Important HR Updates - July 2024
Changes effective 1 July 2024
There’s a lot of changes in the employment space happening and it’s no different this financial year. From 1 July:
- The National Minimum Wage increases to $915.90 per week or $24.10 per hour.[1]
- Award Minimum Wages increase by 75%.[2]
- An increase to Parental Leave Pay to 22 weeks, which will increase again next year.[3]
- High-income threshold
An increase to the high-income threshold to $175,000. High income thresholds are relevant in instances of unfair dismissals. Essentially, the high-income threshold operates as a limit to an employee’s eligibility to be protected from unfair dismissal under the terms of the Fair Work Act.[4]
If an employee is not covered by a modern award, or if an enterprise agreement does not apply to them, they must have an annual rate of earnings of less than the high-income threshold.
- Mandatory superannuation contributions are rising to 5%.[5]
- The tax-free cap for redundancy payments is increasing to $12,524 plus $6,264 for every additional year of service.[6]
- The unfair dismissal compensation cap is increasing to $87,500. For more information, visit the Commission’s Compensation for unfair dismissals.[7]
Fixed Term Contract Changes
From 6 December 2023, new rules apply when engaging employees on fixed term contracts.[1]
A fixed term contract terminates at the end of a set period (for example, the contract ends on a set date or after a set period of time or a season).
There are some exceptions to who these limitations apply to which means they don’t apply to all fixed term contracts. The limitations also don’t apply to casual employees.
There are also other rules when fixed term contracts can be used, such as:
- it can’t be longer than 2 years in total and includes any extensions or renewals.
- Contracts can’t include an option to extend or renew for longer than 2 years OR extend/renew the contract more than once.
There are also additional rules around consecutive contracts which you need to be aware of (or get in touch with Businessary).[2]
The new rules include a requirement for employers to give any employees they’re engaging on a new fixed term contract a Fixed Term Contract Information Statement (FTCIS).
Example: New fixed term employee
Ben is a new part-time employee at a marketing agency.
Ben is employed on a 12-month full-time contract to cover a parental leave position. He signs his fixed term contract on 18 December 2023.
Because Ben is a new employee and employed on a fixed term contract, his employer, Gina, must provide him with 2 important documents. These are the:
- Fair Work Information Statement (FWIS)
- Fixed Term Contract Information Statement (FTCIS).
Gina must give Ben the FWIS because he’s a new employee.
Gina must give Ben the FTCIS because he is entering a fixed term contract after 6 December 2023.
[1] FWC – Fixed Term Contract Employees
[2] FWC – Consecutive Contract Limitations
Ask HR
In every issue we will include a short Q&A section where Businessary will answer some common questions from … you!
Q: What minimum entitlements apply to my employees?
A: The National Employment Standards (NES) are the minimum employment entitlements that have to be provided to all employees.[1]
Other workplace instruments can’t provide for conditions that are less than the National Employment Standards. This includes an:
- award
- employment contract
- enterprise agreement or other registered agreement.
You need to provide the appropriate Fair Work Information Statement to each new employee (or existing employees if you haven’t provided it yet). This includes:
- Fair Work Information Statement (for permanent employees)[2]
- Casual Employment Information Statement[3]
- Fixed Term Employment Information Statement[4]
The minimum entitlements of the NES are:
- Maximum weekly hours
- Requests for flexible working arrangements
- Offers and requests to convert from casual to permanent employment
- Parental leave and related entitlements
- Annual leave
- Personal/carer’s leave, compassionate leave and family and domestic violence leave
- Community service leave
- Long service leave
- Public holidays
- Superannuation contributions
- Notice of termination and redundancy pay
- Fair Work Information Statement (the FWIS) and Casual Employment Information Statement (the CEIS).
[1] FWC – National Employment Standards
[2] FWC – FWIS
[3] FWC – CFWIS
[4] FWC – FTCIS
How can Businessary help you?
Find out more about any of the above or reach out to Lana Rajsic for a no obligation discussion by booking a time here.