Legal E: Are you ready for 1 July 2014?

By Elizabeth Olsson and Joanna Andrew

As 30 June approaches, the Fair Work Commission and other government agencies are busy updating the Australian Industrial Relations landscape.

This Legal E asks the question: Are you ready for 1 July 2014?

Joanna Andrew and Elizabeth Olsson highlight issues to be aware of.  

Annual Wage Review 2014 

As previously advised, from 1 July 2014 the NMW will be $640.90 per week or $16.87 per hour, an increase of 3%.

Wage rates calculated under Modern Awards will also increase by 3%, as will wages for apprentices, juniors and persons with a disability.

The transitional phasing to bring State Award wage provisions into line with the Modern Awards provisions also ends on 1 July.

Junior Retail Employee Rates Increase

Employees aged 20 with more than 6 months experience will be entitled as of 1 July 2014 to receive 95% of the adult minimum wage set by the Award, rather than the 90% previously prescribed.

Penalty Rates and Casual Loadings

Casual loading for most award-covered employees will now be 25% of the base Award rate.

With the end of phasing, care needs to be taken when applying both penalty rates and casual loading. Many awards apply both the penalty and casual loading to the base pay rate separately, rather than the penalty on top of the casual rate.

Superannuation

The superannuation contribution to be paid by employers will increase to 9.5% from 1 July.

Fair Work Information Statement - Compliance with the National Employment Standards

The National Employment Standards (“NES”) require an employer to provide each new employee with a Fair Work Information Statement before or as soon as possible after they start working for them. It is a breach of the Act to fail to do so and penalties can apply.

The Statement has been updated in preparation for 1 July 2014. A copy of the new statement can be downloaded here.

Unfair Dismissal Limit Increase

The income threshold over which employees may be excluded from the Unfair Dismissal Regime increases significantly on 1 July from $123,300 to $133,000.

For more information please contact:

 Joanna Andrew, Partner   Ph: (08) 8414 3454

 Elizabeth Olsson, Senior Associate    Ph: (08) 8414 3413                

The contents of this E-alert are for general information only. They are not intended as professional advice - for that you should consult a solicitor or barrister, or any other suitably qualified professional such as your accountant. Mellor Olsson expressly disclaims all liability for any loss or damage arising from reliance upon any information in this E-alert.

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