The 1st of July 2020 brought with it not just the start of a new financial year, but also a raft of changes for employers.

Here's a snapshot of some of the important changes that took effect on 1 July 2020:

1. The national minimum wage increased by 1.75%, to $753.80 per week or $19.84 per hour (before statutory superannuation). Employees aged between 16 to 20 are entitled to a percentage of the minimum wage based on their age.

2. For modern awards, minimum award wages have also increased by 1.75%.   Importantly, this will be a staged process, and the date that the increase comes into effect will depend on the industry in which employers operate:

   • frontline health care & social assistance workers, teachers and child care, and other essential services - from 1 July 2020;

   • construction, manufacturing and other industries - from 1 November 2020;

   • accommodation and food services, arts and recreation services, aviation, retail and tourism - from 1 February 2021.

3. The statutory superannuation contribution for employers remains at 9.5%.

4. The high income threshold for unfair dismissal claims increased from $148,700 to $153,600 per annum (excluding statutory superannuation). This means that award and enterprise agreement-free employees who earn over $153,600 (excluding compulsory employer superannuation contributions, bonuses and other separately identifiable amounts) are not eligible to make a claim for unfair dismissal.

5. Sunday penalty rates in the General Retail Industry Award 2010 and other awards reduced to 150% for full-time and part-time workers and to 175% for casual workers. This reduction forms the last tranche of the penalty rate reduction rollout, which has been gradually implemented since 2017.  It is important to seek specific advice in relation to the modern award relevant to your industry.

Consequences of non-compliance

A failure to comply with the 1 July 2020 changes may lead to an underpayment claim, potential breach of an award, prosecution, and an order that your business and its directors pay a fine.

How we can help

1. We can audit employee remuneration against the respective award/national minimum wage order (whichever applies) to ensure compliance with the 1 July 2020 changes.

2. If your business currently pays above award wages, we can advise whether any increase can be absorbed into any existing above award arrangements and review your employment contracts to deal with these changes in the future, to minimise cost to your business.

3. We can undertake a review of your workforce to ensure your business is compliant in respect to any award-covered and award-free employees.

4. We can provide advice and representation at the Fair Work Commission and the Fair Work Ombudsman on behalf of your business, should you be served with any underpayment claim, workplace complaint or unfair dismissal claim.

Please contact our employment team for more information.

The material in this article was correct at the time of publication and has been prepared for information purposes only. It should not be taken to be specific advice or be used in decision-making. All readers are advised to undertake their own research or to seek professional advice to keep abreast of any reforms and developments in the law. Brown Wright Stein Lawyers excludes all liability relating to relying on the information and ideas contained in this article.

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