Article - 2024 recap and upcoming changes

With 2024 coming to an end, it is important to reflect on the changes that have significantly impacted workplace laws.  This year we saw the introduction of the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 by the Australian Government.  The purpose of the Fair Work Legislation Amendment was to minimise gaps in employment laws, which had historically been exploited for unfair practices.  It is important to note that a few of these changes are already in effect, however, some of the changes will take effect at some stage in 2025.

2024 recap:

Annual Wage Review and Superannuation Guarantee Increase:
On 3 June 2024, the Fair Work Commission announced that the National Minimum Wage would increase by 3.75 percent on 1 July 2024.  More specifically the National Minimum Wage increased from:

·             $23.23 per hour to $24.10 per hour; and

·             $882.80 per week to $915.90 per week (based on a 38 hour week before tax).

In addition to this, the modern award minimum rates also increased by 3.75 per cent.  The Fair Work Commission took into account various factors, including:

·             Relative living standards;

·             The needs of the low paid;

·             Workforce participation;

·             Performance and competitiveness of the national economy; and/or

·             Gender equality.

As well as this, on 1 July 2024, the Superannuation Guarantee also increased by 0.5 per cent.  This increase means that employers are required to make a compulsory superannuation contribution of 11.5 per cent to an employee’s ordinary time earnings (“OTE”).  It is important to note that this percentage is also scheduled to increase to 12 per cent on 1 July 2025. 

Increase to the high-income threshold:

From 1 July 2024, the high-income threshold in unfair dismissal cases increased from $167,500.00 to $175,000.00.  It is important to note that this figure is usually adjusted annually on 1 July and may increase in 2025.

Changes to casual employment:

On 26 August 2024, changes to casual employment came into effect.  These changes include the definition of casual work, the pathway to full-time or part-time employment and employee and employer responsibilities. – click here for more information.

Additionally, there have been changes to the Casual Employment Information Statement (“CEIS”) to reflect the above mentioned changes.  An employer is required to provide a copy of the CEIS to new casual employees before, or as soon as possible after, they have started employment.

Right to disconnect for non-small business employers:

On 26 August 2024, the “Right to Disconnect” provisions came into effect for non-small business employers. The Right to Disconnect grants employees a right to refuse to monitor, read or respond to contact from an employer or a third party outside of their ordinary working hours, unless the refusal is unreasonable. Whether the refusal is considered to be unreasonable is dependent on various considerations. For further information regarding the “Right to Disconnect” provisions, click here to view our full article.

Upcoming Changes:

Criminalising intentional wage underpayments:

From 1 January 2025, intentional underpayments of wages by employers will become a criminal offence with serious consequences.  Employers will commit an offence if:

·             they are required to pay an amount to an employee (i.e. wages), or on behalf of or for the benefit of an employee under the Fair Work Act 2009 (Cth), or an industrial instrument; and

·             they intentionally engage in conduct that results in their failure to pay those amounts to or for the employee on or before the day they are due to be paid.

Annual Wage Review and Superannuation Guarantee Increase:

Prior to 1 July 2025, the Fair Work Commission will review the National Minimum Wage and minimum rates of pay in modern awards to determine if an increase will be granted.  Be sure to keep an eye out for HR Business Assist’s update on this.

Additionally, it is important to note that the Superannuation Guarantee will increase to 12 per cent on 1 July 2025.  Moving forward, an important factor that employers should consider is whether an employee’s remuneration package will be inclusive or exclusive of superannuation.

Right to disconnect for small business employers:

From 26 August 2025, the “Right to Disconnect” provisions will come into effect for small business employers and their employees.  It is important to note that the same provisions will apply. 

If you feel uncertain about these changes or wish to gain further information - click here. Alternatively, contact the team at HR Business Assist on 1300 138 551 or via support@hrbusinessassist.com.au