The new financial year brings the following changes you will need to implement and be aware of in your workplace from 1 July 2019.

New increases to minimum wages to take effect from the first full pay period on or after 1 July 2019:

  • The Fair Work Commission (FWC) announced a 3.0% increase to all modern award rates;
  • The new national minimum wage for full time (38 hours per week) employees is $740.80 per week or $19.49 per hour; and
  • The casual loading for award/agreement free employees remains set at 25% consistent with the standard casual loading in modern awards.

Employers must ensure they pay the correct award rate and penalties that apply. 

Failure to do so may lead to employers facing an underpayment claim and or a civil penalty prosecution by the Fair Work Ombudsman for contravening a modern award.

The increase to minimum rates of pay also flows through to penalty rates and overtime loadings payable under the applicable modern award.

Increase to unfair dismissal high income threshold

The high income threshold for the eligibility for workers to bring an unfair dismissal claim increases from$145,400 to $148,700.

Increase to maximum compensation for unfettered dismissal claims

The maximum compensation the FWC can order in an unfair dismissal application increases from $72,700 to $74,350.

Superannuation contribution

The superannuation contribution guarantee remains at 9.5% however this is scheduled to increase to 10% on 1 July 2021.

Human resources housekeeping

The start of a new financial year is a good time to review and update your staff employment contracts and workplace policies and procedures to reinforce and clarify standard operating procedures in your workplace. 

Well written policies help employers manage staff more effectively by clearly defining acceptable and unacceptable behaviour in the workplace and set out the implications of not complying with those policies.

Please contact us with any HR issues or if you wish to discuss your existing staff employment contracts and workplace policies and procedures.

Employers must pay employees according to the current pay conditions under applicable industrial instruments

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Josh Abbott

Josh Abbott

Consultant
Jenny Gillespie

Jenny Gillespie

Consultant
Sophie Kermeen

Sophie Kermeen

Solicitor