HRD spoke to an employment lawyer about the changes
Key changes in the nation's workplaces start from 1 July, with a leading lawyer telling HRD the changes will give workers more recognition.
Changes include an increase to the annual minimum wage, a rise in the superannuation guarantee and portable long service leave in NSW.
HRD spoke to Joseph Kelly (pictured right), Principal at Kelly Workplace Lawyers, about the changes and what you need to know about them.
From July 1, Parental Leave Pay will increases from 22 weeks to 24 and families who accesss government-funded parental leave will also be paid superannuation at the new standard rate of 12%, a move that has been described as a continuation of the government’s Closing the Loop Hole initiative announced back in 2022.
“It won’t be a big administrative change,” Kelly said, “so they’ll be able to quickly adapt, which is positive."
“This whole thing brings the Commonwealth paid parental leave in line with a lot of in-house policies, so it’s just a case of tidying up what’s already going on.”
Another benefit, Kelly added, was that paid parental leave will now apply to still births and neonatal deaths – another example of reducing prejudice in the workplace.
“It [legislation] is part of a broader shift from the concept that maternity leave is an indulgence – and we’re now focusing on those people that take leave still being a valued employee. Workplaces need to support this part of life.”
This adds to a list of measures already in place to ensure workers, particularly women, feel supported in the work place – which already includes the right for your position to be reserved until you return to work and the right to flexible working arrangements.
“Parents might not always be visibly in the workplace,” Kelly said, “but they’re still a part of the culture. They’re not suddenly erased, and I think this goes a fair way in highlighting how important their contributions are.”
The amount of superannuation paid by your employer is set to increase from the beginning of July from 11.5% to 12%, which is “good news all round,” according to Kelly.
“The plan was always to move it from 9% to 12% over a graduated period, so it’s good to see that’s finally coming to fruition. There are arguments that it should go up higher and we will see where that goes.”
The “appetite” for super to increase further, Kelly added, could potentially reopen conversations about additional compensation.
Following the annual wage review by the Fair Work Commission earlier in June, the national minimum wage will increase by 3.5% from July.
The Commission said higher inflation in the past four years meant living standards for employees “dependent upon Modern Award wages have been squeezed, and the low paid have experienced greater difficulty in meeting their everyday needs.”
A strong labour market and low unemployment were some of the reasons the Commission gave about the increases’ sustainability.
This change, according to Kelly, will hopefully see more buoyant wages for Australian workers in the future.
“The increase is now your starting point. Collective agreements and workplace agreements weren’t looking at any more than around three percent, when you’re asking for more money. Now that’s been met – this could be the start of seeing things get better for workers over the next year or two.”
New South Wales Government is introducing a new portable long service leave scheme for community service workers come July 1 – giving them access to six weeks of paid leave without having to work for the same employer.
“This is another example of addressing the important work care workers do,” Kelly emphasised, “especially when a lot of them are female. It’s invaluable.”
“We’ve seen in the construction industry that this works – and that there isn’t a drop in productivity – and I think it only makes sense that this is now being rolled out to other industries, especially when care workers don’t always work in one place with one employer.”
