The new financial year is underway and an important “new year” resolution is to take time to review and ensure that your business is compliant with its employment obligations and practices. Although there are many other tasks that take our attention at the start of the New Year, taking time to review your employment compliance can save several headaches in the future.

It is important to consider:

1. the wages you pay in light of the Fair Work Commission’s decision to increase minimum and Award wages;
2. superannuation contributions;
3. employment contracts; and
4. employment policies.

Wages

In late June 2022, the Fair Work Commission (FWC) determined a minimum wage increase of 5.2% and a modern award increase of 4.6% in its annual wage review decision. Here are the important details for your business-

1. Who gets a 5.2% increase and who gets 4.6%?

• The increase of 5.2% is for employees who are not covered by a modern award but who are entitled to the National Minimum Wage. For employees covered by modern award wage rates the increase is 4.6%.

2. From when does the increase apply?.

• In most cases, the increase comes into effect as of the first full pay period on or after 1 July 2022. There are some exceptions for whom the increase does not come into effect until the first full pay period on or after 1 October 2022. You must check if the increase is applicable to your business is 1 July 2022 or 1 October 2022.

3. What if I pay employees well above the minimum award rate?.

• You are...

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