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Penalty Rate Reduction – June 19

Views: 352Posted 02-07-2019

Employsure’s Learning and Development facilitator, Thorunn Arnadottir, shares the changes that have happened in the month of June:

  • National minimum wage increase
  • Penalty rate reductions
  • Roster changes (Hair & Beauty Industry)
  • Real Estate Award
  • High income threshold
  • Rights of entry permits
  • Victoria portable long service leave

Hello and welcome to our June update on employment relations changes.

Businesses across Australia are in the process of reviewing employee’s entitlements and conditions, in anticipation for the upcoming legislation changes rolling out in the new financial year. If you are unaware of these changes here is a quick summary.

National Minimum wage increase

The national minimum wage increase will see a large number of federal system employees across Australia receiving a 3% increase to their pay from the first full pay period in July.

Some awards will have additional increases, such as the Pharmacy Industry award which will see some levels of employees, receive an additional 2.5% from 1 July – and the casual loading rate in the Business Equipment Award will change from 23% to 24%.

Penalty rate reductions

Sunday penalty rates are reducing for a number of employees under the Hospitality Industry Award, Fast Food Industry Award, General Retail Industry Award and Pharmacy Industry Award. These changes won’t affect all employees though, as application is specific to the type of employment, classification level or type of shift worked.

Rosters – Hair and Beauty Industry

Rostering arrangements for full-time employees will be introduced into the Hair and Beauty Industry Award, setting out how ordinary hours of work can be averaged over various roster cycles. Notification requirements for changing rosters will also change.

Real Estate Award

If you are in the Real Estate industry, engaging commission only employees – From the 30th of June 2019, you can no longer engage part-time employees covered by the Real Estate Industry Award on a commission only basis and they will need to receive at a minimum, the base rate of pay plus

High income threshold

The High Income threshold will increase, meaning that non-award employees who receive annual guaranteed earnings of to $148,700 or more will be excluded from making an unfair dismissal claim. The compensation limit for unfair dismissal claims will also raise to $74,350, for dismissals occurring on or after 1 July 2019.

Rights of Entry Permits

The Fair Work Amendment (Modernising Right of Entry) Regulations will come into effect from 1 July. The amendment will require right of entry permits issued by the Fair Work Commission to include a photo and signature of the permit holder, as well as any conditions on its use.

Victoria Portable long service leave

From 1 July, Victoria’s Long Service Benefits Portability Act commences operation and entitles contract cleaning, security and community services industries to access a portable long service leave scheme, for the first time. This will allow eligible workers to move from employer to employer within the same industry without losing their accrued entitlements to long service leave.

If you require further information about these changes and how they may impact your business, get in touch with Employsure today, we are here to help!


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