There have been some significant changes to Fair Work laws that have the potential to affect your organisation’s policies and procedures as well as employment contracts with your staff. Any delays in implementing these changes could mean you are non-compliant and placing your organisation in a vulnerable position with the Fair Work Commission.
Your employees now have the freedom to discuss their pay rate (and details such as hours of employment and bonus payments) with others. If this occurs at your workplace, you cannot take any adverse action against staff if they share this information. Adverse action includes things like disciplinary action, demotion or termination.
As an employer, there are significant penalties if you continue to insist on pay secrecy between staff.
Changes you need to make:
a) For existing contracts, any conditions that prohibit employees from disclosing their remuneration and other related terms cannot be enforced
b) For new employment contracts, it is an offence to include clauses that require pay secrecy
Managing staff and ensuring compliance are complicated!
For specific assistance in how these changes will affect your business, please contact us on 02 8977 4002. If you would like to look up the changes for yourself, the legislation is called Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022.
These changes to the Fair Work Act are significant and need to be actioned now if you wish to remain compliant. Don’t delay. For help, get in touch with End2end Business Solutions – your friendly, practical and knowledgeable HR team.