FAIR WORK CHANGES - DEC 2024

FAIR WORK CHANGES – DEC 2024

Fair Work – New criminal underpayment Laws

From 01 January 2025, intentionally underpaying an employee’s wages or entitlements can be a criminal offence. This doesn’t include honest mistakes.

What’s changing

FairWork can investigate suspected criminal underpayment offences and refer suitable matters for criminal prosecution. If a person is convicted of a criminal offence, a court can impose fines, prison time, or both.

Code and Guide

FairWork can’t refer a small business employer’s conduct for possible criminal prosecution if they are satisfied that they’ve complied with the Code in relation to an underpayment.

A small business employer will comply with the Code if they don’t intend to underpay their employees. This will be assessed by looking at several factors. These factors aren’t new to compliant employers. Instead, they’re steps many already take as part of good business practice.

Guide to help you understand the Code

Our Guide to Paying Employees Correctly and the Voluntary Small Business Wage Compliance Code can help businesses understand the Code. It offers practical advice and tools, including a handy checklist, examples, and best practice tips.

The PaysOnline Modern Award Rate validation tool assists clients in ensuring employees are on the correct rate for their award and level.

Fair Work – Changes to entry-level Classifications

There are key changes happening for some awards, including:

The changes apply from:

1 January 2025 for most awards
1 April 2025 for the Horticulture Award and Pastoral Award.

The Fair Work Commission (the Commission) has made changes to these awards as part of its Review of C14 and C13 rates in modern awards. The Commission is the national workplace relations tribunal. They review awards to ensure they provide a fair and relevant minimum safety net of terms and conditions.

Find out if your award is affected at List of affected awards. Make sure you also check whether the changes take effect from 1 January or 1 April 2025 for you.

We’ve updated our Pay and Conditions Tool and pay guides with the new rates.

Introductory classifications can only apply for a limited time

Some awards currently contain pay rates that are less than the National Minimum Wage. These are usually pay rates that apply to an introductory classification or entry-level job.

Introductory classifications are called different names including ‘C14’ or ‘introductory’ and sometimes ‘Level 1’. These classifications typically only apply on a temporary basis.

From 1 January or 1 April 2025, introductory classifications in affected awards can only apply for a limited time.

Introductory classifications apply to the first stage of a job. The first stage of a job includes:

an initial induction period
time spent undertaking training, or
enough time to gain basic skills and experience required for the job.

All employment classifications that aren’t introductory classifications must be paid at least the National Minimum Wage.

The new maximum time limit for introductory level classifications varies between awards but is never longer than 6 months.

Some awards allow an employee to progress to the next classification before they’ve reached the maximum time limit for the introductory classification.

This may be based on the employee demonstrating their competency or achieving a required qualification. Employees will generally move to a higher classification based on what happens first.

Quick Onboarding – Flexibility for Mandatory requirements

You can now set up additional items that employees MUST complete before their onboarding can be finalised. Currently, the mandatory items are Personal Details and Bank Accounts.

Clients who have the flexibility to make certain information mandatory before an employee can be finalised in the system. This can be basic information such as tax, super, and bank details. For clients who use the PaysOnline Human Resources feature (Enterprise+ plan) can also ensure legal requirements are also provided. This can include (not limited to):

Employment Contracts acceptance
Copies of Licences
Proof of Qualification
Next of Kin details

We understand all business requirements are different, which is why we can customise to meet individual requirements.