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Workplace relations changes effective 1 July 2022

Caroline HutchinsonCaroline Hutchinson litigation, ||

There are various workplace relations changes that came into effect on 1 July 2022. Employers and employees must be aware of these changes.

Minimum wage increase

As discussed in our previous article, the Fair Work Commission has approved increases in respect of the National Minimum Wage (NMW). These changes include the NMW increasing by 5.2 per cent, meaning the new NMW will be equal to $812.60 per week (or $21.38 per hour). In addition, modern award minimum wages have increased, with modern award rates below $869.60 per week attracting an increase of $40 per week, and modern award rates above $869.60 attracting an increase of 4.6 per cent. Read more here.

Changes to the high income threshold

The high income threshold has increased to $162,000 per annum, up from $158,500 per annum. The high income threshold limits an employee’s access to bring an unfair dismissal claim, unless the employee is covered by an enterprise agreement or award. The compensation limit for unfair dismissal cases has increased to $81,000 for dismissals occurring on or after 1 July 2022.

Changes to superannuation

The minimum superannuation guarantee percentage has increased from 10% to 10.5% per annum.

The superannuation contributions base has increased to $60,220 per quarter (or $240,880 per annum. Furthermore, the $450 monthly minimum threshold has been removed, which means that superannuation contributions are payable in respect of employees regardless of how little the employee has been paid that month. However, an exception to this is if the employee is under 18 years of age. In this case, they will need to have worked for at least 30 hours in a week to be eligible.

Changes to the Fair Work Information Statement (FWIS)

The Fair Work Ombudsman has issued an updated FWIS, which contains information about the National Employment Standards and conditions of employment. A copy of the FWIS must be given to employees when they commence employment. The updated FWIS can be accessed here.

If you have any questions relating to the above, please don’t hesitate to contact a member of Coleman Greig’s Employment Law team, who would be more than happy to assist you today.


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