2024 Has seen some changes to workplace relations that businesses need to know. Below is a summary of changes that have take place so far and ones that are coming.
From July 2024
Increases to National Minimum Wage and Award Wages
The Fair Work Commission increased the national minimum wage rates to $915.90 per week (or $24.10 per hour), up from $882.80 per week (or $23.23 per hour) in the previous financial year and modern award minimum wage rates are increased by 3.75%. The new minimum wage rates apply from the first full pay period on or after 1 July 2024. You can read more about it here.
The Fair Work Ombudsman has also updated the new minimum wages for modern awards available here.
Increases to the High-Income Threshold and Maximum Award for Unfair Dismissal Claims
The Fair Work Commission has also increased the high-income threshold in unfair dismissal cases to $175,000 and the compensation limit is now $87,500 for dismissals occurring on or after 1 July 2024.
Maximum amount that can be awarded for unfair dismissal has increased to $87,500.
Increase to the Superannuation Guarantee
Furthermore, as of 1 July 2024, the superannuation guarantee (SG) rate increased from 11% to 11.5% in accordance with the legislated schedule for the incremental rise of superannuation each year until it reaches 12% on 1 July 2025.
Increase to the Fair Work Commission filing fees and maximum civil remedy under the Fair Work Act
From 1 July 2024, the filing fee for dismissal, general protections, bullying and sexual harassment at work applications has increased to $87.20.
Maximum penalty for contravening a civil remedy provision of the Fair Work Act increased to $99,000 for a body corporate and $19,800 for an individuals.
Australian Government Parental Leave Pay
Eligible employees who are the carer of a child born or adopted from 1 July 2024 can get up to 22 weeks’ Parental Leave Pay, which is paid at the National Minimum Wage.
Services Australia is the government organisation that manages the Parental Leave Pay scheme. For more information visit Services Australia – Parental Leave Pay.
For information about parental leave pay for a child born or adopted between 1 July 2023 and 30 June 2024, visit Services Australia – Parental Leave Pay for a child born or adopted from 1 July 2023.
For information about parental leave pay for a child born or adopted before 1 July 2023, visit Services Australia – Parental Leave Pay for a child born or adopted before 1 July 2023.
From August 2024
New Casual Employee Definition
Currently, the definition of casual employment is that an employer has offered employment on the basis that the employer makes no firm advanced commitment to continuing and indefinite work according to an agreed pattern of work for the person and the person accepts that offer on that basis and the person becomes an employee as a result of that acceptance.
Simply put, if an employer offers a person to become a casual employee and the contract states that, then it is accepted that the relationship is of casual employment.
From 26 August 2024, the new definition of casual employment will focus on the practical aspects of the employment relationship rather than solely relying on the terms outlined in the employment contract.
You can read more on this here.
New pathway for casual conversion to permanent employment
Under current laws, the right to request conversion requires the employee to have been employed for at least 12 months and in the last 6 months worked a regular pattern of hours on an ongoing basis which, without significant adjustment, the employee could work as a full-time or part-time employee. There is also an obligation on employers to offer conversion to eligible employees.
From 26 August 2024
- Employees will only need work for at least 6 months with a non-small business employer or at least 12 months with a small business employer to have the right to convert to permanent employment.
- The obligation on employers to offer conversion to eligible employees will cease to operate. This obligation ceases on 26 February 2025 for small business employers.
Employees will notify their employer that they no longer believe they are a casual employee under the FW Act definition. This is called the new ‘employee choice pathway.’
Employees will not be able to exercise this right within 6 months of having a prior notification rejected.
Any period of employment that occurred before these changes take effect will not count for the purposes of determining whether an employee has met the eligibility requirements.
The right to request casual conversion for employees who are engaged as casual employees as at 26 August 2024 will be preserved to ensure that existing casual employees retain a mechanism in the FW Act to request conversion to full-time or part-time employment, until such time as they are able to access the new employee choice pathway.
You can read more on this here.
Right to Disconnect
Eligible employees will have the right to refuse contact outside of their working hours, unless that refusal is unreasonable. This will take place from 26 August 2024 for non-small business employers and from 26 August 2025 for small business employers.
Whether an employee’s refusal is unreasonable will depend on several factors including (reasonableness factors):
- the reason for the contact;
- whether the employee is compensated for being available in the period when contact is made or attempted, or for working additional hours outside their ordinary hours of work;
- the nature of the employee’s role and level of responsibility; and
- the employee’s personal circumstances, including family or caring responsibilities.
The Fair Work Commission will provide written guidelines concerning the right to disconnect.
A “right to disconnect” term will be included in all modern awards by 26 August 2024.
In a nutshell, the right to disconnect will not mean employers will be prohibited from requiring an employee to monitor, read or respond to, contact or attempt contact outside of hours where:
- the employee is being paid a stand-by allowance;
- the employer’s contact is to notify them they are required to attend or perform work; and
- the contact is in accordance with the usual arrangements for such notification.
It also will not prevent employers from contacting or attempting to contact an employee out of hours to notify them of an emergency roster change or a recall to work.
Need help with HR?
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