Littler Global Guide - Australia - Q3 2022

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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2022 Minimum Wage Increases

New Order or Decree

Author: Naomi Seddon, Shareholder – Littler

The national minimum wage increased on July 1, 2022, by 5.2% to $21.38 per hour or $812 per week. The Fair Work Commission also announced an increase to modern award minimum wages but decided to implement a proportionately higher increase for low-paid employees. Additionally, modern award minimum wages increased by at least 4.6%, subject to a minimum increase for adult award classifications of AU$40 per week. This means that modern award rates above AU$869.60 per week have received a 4.6% increase, while wage rates currently below AU$869.60 per week have received an AU$40 per week increase. The new rates have all now taken effect, with some rates increasing effective July 1 and others October 1.

2022 Changes to Superannuation Contribution Rates

New Order or Decree

Author: Naomi Seddon, Shareholder – Littler

The superannuation contribution rate in Australia has increased effective July 1, 2022, to 10.5%. The rate will continue to progressively increase annually by 0.5% until July 2025 when the rate will reach 12%. The $450 monthly eligibility threshold that previously existed to qualify for superannuation contributions has also now been abolished, meaning that employees can be eligible for superannuation payments regardless of how much they earn.

Government Introduces Respect @ Work Legislation

Proposed Bill or Initiative

Author: Naomi Seddon, Shareholder – Littler

On September 27, the Australian Federal Government introduced legislation that implements an additional seven of the Sex Discrimination Commissioner’s 2020 Respect @ Work Report recommendations, including a positive duty for employers to prevent workplace sex discrimination, harassment, and victimization. The proposed changes also include an amendment to the Australian Human Rights Commission’s powers to enforce compliance by conducting inquiries, making recommendations to achieve compliance, giving compliance notices specifying actions to address noncompliance, applying to the courts for an auditor to direct compliance with notices and a power to enter into enforceable undertakings. Both the states of the Northern Territory and Victoria have also proposed changes to their anti-discrimination legislation to impose similar positive requirements for employers to eliminate discrimination, harassment and victimization.

Legislative Proposal to Provide Paid Family and Domestic Violence Leave

Proposed Bill or Initiative

Author: Naomi Seddon, Shareholder – Littler

The Government has adopted the Fair Work Commission’s proposed amendment to legislation to introduce 10 days paid family and domestic violence leave, while it is separately pushing ahead with ratifying the ILO Convention Concerning Minimum Age for Admission to Employment, 1973 (No. 138). Ratification of the convention is part of the National Action Plan to Combat Modern Slavery 2020-25.

Jobs Summit Signals IR Changes on the Way

Proposed Bill or Initiative

Author: Naomi Seddon, Shareholder – Littler

On September 1 and 2, 2022, a Jobs and Skills Summit was held in Australia, which provided some detail for the employment and workplace relations changes that we can expect from the newly elected government.

Workplace Relations Minister Tony Burke has indicated that the government’s planned amendments include the following: (i) improving access to flexible working arrangements and unpaid parental leave; (ii) increasing protections for workers against adverse action, discrimination and harassment; (iii) ensuring that workers and employers can negotiate agreements in good faith, extending to small businesses, women in the care and community services sectors, and Indigenous people; (iv) making sure workers and businesses have “flexible options” for reaching agreements, including removing “unnecessary limitations” on access to single and multiemployer agreements; (v) allowing employers and workers who already successfully negotiate enterprise agreements to continue to do so; (vi) removing unnecessary complexity, including making the better-off overall test simple, flexible and fair; (vii) giving the Fair Work Commission the capacity to proactively help workers and employers reach agreements that benefit them, particularly new entrants and small and medium businesses; (viii) providing proper support for employer bargaining representatives and union delegates; and (ix) ensuring the process for agreement terminations is “fit for purpose” and fair, while providing for the “sunsetting” of enterprise agreements that have passed their nominal expiry date, but which remain preserved by law.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.