As we approach the second half of the year, we are seeing a continuation of the Fair Work changes that kicked off 2023.

This alert will highlight the following:

• Minimum wage and superannuation increase
• Changes to shutdown provisions
• Training obligations specifically regarding policies and procedures

Minimum wage increase:

• Starting from July 1, 2023, the national minimum wage will experience a 5.75% increase, reaching $882.80 per week or $23.23 per hour.
• The new minimum wage will apply from the first full pay period starting on or after 1 July 2023.

Superannuation increase:

• As of 1 July 2023, the superannuation guarantee rate will increase from 10.5% to 11%

https://www.fairwork.gov.au/newsroom/news/awr-2023

Shutdown provision changes:

Starting from May 1, 2023, a total of 78 awards have implemented updated rules on taking annual leave during a shutdown. Employers cannot require an employee to take unpaid leave without agreement.

• Employers can ask their employees to use their paid annual leave when there is a temporary shutdown.
• Employers must give a written notice of at least 28 days to all affected employees before the shutdown starts.
• The requirement to take annual leave should be fair and reasonable.
• The notice period can be shorter if the employer and most of the affected employees agree.
• If an employee doesn’t have enough paid annual leave for the entire shutdown, they can talk to their employer about other options for the remaining days, like using their saved time off, taking advance annual leave, or taking unpaid leave.
• If there are public holidays during the shutdown that the employee would normally work, they will still be paid for those days.

78 Awards affected (https://www.fairwork.gov.au/newsroom/news/new-shutdown-rules-for-awards)

Other areas of change to be aware of – Secure Jobs, Better Pay: 6 June changes to workplace laws (https://www.fairwork.gov.au/newsroom/news/awr-2023):

• requesting flexible working arrangements
• extending unpaid parental leave
• agreement-making
• bargaining.

Importance of Training

In the ever-evolving field of HR (Human Resources), it is crucial to have clear and easily understandable policies, procedures, and proper training in place. The Australian HR Institute (https://www.hrmonline.com.au/section/legal/legal-changes-impact-employment-law-2023/#msdynttrid=qBxOUMQqYHX5SrTPxPCPvzsXv4-Bq3ObGe6gusp_wVw) recognizes the importance of training, particularly in light of the recent changes introduced by the Respect@Work Bill. This bill imposes a responsibility on employers to actively eliminate sex discrimination and harassment in the workplace. Furthermore, there have been instances where unfair dismissal cases were overturned by the Fair Work Commission due to deficiencies in policies and training. These examples emphasize the significance of having comprehensive policies and effective training programs to ensure that your people are aware of the policies in place and their responsibilities.

Recent FWC cases:

• The Fair Work Commission (FWC) reinstated an employee because they found that the workplace policy that the employee had violated was not clear or easily understood.https://www.hrmonline.com.au/section/legal/employee-reinstated-fwc-unclear-workplace-policy/
• The Fair Work Commission (FWC) decided to reinstate an employee even though they had made an offensive post on social media. The reason for this decision was that the FWC determined that the training provided regarding the company’s policy was not thorough or effective enough. https://www.hrmonline.com.au/employment-law/employee-reinstated-offensive-social-media-post/#msdynttrid=tpQTmQSHmqYQrkXmkTLd2d06_DUr-wBxjFquszOE1ds 

Overall, it is crucial for businesses to understand the importance of comprehensive and easily understood policies and procedures. Contact us if you need any further information or assistance in any of the areas above.