Pay Secrecy
It is now a workplace right that employees (and job applicants) can disclose (or not disclose) their own remuneration or ask another person about their remuneration. Essentially, this means the inclusion of a Pay Secrecy Clause in an employment contract is now a breach of the FW Act. Employers are not allowed to prohibit, in any shape or form, the entitlement of an employee to discuss their pay.
As a workplace right, and a means to improve transparency, taking any adverse action (disciplinary or other negative actions) against an employee for discussing their pay, is unlawful and could result in a General Protections claim.
The Act sets out a six-month grace period for employers to ensure their standard employment contracts comply with the legislation. Employers will have until the 7th of June 2023, after which penalties will be applied and can include up to $63,000 per breach.
Increase to small claims cap
Previously, under the FW Act, employees could take legal action in a small claims court to resolve claims regarding underpayments that were for $20,000 or less. The Act will now make small claims for employees more accessible by increasing the monetary cap on the amount that can be awarded in small claims proceedings under FW Act from $20,000 to $100,000. Where an applicant is successful, they may also have the ability to recover the court filing fee as costs against the other side.
The increase aims to expand the access to the small claim’s procedure, which will now allow applicants to make small claims simply, quickly, cheaply and without legal representation if they choose so, and as an informal means to resolve claims under the Act and in the courts.
A review of the small claim’s procedure will begin on the 1st of January 2023, with the changes to the small claims cap and filing fees coming into effect on the 1st of July 2023.
Equal Pay
The Fair Work Commission can now consider gender base equal remuneration requests based on historical gender-based undervaluation of work (e.g., carer roles).
The Act removes the need to find a male comparison and clarifies that sex discrimination is not a necessary requirement for the Fair Work Commission to make an equal remuneration order.
The Act also enables the creation of an Expert Panel within the Fair Work Commission, which is designed to address pay equity and the care and community sector.
These changes are now in effect as of the 7th of December 2022.
How ProcessWorx can help your business:
If you have any concerns as to your compliance and implementation of the new changes, please contact ProcessWorx and we can assist you with your HR compliance.
If you would like more information about Human Resources or Industrial Relations for your business, please contact ProcessWorx on (08) 9316 9896 or enquiries@processworx.com.au
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