New right to pay secrecy may require you to review your contracts

The Federal Government’s recent changes to our workplace laws have started to take effect.

Pay secrecy workplace rights

When the Fair Work Act commenced in 2010 it introduced the concept of workplace rights such as the right to work in an environment free from discrimination based on gender; and there are many more such rights.

Since 6 December 2022:

• Employees have the additional workplace rights to: choose whether to disclose information about their remuneration and other terms and conditions of employment; and, to ask any other employee about their remuneration and other terms and conditions of employment.
   
• Employers must not enter new contracts of employment (or similar documents) which limit these workplace rights; to do so will make the employer liable for a civil penalty.

Domestic violence leave

As of 1 February 2023, employees of non-small business employers will have their entitlement to paid family and domestic violence leave increased from 5 days to 10 days in a 12-month period.  

For small business employers, this change commences on 1 August 2023.  A small business employer employs fewer than 15 employees. 

This entitlement accrues upfront, but is not cumulative from year to year. 

What can I do now?

You should review your employment contract templates and remove any term that requires the employee to not disclose their remuneration.

You should consider the merit of undertaking a review of remuneration and addressing any pay inequity proactively.

If you have any questions, please do not hesitate to contact us.