1 July here we come - what you need to know

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Earlier this month, we published an update in respect of the outcome of the Fair Work Commission’s Annual Wage Review and impending superannuation guarantee changes.

Whilst these are no doubt the most significant of the upcoming changes for employers to be aware of, 1 July presents additional further considerations for business in the people space.

The additional changes that are likely to matter most to employers are set out in this further blog post.

1 High income threshold

The high income threshold will increase from $158,500 to $162,000 from 1 July 2022. This means that, from 1 July 2022:

  • if an employee is not covered by a modern award, or if an enterprise agreement does not apply to them, they will not be eligible to bring an unfair dismissal claim if their earnings exceed the new high income threshold; and

  • the compensation limit for unfair dismissal claims will be $81,000.

2 Award changes

In addition to changes arising from the Annual Wage Review, employers in certain industries will also need to grapple with new award changes.  The most recent and significant of these changes (some of which have already taken effect) include:

  • Changes to part time and casual employment under the Social, Community, Home Care and Disability Services Industry Award, as well as to certain allowances and overtime rates.

  • The introduction of annualised salary provisions for certain classifications in the Health Professionals and Support Services Award, and changes to annualised salary provisions under other awards.

  • Ongoing consideration of the work value case in aged care.

3 Labor’s proposed workplace changes

Part of Labor’s election policies in the recent election included a renewed focus on job security and insecure work (such as for workers in the “gig economy”).

Some of these changes are expected to take effect relatively quickly, as part of the agenda of Prime Minister Albanese’s new government.

Some of the most recent and significant of these proposals include:

  • Changes to the definition of a casual employee.

  • Slated further changes to the labour hire or on-hire space.

  • Restrictions on employers engaging employees on “rolling” fixed term contracts.

  • Potential enterprise bargaining reforms.

  • Changes to the National Employment Standards, including in respect of superannuation (which will greatly change the enforcement mechanisms for recovering unpaid superannuation) and family and domestic violence leave.

4 Fair Work Information Statement

The Fair Work Ombudsman has issued an updated Fair Work Information Statement which should be given to each new employee before, or as soon as possible after, they start employment.

Are you unsure about how these changes might impact your business? The Workplace can assist with all of your employment related needs, whether related to the above changes or otherwise.

Please give us a call on 02 8999 3300 or email hannah@theworkplace.com.au or alina@theworkplace.com.au for assistance.

The copyright in this blog is owned by The Workplace – Employment Lawyers Pty Ltd.  The content is general information only and is not intended to constitute, or be relied upon as, legal advice.  The use of this blog by any person or company does not create any solicitor-client relationship between the person or company and The Workplace – Employment Lawyers Pty Ltd.