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Employment and Workplace Changes

As from the first full pay period after 1 July 2012, a new National Minimum Wage for Award-free adults applies. The new minimum weekly wage is $606.40 per week ($15.96 per hour). The loading for a casual employee is 25%.

The new minimum wage is as a result of the Annual Wage Review that is undertaken by Fair Work Australia. Employers ought be aware that an employee must not be paid less than the minimum rate of pay that is either specified in their Modern Award or the National Minimum Wage if they are not covered by an Award.

Employers also ought review their current Enterprise Agreement or Collective Agreement to ensure that the base pay that is covered by those agreements does not result in an employee being paid less than the National Minimum Wage.

Another change as a consequence of the Fair Work decision is that the high income threshold is now $123,300.00. This figure affects an employee's access to unfair dismissal whilst the maximum compensation that can be awarded under an unfair dismissal is now $61,650.00. These figures now need to be carefully considered by an employer when assessing whether an employee is entitled to bring an unfair dismissal claim on termination or the amount that they might recover if successful in an unfair dismissal claim.
 
Published October 2012

For further advice or assistance

Contact Peter Wilson on 5337 0252 or pwilson@nevetts.com.au

The information in this publication or on this website is of a general nature only. It is not, nor is it intended to be, legal advice. You should consult a lawyer for individual advice about your particular circumstances.
The information on this website is of a general nature only. It is not, nor is it intended to be, legal advice. You should consult a lawyer for individual advice about your particular circumstances. Nevett Ford do not warrant that information contained in links to third party sites are correct and accept no responsibility for the accuracy and reliability or any other matter in relation to a third party site.