Employers need to be aware of, and compliant with, the following changes which take effect from 1 July 2022:
-
- Updated Fair Work Information Statement and Casual Employment Information Statement – these have been updated by the Fair Work Commission and can be found here. The FWIS needs to be provided to all new employees on commencement, and the FWIS and CEIS both need to be provided to all new causal employees on commencement of employment. We recommend providing these with the letters of offer or employment contracts so you do not forget.
- The high income threshold will increase from $158,500 to $162,000 exclusive of superannuation. This amount is the limit to an employee’s eligibility to be protected from unfair dismissal.
- The high income threshold is also important as Modern Awards do not apply to high income employees. A high income employee is an employee who:
- has accepted a written guarantee of annual earnings, and
- is guaranteed to earn an annual amount which is more than the high income threshold, which from 1 July 2022 is $162,000 exclusive of super.
- The minimum percentage of employer superannuation contributions for the superannuation guarantee has increased a further 0.5% to 10.5% from 1 July 2022. This will continue to rise incrementally until it reaches 12% in 2025. Employers must ensure all contributions post 1 July 2022 meet the minimum.
- The Superannuation maximum contribution base has also increased to $60,220 per quarter ($240,880 per year) for the new financial year.
- As previously communicated, the Fair Work Commission has recently announced:
- a $40 a week increase to the National Minimum Wage, which amounts to an increase of 5.2%
- a 4.6% increase to minimum award wages, with a $40 minimum increase applying – most of these take effect from 1 July 2022, but some will not take effect until later in the year depending on which Award applies to your employees.
As always, SLC is available to assist with any employment law queries that you may have. It is also a good time to review your employment contracts and independent contractor arrangements in light of recent caselaw which has emphasised the importance of the contractual terms when looking at how staff are engaged.
