Employment law update – changes you may have missed

Employees and employers will still be able to negotiate their own agreements outside of the fair pay agreement, but only if the terms do not fall below those set out in the fair pay agreement.

It is unclear how long the FPA Act will be around for. It came in to force in December 2022, but the National party has already said it will repeal it if they win this year’s election; the ACT party was also opposed to it.

Employment Relations (Extended Time for Personal Grievance for Sexual Harassment) Amendment Bill

An upcoming change to this bill will extend the time to raise a personal grievance based on sexual harassment to 12 months.

Previously, personal grievances had to be raised within 90 days of the incident; however, studies have shown, in the context of sexual harassment, 90 days may not be long enough, as it can take people some time to feel safe to raise it with others.

Although the bill is still in the final stages of the parliamentary process, it has been supported by all parties and is likely to be passed in the next few months, after which it will come into effect immediately.

Employment Relations (Restraint of Trade) Amendment Bill

Another potential change on the horizon is the Employment Relations (Restraint of Trade) Amendment Bill. This bill has been introduced to parliament but is not yet being actively considered. However, if passed, it could have significant effects for businesses seeking to restrict an employee’s activities post-employment.

This bill will prohibit the use of restraints of trade in employment agreements for lower- and middle-income employees by rendering restraints of trade non-applicable wherever an employee earns less than three times the minimum wage. This will prevent situations such as a barista being unable to move to a nearby coffee shop because of a restraint provision. The bill will also limit the duration of such restraints to no more than six months.

For employers continuing to use restraints of trade, the bill will require them to pay affected employees an amount equal to half the employee’s weekly earnings for each week the restraint of trade remains in effect.

Minimum wage increase

On 1 April 2023, the adult minimum wage will increase to $22.70 per hour, an increase of $1.50. Businesses which are living-wage-accredited should keep an eye out for that change as well.

Jessie Lapthorne is a partner in Duncan Cotterill’s employment team. If you have any questions about any of these changes, or would like any additional information, Jessie can be contacted on [email protected].