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HR Consultant

HR Newsletter – June 2022

FWC wage increase handed down

This week the Fair Work Commission has announced a 5.2% increase to the National Minimum wage, increasing the National Minimum Wage to $812.60 per week or $21.38 per hour.

In addition to the above, modern award minimum wages will increase by 4.6% (or for wage rates below $869.60 per week, an increase of $40 per week for a full-time employee working 38 hours per week.)

For most modern awards, this increase will come into operation from the first full pay period on or after 1 July 2022.

For the following modern awards, the increase will be delayed until the first full pay period on or after 1 October 2022:

  • Aircraft Cabin Crew Award 2020
  • Airline Operations – Ground Staff Award 2020
  • Air Pilots Award 2020
  • Airport Employees Award 2020
  • Airservices Australia Enterprise Award 2016
  • Alpine Resorts Award 2020
  • Hospitality Industry (General) Award 2020
  • Marine Tourism and Charter Vessels Award 2020
  • Registered and Licensed Clubs Award 2020
  • Restaurant Industry Award 2020.

Modern awards and pay guides are currently being updated and will be published by the Fair Work Ombudsman shortly. They expect to have these published by 1 July 2022.

 

Family and Domestic Violence Leave

Currently under the National Employment Standards (NES) all employees are entitled to up to 5 days unpaid family and domestic violence leave per year.

The Fair Work Commission has recently undertaken a review of this entitlement and has proposed to amend this to to 10 days paid family and domestic violence leave per year.

Yesterday, on the 16th of June 2022 the Australian Government wrote to the president of the Fair Work Commission stating “Consistent with the commitments made in the Government’s Secure Australian Jobs Plan, the Government intends to introduce 10 days paid family and domestic violence leave into the National Employment Standards as soon as possible.”

We expect that this will take place within the coming weeks/month, and we will provide an update once this has been confirmed, with a clear commencement date.

To keep up to date on the progress of this, visit https://www.fwc.gov.au/hearings-decisions/major-cases/family-and-domestic-violence-leave-review-2021

 

What is changing 1 July 2022?

With the commencement of a new financial year, there are many changes coming in that will impact your payroll and employees. Review the below checklist to ensure your business is up to speed:

  1. Modern award wage increase – 4.6% for most modern awards from the first full pay period on or after 1 July 2022.
  2. National minimum wage will increase to $812.60 per week or $21.38 per hour
  3. Superannuation increases to 10.5%
  4. Employees can be eligible for super guarantee (SG), regardless of how much they earn. This is because the $450 per month eligibility threshold for when SG is paid is being removed. You only need to pay super for workers under 18 when they work more than 30 hours in a week.
  5. The High-Income Threshold will increase. It is currently $158,500. Increase to be announced by the Fair Work Commission. Updates available at https://www.fairwork.gov.au/tools-and-resources/library/K600486_High-income-threshold-amounts (Employees whose annual earnings are more than the high income threshold and who are not covered by a modern award or enterprise agreement are not able to access the unfair dismissal provisions of the Fair Work Act 2009)
  6. The tax-free threshold for genuine redundancy payments will increase to $11,591 plus $5797 for each complete year of service
  7. The maximum super contribution base will increase to $60,220 (income per quarter)
  8. A new Australian Apprenticeships Incentive System will commence, to provide financial assistance to employers of Australian Apprentices and to Australian Apprentices themselves that secures the pipeline of skilled workers required to support Australia’s economic recovery. Further info is available at https://www.australianapprenticeships.gov.au/aus-employer-incentives

 

1 July 2022 changes to Social, Community, Home care & Disability Services (SCHADS) Award 2020

From 1 July 2022, significant changes will occur to the SCHADS Award impacting:

  • Minimum payments for casual home care employees
  • Minimum payments for part time employees
  • Consultation requirements
  • Broken shifts and broken shift allowances
  • Client cancellation and make-up time
  • Travelling between clients
  • Damaged clothing and laundry allowances
  • Overtime for part time and casual employees
  • Undertaking remote work

For a full overview of these changes, visit https://www.fairwork.gov.au/newsroom/news/1-july-2022-changes-social-community-home-care-and-disability-services-award

 

Ask an Expert

I have a question in regards to parental leave. What are our obligations as a company to mothers and fathers respectively in regards to leave?”

  • An employee who will be the primary carer for the child is entitled to a period of up to 12 months unpaid parental leave (plus they can apply for an additional 12 months unpaid leave), once they have been employed by the business for at least 12 months. This includes full time employees, part time employees and casual employees who have been engaged on a regular and systematic basis and have a reasonable expectation of ongoing employment.
  • If the employee wants to apply to extend the leave for an additional 12 months, they must do so at least 4 weeks before their expected return date. The business can only refuse this request on reasonable business grounds
  • Employees are entitled to Government funded paid parental leave (this is currently 18 weeks pay at the National Minimum Wage). There is an income test, work test and residency requirements the employee must meet to be eligible. The employee applies directly to Services Australia – https://www.servicesaustralia.gov.au/parental-leave-pay?utm_id=10
  • In terms of payment, the employee can request Services Australia pay them directly or Services Australia will pay the business and you will make the payment to the employee.
  • In terms of leave for the dad or partner, there is a payment of 2 weeks ‘dad and partner pay’ available. The employee must apply to Services Australia directly and they must be on unpaid leave with the business at the time. https://www.servicesaustralia.gov.au/dad-and-partner-pay
  • Some employers do offer additional employer funded parental leave, but this is not a requirement and is up to the business. If you do decide to offer this, I would recommend you have a policy that clearly outlines the entitlement.

For more information on the above, please contact us on 1300 887 458 and speak with one  of our HR Consultants. If you are interested in learning more about our HR services, including HR OutsourcingHR ConsultingHR Advisory Services, contact us at enquiries@liquidhr.com.au.