairwork.gov.au/find-help-for/labour-hire-and-supply-chains/protected-pay-rates-for-labour-hire-employees to stay up to date.
In effect from 1 January 2025
Wage theft reforms: These reforms will see intentional underpayment of wages become a criminal offence, where employers:
- are required to pay an amount to an employee (such as wages), or on behalf of or for the benefit of an employee (such as superannuation) under the Fair Work Act, or an industrial instrument
- intentionally engage in conduct that results in their failure to pay those amounts to or for the employee on or before the day they’re due to be paid.
Questions? Your first port of call for the latest information is the Fair Work Commission website at www.fairwork.gov.au. Contact National Workforce to find out how we can help you to keep your workforce thriving.
