New rates, thresholds and other changes in the employment arena commence from 1 July 2014. The following article briefly summarises the main amendments that employers should be aware of.

National minimum wage

From 1 July 2014, the national minimum wage will increase to $640.90 per week or $16.87 per hour (calculated on the basis of a 38 hour week for a full time employee). This represents a 3% increase.

The increase applies from the first full pay period starting on or after 1 July 2014.

Minimum award rates

Minimum award rates will also increase by 3% on the first full payment period starting on or after 1 July 2014. The adjustment to the minimum award rate may also affect penalties and allowances.

Employers should review applicable awards to ensure compliance.

The increase may also impact upon employers who have enterprise agreements if the rates fall below the national minimum wage or award rates or transitional arrangements which are directly linked to the national minimum wage or award rates.

When over-award rates are paid, there may be the ability to absorb the increase into the over award payments. In this regard, employers should seek our specific legal advice before doing so.

Casual loadings

The standard casual loading in awards and for award/agreement free employees will be 25%.

High income threshold

The high income threshold will increase from the current $123,300 to $133,000 from 1 July 2014.

This means employees whose annual rate of earnings is $133,000 or more and, are not covered by an award or agreement, are not eligible to file an application for an unfair dismissal remedy.

The maximum compensation payable for an unfair dismissal will, from 1 July 2014, be capped at either $66,500 or six months of the dismissed employee's wage (whichever is less).

Employees covered by an award who have agreed to a written guarantee of annual earnings which is higher than the high income threshold, are not eligible for award entitlements.

Employers who include guarantees of annual earnings as part of their employment practices should check the written guarantee against the new threshold amount to ensure that their employees do not fall below it.

What may be included in the high income threshold is subject to a number of factors. Employers should seek advice if they intend to rely on the high income threshold.

Superannuation increase

From 1 July 2014, the minimum superannuation guarantee rate will increase from 9.25% to 9.5%. For further information on the scheduled superannuation increase, click [here].

End to modern award transitions

As of 1 July 2014, transitional provisions from previous pre-reform awards and notional agreement preserving state awards (NAPSAa) will cease ending the State pay rates and penalties differentials.

Click [here] to see our prior article summarising the end of transitioning to modern awards.

If you would like more information about any of the amendments of your obligations in this regard, please contact National Workplace Lawyers on +61 2 9233 3989. 

National Workplace Lawyers

Note — this is for information purposes only and does not purport to be comprehensive or to render legal advice.