The Fair Work Commission (FWC) in Australia has introduced several changes affecting various aspects of employment regulations. Here are the key updates:
- Minimum Wage Increase: The FWC has announced an increase in the national minimum wage to $915.90 per week or $24.10 per hour. The increase applies from the first full pay period on or after 1 July 2024. Other award wages, including junior, apprentice and supported wages that are based on adult minimum wages, also get a proportionate increase.
- Award Wage Adjustments: Alongside the minimum wage increase, award wages have also been adjusted. Employers must ensure that they are paying their employees according to the updated award rates. The award minimum wages increase is 3.75% and applies from the first full pay period on or after 1 July 2024.
- Casual Conversion: Changes to casual employment laws mean that casual employees who have been employed for at least 12 months and have worked a regular pattern of hours for the last 6 months may request to convert to full-time or part-time employment.
- Family and Domestic Violence Leave: Employees (including casuals) are now entitled to 10 days of paid family and domestic violence leave per year. This is aimed at providing support to those experiencing such situations.
- Sexual Harassment Protections: Strengthened protections against sexual harassment in the workplace have been introduced. Employers are required to take proactive steps to prevent and address sexual harassment.
- Flexible Working Arrangements: The criteria for requesting flexible working arrangements have been broadened. Employees with caring responsibilities, those over 55, or those experiencing family violence can request flexible working arrangements.
- Redundancy and Termination: Changes have been made to redundancy entitlements and termination procedures to provide better clarity and fairness for both employers and employees.
- Superannuation: The Superannuation Guarantee (SG) rate has increased to 11.5% from 1 July 2024. Employers must ensure that they are contributing the correct amount to their employees’ superannuation funds.
- Enterprise Bargaining: New measures have been introduced to streamline the enterprise bargaining process, making it easier for employers and employees to negotiate agreements.
- Unpaid Parental Leave: Enhancements to parental leave entitlements include increased flexibility and extended periods of unpaid parental leave for eligible employees. The number of Parental Leave Pay days available increased on 1 July 2024. For a child who is born or entered into the parents care from 1 July 2024 can get either: 110 Parental Leave Pay days or 22 weeks based on a 5-day work week.
- The Australian government recently announcement it will pay superannuation on the government-funded Paid Parental Leave (PPL) which will be administered by the ATO. This measure is not yet law, however once passed will come into effect from 1 July 2025.
- Another government announcement relates to payday super. From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages. Again, this measure is not yet law.
Employers should review these changes carefully and update their policies and procedures to ensure compliance with the new regulations. It may also be beneficial to seek advice from a legal or HR professional to navigate these changes effectively.
Sonya Farrawell, My CPE CEO