Employment News Alert: Minimum Wage increases by 2.4% - time to review your employees' rates of pay
On Tuesday 31 May 2016, the Fair Work Commission announced an increase of 2.4% to the national minimum wage and the minimum wages in the modern awards.
From the first pay period on or after 1 July 2016, the new national minimum wage will be $627.70 per week or $17.70 per hour. The increase in the modern award rates of pay will be reflected in the awards over the next few weeks as these amendments are published.
The impact on your business
To ensure that your business is paying its employees the correct rate of pay, we recommend that you review the pay rates of all those in your employ who are covered by a modern award to ensure that your employees are receiving at least the minimum wage set by the award. Where you have employees on individual flexibility agreements or are paying your employees a salary inclusive of allowances, overtime and penalty rates, you should review the salary for those employees to ensure that the employee continues to be better off overall under the arrangement than they would be under the modern award.
It is also important for any business covered by an enterprise agreement to review the rates of pay stipulated in the enterprise agreement to ensure that these are equal to, or in excess of, the rates of pay provided by the modern award.
If there is no modern award or agreement that applies to your business, you should ensure that the rates of pay for your employees are at least equal to the minimum wage.
There are significant penalties that can be imposed on an employer for failing to pay its employees at the correct rate of pay.
In addition to reviewing your employees’ rates of pay, it is also a good time to conduct a review of your employment contracts and workplace policies to make sure that they are up to date and reflect any recent developments in the law.
The Employment, IR & Workplace Safety Team at TressCox Lawyers can assist you with any questions you may have regarding the minimum wage increase and how it affects your business or with a review of your employment contracts and workplace policies.
Peta Tumpey, Partner
Keely Horan, Associate