SDA BID TO LIFT JUNIOR RATES

The Fair Work Commission (FWC) will, by the end of the year, hold a 3-4 week hearing of a SDA union bid to lift junior rates in the retail, fast food and pharmacy awards for under-18 workers and abolish them altogether for adults, after employers sought more time to respond to the "most significant proposal" to target these workers.
 
According to amended directions published this week, the FWC will list a full bench hearing between September and December after granting an Australian Industry Group request for a 6 week extension to file their material.
 

REMINDERS

MINIMUM WAGE INCREASES FROM 1 JULY 2025

The Fair Work Commission (FWC) usually hands down the National Minimum Wage decision in early June, with the increase to take effect from the first pay period on or after 1 July.
 
In 2024 the wage increase was 3.75%, and in 2023 increase was 5.75%.
 

INDEPENDENT CONTRACTOR CHANGES

There have been changes to definitions and protections for independent contractors.  These changes started on 26 August 2024.
 
Refer to link for further information.

• MYTH - If a worker has an Australian Business Number (ABN), they are an independent contractor and minimum pay rates don’t apply.

• FACT - Having an ABN does not automatically make a worker an independent contractor. Fair Work inspectors apply tests of fact and law to determine whether a worker’s correct classification is as an independent contractor or an employee. Whether an employer has labelled a worker as a contractor and required them to obtain an ABN is not conclusive.
   

NO MORE NON-COMPETE CLAUSES

The Government announced plans as part of the 2025-26 Federal Budget to reform non-compete restraint of trade clauses in Australia.
 
The Government plans to ban non-compete clauses for workers who earn less than the high-income threshold prescribed under the Fair Work Act.
 
The Government’s proposal also includes plans to reform Australian competition laws to ‘close loopholes’ in competition law that currently allow businesses to: 

• fix wages by making anti-competitive arrangements that cap workers’ pay and conditions, without the knowledge and agreement of affected workers; and
• use ‘no-poach’ agreements to block workers from being hired by competitors.

 
The Government has said that it will consult on the changes, which will take effect from 2027, following the passage of new legislation and operate prospectively.   The Government also flagged possible changes to non‑solicitation clauses for clients and co‑workers, and non‑compete clauses for high‑income workers.

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