On 22 June 2023, the Australian Government passed this Act introducing the following key changes to the Fair Work Act 2009 (FWA).
Employee-authorised salary deductions
Previously an employer had to obtain the employee’s written authorisation for each deduction from their pay. Since 30 December 2023, employees can make a single written authorisation to allow their employer to deduct amounts (including amounts that vary from time to time) on a reoccurring basis from their salary if they are principally for the employee’s benefit. The authorisation can be withdrawn by the employee at any time. Previously, the FWA required a written authorisation for each deduction.
Superannuation as an entitlement under the NES
From 1 January 2024 superannuation contributions are an entitlement under the NES.
If employers fail to make superannuation contributions, they will breach the NES which could attract a penalty.
Unpaid parental leave
Since 1 July 2023, the FWA has included greater flexibility for employees taking unpaid parental leave. Employees taking unpaid parental leave can take up to 100 days of their 12-month leave entitlement flexibility during the 24-month period after the birth or placement of their child.
Pregnant employees can also access their flexible unpaid parental leave in the six weeks before the expected date of birth of their child.
Both parents can now also take up to 12 months’ unpaid parental leave at the same time, removing the restriction preventing two parents from taking more than eight weeks of unpaid parental leave at the same time.
Further advice
For employers, it is essential to be across these important changes to Australian workplace laws and understand how they may impact your workforce and your obligations as employer.
MDC Legal is a specialist employment law firm providing advice on all aspects of employment law, including understanding and compliance with the Closing Loopholes amendments.
Get in touch with one of our lawyers today for assistance with understanding these new changes.
