What’s on your wish list for the New Financial Year?

What’s on your wish list for the New Financial Year?

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1st July often brings changes that businesses and employers have to take into consideration.

This year will be no different.

We may be able to help you make your wish come true!

Here are a few to kick off the new year:

Minimum wage increase by 2.5%

It is important to understand that this refers to the ‘minimum wages’! If you already pay your employees above the minimum wage, their wages do not have to be increased!

Make sure you’re across the minimum wage requirements that apply to your industry, set out by the applicable modern award.

It will happen in three stages:

GROUP 1 – 1st July increase date – wage increase to be applied from the first full pay period on or after 1/7/2021

for ‘award free’ employees who are subject to the National Minimum Wage

employees covered by a modern award that is not listed in Group 2 or Group 3

GROUP 2 – 1st September increase date

General Retail Industry Award

GROUP 3 – 1st November increase date

a list of modern awards covering businesses in the aviation, tourism & fitness industries which are most affected by Covid-19

Superannuation Guarantee to increase to 10%

Supearnnuation Guarantee is the minimum of superannuation an employer must pay for their employees – will be increasing by 0.5% to 10% on 1st July 2021.

The new rate is applicable to payments made on or after 1/7/2021.

Changes to Casual Employment

There are a whole lot of things to be aware of re. casual employment.

The Fair Work Act has been amended to include a Casual Employment Information Statement (CEIS), a formal definition of casual employment, and a pathway for casual employees to become permanent employees.

A casual conversion clause has been added which allows regular casual employees the right to request their employment to be converted from casual to full-time or part-time.

Small business employers (with fewer than 15 employees at a particular time) do not have to offer their casuals a conversion, but must give their existing casual employees a copy of the CEIS as soon as possible.

An employee of a small business can make a request to their employer if they meet the requirements at any time. Small businesses are under no obligation to offer casual conversion, but are obligated to consider a request.

Non-Small Business

For non-small businesses there will be a transitional period ending on the 27th of September 2021. After the 27th of September, all non-small businesses must offer conversion to any casual who has been working for 12 months and a regular pattern for 6 months.

An employer will have to offer their casual employee to convert to full-time or part-time (permanent) when the employee:

  • has worked for their employer for 12 months
  • has worked a regular pattern of hours for at least the last 6 of those months on an ongoing basis
  • could continue working those hours as a permanent employee without significant changes

Get in touch if you have any questions.

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