Tag: employees

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Important Update: Minimum Wage and Modern Award Rates Increasing from 1 July 2025

Posted on | by Allan Hall

The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage and all Modern Award minimum wage rates, effective from 1 July 2025.

What This Means for You

  • Now is the time to assess award coverage and classification levels for your workforce to ensure compliance
  • For employees who are not covered by an award, you must ensure their pay meets or exceeds the new National Minimum Wage
  • In Australia, it is unlawful to pay any employee less than the national minimum, regardless of whether they’re covered by an award
  • New rates must be applied from the first full pay period on or after 1 July 2025

A Quick Refresher on Modern Awards

Each year, we use this opportunity to remind our clients about the existence and relevance of modern awards, and how they can impact your business.

There are currently 121 modern awards in Australia. These set out minimum terms and conditions of employment and typically apply based on:

  • Industry (e.g. Retail, Hospitality, Building & Construction), or
  • Occupation (e.g. admin/clerical under the Clerks Award, or personal services under the Hair and Beauty Award)

While these are just a few examples, the system is designed to cover the vast majority of employers within the national workplace relations system.

Understanding which award applies is just the first step. Once confirmed, employers must ensure each employee is correctly classified to determine the appropriate rate of pay. Classification levels (and their corresponding rates) are based on factors such as duties performed, level of responsibility, required skills or licences (e.g. forklift), experience, and in some cases, age.

Now is an ideal time to reassess whether any of your employees may be covered by a modern award and to ensure they are accurately classified. Misclassification can result in underpayments and compliance issues, so it’s important to regularly review award coverage and classification descriptions, especially in light of updated minimum wage rates.

What You Need To Do

  • Review the modern award classifications applicable to each member of your workforce
  • Ensure your non-award covered employees meet or exceed the new National Minimum Wage
  • Update minimum rates in your payroll systems by 1 July 2025
  • Pay particular attention to casual, part-time, and minimum-wage employees, especially in award-reliant sectors like retail, hospitality and care services

Note: The Fair Work Commission typically publishes updated wage tables toward late June. In the meantime, you can estimate new rates by applying a 3.5% increase to current rates. We are happy to assist with these preliminary calculations if needed.

What If I Already Pay Above Award Wages

If your employees already receive above-award pay, you may not need to increase their rates, however, this depends on how they are engaged and what is clearly outlined in their written employment agreement.

  • Over-award payments can often be used to absorb the increase, provided the employee’s base pay still meets or exceeds the new minimum.
  • For those on annualised wage arrangements, ensure their total yearly pay still covers all entitlements (like overtime, penalties, and allowances) under the new rates.
  • If you use individual flexibility arrangements, enterprise agreements, or salaried contracts, it’s essential to check that employees remain better off overall compared to the updated award rates.

How We Can Help

Navigating award coverage, wage updates and compliance obligations can be complex. If you are unsure where to start or want peace of mind that your business is meeting its obligations, please reach out to our team at Allan Hall HR.

We can assist you with:

  • Interpreting and/or identifying your award obligations
  • Calculating new minimum rates, including casual loadings, overtime, and allowances
  • Reviewing over-award payments, salaried agreements, and annualised arrangements
  • Auditing your payroll to ensure full compliance with updated minimums
  • Providing tailored guidance specific to your industry and workforce

Our team at Allan Hall HR will continue to monitor the release of updated wage tables and can provide further guidance as needed. In the meantime, please contact us on 1300 916 764 or contact us here if you would like assistance in reviewing your payroll and preparing for the changes.

HR Support Centre Demo

We invite all our clients to explore our complimentary HR Support Centre, designed to help you navigate your employee obligations and stay updated on legislative changes. This valuable resource offers ready-to-use HR templates, best practice guidance, checklists, and access to a vast library of articles on compliance and employee management. Book in a free demo today.

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eofy 30 june

Employer Super Contributions for YE 30 June 2025

Posted on | by Allan Hall

ACT NOW: Employer Super Contributions for Year Ended 30 June 2025

Employers please note, if you intend to claim a tax deduction in 2024/25 for your employees’ June 2025 quarter super contributions, please ensure you make the payment by no later than 20 June 2025 to allow adequate time for the contributions to be processed through the superannuation clearing house and allocated to your employee’s super accounts.  

This is also a timely reminder for clients making employer contributions to their own or their employees’ SMSFs using the ATO’s SBSCH clearing house service. Please check that the bank details of the SMSF are up to date and correctly recorded by the ATO, otherwise payments may be rejected, causing further delays to the receipt of funds into the SMSF.

Otherwise please ensure the June quarter contributions are made by mid-July to ensure you meet the due date deadline of 28 July 2025. 

Super Guarantee (SG) base rate rise 1 July 2025

The SG base rate is set from 1 July which will increase from 11.5% to 12%.

The maximum super contributions base is decreasing from the current year’s $65,070 per quarter to $62,500 per quarter for 2025/26. This means that employers are not obligated to pay Super Guarantee contributions for an employee with quarterly earnings that exceed this limit, unless contractually required to do so.

Employers should review their employees’ contractual and award arrangements to ensure their strategy to the payment increase is in accordance with their legal obligations.

Please contact Allan Hall HR on 1300 916 764 or [email protected] for assistance reviewing or interpreting your current employment arrangements.

Please note that software providers will be making the adjustment to their systems but, depending on your setup, if you have manually entered a rate you may need to adjust this.

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business desk

Flexible Work Disputes on the Rise: Are You Compliant with the New Rules?

Posted on | by Allan Hall

As hybrid and remote working models continue to reshape the Australian workplace, there has been a noticeable increase in disputes related to flexible work arrangements, with a growing number of cases being escalated to the Fair Work Commission (FWC).

To recap, legislative changes to the Fair Work Act 2009 took effect on 6 June 2023, significantly strengthening employees’ rights to request flexible work and placing more stringent obligations on employers.

Employers are required to:

  • Respond to requests in writing within 21 days
  • Genuinely consult with the employee about their request
  • Provide clear reasons for any refusal based on reasonable business grounds

Most significantly, the FWC now has the authority to resolve disputes where flexible work requests are refused or ignored, including through binding decisions that are legally enforceable. This marks a significant shift in how flexible work matters are managed in Australia.

Since the changes took effect, there has been a noticeable uptake in employees pursuing formal dispute resolution through the Commission. This highlights the need for employers to take these requests seriously and follow correct procedures.

To help you stay compliant and avoid unnecessary disputes, here are some practical actions your business should consider:

Review and Update Your Flexible Work Policy

Ensure your workplace has a clear, accessible policy that outlines:

  • Who is eligible to request flexible work
  • How requests should be submitted (in writing, outlining the proposed change and reason)
  • The steps the business will take to assess and respond

This supports compliance, clarifies expectations and promotes consistency.

Educate Managers and Supervisors

Frontline leaders must understand their legal obligations, including:

  • The 21-day timeframe for responses
  • How to conduct genuine consultation
  • What qualifies as “reasonable business grounds” for refusal

Providing basic training or guidance materials can significantly reduce the risk of disputes.

Create a Consistent Internal Review Process

Implement a structured approach to managing requests, including:

  • Proper documentation of all requests and responses
  • Clear rationale for decisions
  • HR involvement in sensitive or complex cases

This shows transparency and supports your defence if challenged.

Use Alternative Proposals Where Possible

If a request cannot be fully granted, consider:

  • A trial period to assess suitability
  • Adjusted hours or hybrid arrangements
  • Alternative flexibility options that still meet the employee’s needs

Demonstrating a willingness to explore options reflects good faith and strengthens your position.

Seek Advice Early

If you’re unsure how to respond to a request or foresee complications, seek HR or legal advice early. This can help you navigate the process confidently and avoid escalation.

As more employees become aware of their rights and as more disputes are referred to the FWC, it is essential that businesses are equipped with the right systems, policies, and training.

Being proactive, fair and transparent in how you handle flexible work requests will not only help you stay compliant, but also build a workplace culture that is inclusive, responsive, and future-focused.

At Allan Hall HR, we assist businesses in navigating flexible work obligations with confidence. Whether you need help reviewing or developing your policies, training your managers, or responding to specific requests, our experienced team is here to support you. Get in touch with us today at [email protected] or by calling us directly on 1300 916 764 to ensure your business remains compliant and prepared for the evolving workplace.

HR Support Centre Demo

We invite all our clients to explore our complimentary HR Support Centre, designed to help you navigate your employee obligations and stay updated on legislative changes. This valuable resource offers ready-to-use HR templates, best practice guidance, checklists, and access to a vast library of articles on compliance and employee management. Book in a free demo today.

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payroll

Xero Payroll plan updates

Posted on | by Allan Hall

Payroll reinstated to Xero business plans

Payroll and auto super upgrades for Xero Ignite and Xero Grow

Xero has announced that Users will soon be able to pay one person on the Xero Ignite plan (as you could on Xero Starter) and two people on Xero Grow (as you could on Xero Standard). You’ll also be able to process automated super payments on both plans.

What this means for Xero Users 

If you were on Xero before July 2024:

  • If you’ve already moved to either the Xero Ignite or Xero Grow plan and would like to stay on it, there’s nothing you need to do.
  • For those moving to either the Xero Ignite or Xero Grow plan in July 2025, Xero’s current timing stays in place. However, the changes to Xero Ignite and Grow will come into effect before then, so you’ll have the option to switch sooner.   
  • If the enhanced Xero Ignite or Xero Grow plan is a better option for Users than moving up a plan, you can switch plans when Xero alerts you that payroll changes to the two plans are live. The flexibility is yours.

If you joined Xero after 1 July 2024 and you’re on the Xero Ignite, Xero Grow or Xero Comprehensive plans, you may want to take advantage of the changes Xero is making that will allow Users to pay more people on the Xero Ignite and Xero Grow plans.

Xero will reach out to Users directly in coming months once the enhanced plans are available.

CONTACT ALLAN HALL BOOKKEEPING

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payroll

Employers face new reforms with Payday Super

Posted on | by Allan Hall

From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages.

On 2 May 2023 the Australian Government announced that from 1 July 2026, employers will be required to pay their employees’ super guarantee (SG) at the same time as their salary and wages.

This measure is not yet law. Treasury and the ATO will engage with industry and stakeholders on these changes.

On 18 September 2024, the government announced further details, including:

  • Contributions of super. From the start of the measure, employers will be required to pay their employees’ SG at the same time as their salary and wages. They will be liable for the super guarantee charge (SGC) unless contributions are received by their employees’ superannuation fund within 7 days of payday. Payday is the date that an employer makes an ordinary time earnings (OTE) payment to an employee. Each time OTE is paid, there will be a new 7-day ‘due date’ for contributions, with some limited exceptions.
  • Updated super guarantee charge. Where employers fail to pay contributions in full and on time, they are liable for SGC.

    The SGC will be updated and consist of
    • Outstanding SG shortfall: any contributions that remain unpaid when the SGC is assessed. The shortfall calculation will be based on OTE, creating consistency with the calculation of SG contributions. Late contributions paid by an employer before they are assessed for the SGC will reduce the outstanding SG shortfall.
    • Notional earnings: an interest component to put employees in the same position that they would have been had the contributions been received in full and on time.
    • Administrative uplift: an additional charge levied to reflect the cost of enforcement.
    • Once SGC is assessed, additional interest and penalties may apply if the SGC liability is not paid in full.
    • The SGC will be tax-deductible, ensuring the income tax consequences for paying employees’ super are consistent.
  • SBSCH decommission. The Small Business Superannuation Clearing House (SBSCH) will be retired from 1 July 2026. The improvement in payroll software solutions over recent years provides employers with cost-effective and higher quality options for paying superannuation contributions more timely and accurately. We will engage with small businesses ahead of time to guide them in transitioning to a commercial alternative that is fit-for-purpose for Payday Super.
  • SuperStream updates. The deadline for super funds to allocate or return contributions will be reduced to 3 business days, down from 20. The SuperStream data and payment standards will be revised to allow payments made via the New Payments Platform and improve error messaging to ensure employers and intermediaries can quickly address errors.
  • STP updates. Employers will be required to report in Single Touch Payroll (STP) both the OTE and the total super liability for an employee, ensuring the SG can be correctly identified.

More information on the design of Payday Super is available in the Treasury fact sheet.

CONTACT ALLAN HALL BUSINESS ADVISORS

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common employment issues

Getting Ready for the Festive Season

Posted on | by Allan Hall

What Businesses Need to Know

As we quickly approach the end of year, it is important that Employers begin preparing for their end of year shutdown period.

Over recent years there have been a number of changes to employment legislation that apply during this period, and it is important that Employers are aware of these changes. 

1. Managing Employee Leave

If Employers are planning to shut down over the December/January period, managing Employee leave balances should be considered. As of 1 May 1 2023 both Award-covered and award-free Employees can be directed to take accrued annual leave during a ‘shut down’ period, such as between Christmas and New Year.

However, for any Employee who does not have accrued annual leave to cover the shut-down period, they cannot be directed to take unpaid leave.

An employer and employee can:

  • agree in writing for an employee to take a period of unpaid leave; or
  • come to an arrangement, agreed in writing, for an employee to take annual leave in advance, resulting in a negative annual leave balance.

If an employee does not agree to either of the above, they should either be paid their salary/wages based on their employment contract during the shut-down period, or alternatively, you could allow them to work during the shut-down period.

What can Employer’s do to avoid this? Employers should be conscious of whether or not to approve annual leave requests prior to the shutdown period, to ensure that there is a sufficient balance to cover the shutdown period. If required and agreed to, employees could take a period of unpaid leave throughout the year at their request.

2. Notice of Shut Down

In addition to the changes above, there are also updated rules in many Awards regarding the notice to Employees of an upcoming shut down. Employers must provide at least 28 days’ written notice of the temporary shutdown period to all impacted employees.

Employers should check the relevant Award and communicate the planned shut down in line with the Award guidelines. 

3. Working on Public Holidays

For Employers that continue to operate over the festive season, the Fair Work Act stipulates that Employers are obligated to ‘request’ Employees to work on a public holiday before requiring them to do so. Failure to adhere to this requirement could lead to unlawful work assignments and violation of the Fair Work Act.

For an Employee to work on a public holiday, one of these conditions must be met:

  • an Employer has requested the Employee to work the public holiday, and the Employee has agreed to work; or
  • the Employee’s refusal to work a public holiday is deemed unreasonable.

Employers shouldn’t rely solely on standard rostering practices for public holidays and the following actions are recommended: 

  1. Issue a ‘draft roster’ for periods including public holidays, or issue specific requests to team members to work on upcoming public holidays
  2. Provide an explanation as to why you believe the need for the team member to work on the public holiday is reasonable
  3. Provide Employees with the opportunity to agree to work or state their reasons for refusal
  4. Finalise the roster based on Employee responses and consider reasons for refusals
  5. Communicate with Employees if their reasons for refusal are considered unreasonable.

4. Penalty Rates

If Employees agree to working on public holidays, it is important for Employers to be aware of the penalty rates and entitlements that apply to them under the relevant Award. This may include:

  • Additional pay (different to their standard hourly rate)
  • An additional day off or additional annual leave
  • Minimum shift lengths on public holidays
  • Options for Employees to request to substitute a public holiday for another day.

Employers should review the relevant Award and ensure all entitlements and correct rates are paid to Employees. We also have included below the 2024 public holiday dates that apply in all states and territories:

  • Christmas Day – Wednesday 25th December
  • Boxing Day – Thursday 26th December
  • New Year’s Day – Wednesday 1st January

Need assistance

At Allan Hall HR, we have a team of experienced HR consultants. Please call us on 1300 916 764 or contact us here. to discuss any questions you may have regarding the shutdown period and managing your business during this period.

CONTACT ALLAN HALL HUMAN RESOURCES

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Casual Employees or Part time

Casual Employment Changes

Posted on | by Allan Hall

Be aware of changes commencing 26 August 2024 if you employ casuals

What’s Changing?

As a result of the Closing Loopholes legislation passed earlier this year, the Fair Work Act will change effective 26 August 2024 to include:

  • A new definition of ‘casual employee’
  • Restrictions on casuals under specific arrangements being employed under fixed-term contracts
  • A new casual conversion process and employer obligations
  • Increased frequency to provide the Casual Employment Information Statement.

Casual Employee Definition

Under the new definition of ‘casual employee’ introduced to the Fair Work Act, an employee is only a casual if:

  • You can choose to offer work to your employee and it is also the employee’s choice whether or not to accept the work
  • There is no firm advance commitment to ongoing work
  • The employee’s work is described as casual
  • Employees will be paid a casual loading or a specific pay rate.

Conversion from casual to permanent employment 

Casual employees will remain casual until their employment status changes either through:

  • a conversion process or Fair Work Commission order, or
  • commencing work under a new arrangement, following acceptance of an alternative employment offer.

Replacing the existing casual conversion process, employees will be able to notify their employer, in writing, of their intention to change to permanent employment if they meet the following conditions:

  • they have been employed for at least 6 months (or 12 months if working for a small business employer)
  • they believe they no longer meet the requirements of the new casual employee definition.

Casual employees cannot notify their employer of their intention to convert to permanent employment if they:

  • are currently engaged in an ongoing dispute with their employer about casual conversion, or
  • in the last 6 months:
    • their employer refused a previous notification
    • a dispute with their employer about casual conversion has been resolved.

Employers must:

  • consult with the employee prior to responding to the notification, and
  • respond in writing to the employee within 21 days of the employee providing the notification, either accepting or refusing the change. Please note, there is specific information that must be included in the written acceptance or refusal.

Casual Employment Information Statement

From 26 August 2024, as well as providing the Casual Employment Information Statement (CEIS) to new casual employees, employers will also need to provide the CEIS to all casual employees in accordance with the below:

  • for non-small businesses:
    • as soon as possible and then after 6 months of employment, and
    • as soon as possible after 12 months of employment and then every 12 months after that.
  • for small businesses:
    • as soon as possible and then after 12 months of employment.

What should employers do if they employ casual employees?

  1. Review their situation: Employers should review their casual workforce to determine employee status based on the new definition focused on the practical working relationships. 
  2. Update contracts: Update any casual contract templates to remove outdated casual conversion references. 
  3. Check eligibility requirements: If an employee notifies of their intention to convert to permanent employment, check they meet the eligibility requirements, then consult and respond in writing in accordance with the legislative requirements.
  4. Schedule reminders: Employers should schedule reminders to update and issue the Casual Employment Information Statements at the required intervals. 

Need assistance?

At Allan Hall HR, we have a team of experienced HR consultants. Please call us on 1300 916 764 or contact us here to discuss any questions you may have regarding casual employment changes and employee’s eligibility to convert to permanent employment. To learn more about our services, please click here.

CONTACT ALLAN HALL HUMAN RESOURCE

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working from home

New Right to Disconnect for Employees: What you need to know

Posted on | by Allan Hall

Starting on 26 August 2024 for non-small business employers and 26 August 2025 for small business employers, a significant change is coming to workplace relations in Australia.

Eligible employees will now have a new right to disconnect outside of work hours. This change is a result of a push to promote work-life balance and protect employees’ personal time.

Key Points:

  1. Right to Refuse Contact: Employees can refuse to monitor, read, or respond to contact from their employer or a third party outside of their working hours, unless such refusal is deemed unreasonable
  2. Coverage: The right to disconnect includes attempted contact outside an employee’s working hours
  3. Factors for Reasonableness: Several factors determine whether an employee’s refusal is unreasonable, including: 
    • The reason for contact
    • Whether the employee is compensated or paid extra for:
      • Being available to be contacted within a specific period
      • Working additional hours outside their ordinary work hours
    • The nature of the employee’s role and level of responsibility
    • The employee’s personal circumstances, including family or caring responsibilities
  4. Dispute Resolution: Disputes regarding the right to disconnect should be initially discussed and resolved at the workplace level. If unresolved, employees or employers can approach the Fair Work Commission for resolution
  5. Workplace Right: The right to disconnect will be a workplace right under general protection laws, safeguarding employees’ rights under the Fair Work Act
  6. Award Inclusion: By 26 August 2024, all awards will be required to include a ‘right to disconnect term,’ specifying how this new right applies across various industries and occupations.

Note: this change will come into effect for small business employers from 26 August 2025. 

What Should Employers Do?

  1. Review Contracts: Check employment contracts and position descriptions to see if employees are paid with the expectation of being contactable outside normal working hours
  2. Assess Policies: Evaluate and develop current policies and procedures regarding contacting employees after hours
  3. Train Managers: Ensure managers understand the new rules and do not penalise employees for reasonably refusing after hours contact
  4. Inform Employees: Consider providing training and information to employees about their new right to disconnect.

Need assistance?

At Allan Hall HR, we have a team of experienced HR consultants. Please call us on 1300 916 764 or contact us here to discuss any questions you may have in regard to the right to disconnect, how this might impact your business and implementing related policies and procedures. To learn more about our services, please click here.

CONTACT ALLAN HALL HUMAN RESOURCES

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Minimum-Wage-Image

National Minimum Wage rise effective 1 July

Posted on | by Allan Hall

The Fair Work Commission has announced this year’s Annual Wage Review Decision

National Minimum Wage Increase 

Effective from 1 July 2024, the National Minimum Wage will increase by 3.75%.

This means that full-time or part-time employees in receipt of the minimum wage will receive the following rates before tax:

  • $24.10 per hour, and
  • $915.90 per week (based on a 38-hour week for a full-time employee).

This increase will see an extra $33.10 ‘in the pocket’ each week for full-time employees.

This will be effective from the first full pay period on or after 1 July 2024.  For example if your pay period starts on Wednesday, the new rates will apply from Wednesday 3 July 2024.

National Minimum Wage Increase 

Similar to the National Minium Wage increase, all Modern Award minimum rates of pay will also increase by 3.75% on 1 July 2024. 

Most employees are covered by an award, which outlines the minimum pay rates and conditions in various industries and occupations.

If you need assistance determining which award applies to your employees, or the applicable minimum pay rates, please do not hesitate to Contact us.

Changes to Superannuation from 1 July 2024

As a reminder, the super guarantee rate will again rise from 1 July 2024. This will rise by another half percent, taking the minimum super guarantee from 11% to 11.5%.

The super guarantee rate will continue to rise by an additional 0.5% at the start of each financial year, until it reaches 12% in 2025.

Contact Us

At Allan Hall HR, we have a team of experienced HR consultants. To learn more about our services, please click here. Alternatively, please feel free to call us on 1300 916 764 or contact us here to discuss any questions you may have with us in regard to the National Minimum Wage Increase.

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