February 2, 2023 
There will be and have already been some big HR-related changes that have come into effect in 2023.
In an effort to improve workplace and employee conditions, there have been significant amendments relating to family and domestic violence leave entitlements, pay-secrecy clauses, and fixed-term contracts. To be in breach of these new changes could see your company facing serious financial penalties.
Family & Domestic Violence Leave Entitlement Change
Before, employees (including part-time and casual) that experienced threatening, violent or abusive behaviour by their close relative/s were entitled to five days of unpaid leave over a 12-month period.
This leave entitlement has since been changed through the Fair Work Amendment (Paid Family and Domestic Violence Leave) Act 2022.
Important leave information:
– It is now paid leave and the entitlement will increase from five to ten days.
– This leave will not be pro-rated for part-time or casual employees.
– Employees will still be entitled to five days unpaid leave until their paid leave is reset at their commencement anniversary
– Paid leave will reset on the employee’s commencement anniversary; it does not accumulate
The scope of domestic violence has also widened:
– It is no longer restricted to just current or ex-partner of an employee, it also includes unrelated household members.
This leave is to come into effect at different times, depending on your business size. The leave will be in place from:
– 1 February 2023: Employees at businesses with more than 15 workers
– 1 August 2023: Employees at businesses with less than 15 workers
Note: From this date, employees are entitled to the 10 days immediately. The leaves will reset on their anniversary.
For example:
If an employee who started working at a company (more than 15 employees) from April 21, 2022, they will be immediately entitled to that leave from February 1, 2023. The leave will just reset on April 21, 2023 (their work anniversary).
Pay Secrecy Clauses Banned
Pay secrecy has been a hot topic for some time in Australia. Union leaders have made claims that they are impeding fair pay-negotiations for employees. A pay secrecy clause directs employees not to discuss their salaries with their colleagues. This practice will be banned from this year through the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (although there is an exception to contracts entered prior to 7 December 2022).
There are three different situations you can find yourself in:
1. Employment contracts prior to 7 December 2022
Contracts prior to that date will stay in-effect, but when the contracts are changed they will no longer be enforceable.
2. Employment contracts on or after 7 December 2022
This clause will not be enforceable and will have no effect.
3. Employment contracts from 7 June 2023
Pay-secrecy terms will be banned from 7 June 2023. Any employers in breach of this could face penalties.
Fixed-Term Contract Changes
The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 became law on December 6, 2022, but the fixed term rules will only commence from December 7, 2023. This law attempts to reduce rolling contracts by reducing the length of fixed-term contracts, with a goal to improve job security.
Fixed-term contract employees have the same entitlements as a full-time or part-time worker; however, as in the name, their employment is for a specified length of time. Failure to adhere to these rules could result in financial penalties. To give you an idea of the penalties, they can reach a maximum of $13,320 for an ordinary violation and $133,200 for a serious violation.
Fixed-term contracts will now become permanent if:
– The contract period exceeds two years
– The contract is extended and / or renewed that makes the total period longer than two years (this means rolling contracts are out)
– The contract offers more than one renewal / extension option
– The contract shortly follows the completion of another contract between the same employer and employee
There are some exemptions (which needs to be proven with evidence by the employer) to these changes, they include:
– The employee has a specific skill set that the employer does not have, and is critical to the completion of a specific task or project.
– The employee is in a training arrangement like an apprenticeship or traineeship
– The employee is filling in temporarily for an absent employee
– The employee is undertaking the work during an emergency
– The employee is doing essential work during a peak period
These changes are only the start of an overhaul of Australia’s workplace laws. After the government’s Jobs & Skills Summit 2022, we can expect more changes in the future. To keep your company compliant you can consider undergoing an HR audit or consulting an HR expert.
