Employment Legislation Changes: Wage, Super, Leaves

Over the next few months, there will be some important legislative changes that will come into effect which will impact businesses.

Minimum wage increases

The Fair Work Commission (FWC) announced an 8.6% increase to the National Minimum Wage and a 5.75% increase to minimum wage in Modern Awards. This will take effect from the first full pay period on or after 1 July 2023.

Superannuation Contribution

There will be an increase to the mandatory superannuation contribution rate that employers need to pay to eligible employees from 1 July 2023. The contribution rate will rise from 10.5% to 11% of ordinary rates of pay for the 2023-24 financial year. This increase is part of the current legislation timetable, to gradually increase the Superannuation Guarantee (SG) by 0.5% each financial year until it reaches 12% by 1 July 2025.

Paid Parental Leave

The existing entitlement of 18 weeks’ government funded paid parental leave will be merged with the current Dad and Partner Pay entitlements of 2 weeks.

From 1 July 2023, both parents can share a total of 20 weeks of the leave. The 20 weeks can be taken flexibly. These changes apply to parents of children who are born or adopted on or after 1 July 2023 and the leave must be used until the child reaches the age of two.

Employers who offer additional parental leave benefits should consider how these changes impact their existing policies.

Flexible Work

Starting 6 June 2023, eligibility for requesting flexible working arrangements extends to:

• employees or member of their family or household experiencing family and domestic violence
• employees who are pregnant

Employers will have to:

• discuss the request with the employee
• make genuine effort to explore alternative arrangements to accommodate the employee’s specific circumstances
• consider potential consequences of refusal to the employee

The employer is required to respond in writing to the request within 21 days. If the business decision is refusal of request, the business needs to ensure the refusal is on reasonable business ground. This should outline reasonable business grounds for refusal, any other changes the employer is willing to make to accommodate the employee’s circumstances, stating there are no changes, and information about referring a dispute to the Fair Works Commission.

For further assistance or advice, please contact our HR team on 07 3273 0800.