Changes to the Secure Jobs Better Pay Act!
Photo by Centre for Ageing Better on Unsplash
As of 7 June 2023, it is no longer permissible to include pay secrecy clauses in employment contracts. Essentially, these alterations grant employees the freedom to decide whether they wish to disclose their remuneration, as well as any terms and conditions about their employment that influence their pay.
What is changing?
The new provisions have introduced enhanced workplace rights for employees and future employees, allowing them to:
Share information regarding their remuneration, as well as relevant terms and conditions of their employment that are reasonably required to determine remuneration outcomes, such as working hours.
Inquire about another employee's remuneration and any associated terms and conditions that are reasonably necessary to ascertain remuneration outcomes.
Employees also have a right not to speak about their remuneration, if they do not wish to do so.
Employees can exercise these rights even after they leave their employment.
Since 7 December 2022, any pay secrecy terms found in employment contracts or fair work instruments (such as modern awards, enterprise agreements, workplace determinations, and Fair Work Commission orders) that contradict the new workplace rights will be rendered ineffective.
Significantly, as of 7 June 2023, penalties are now imposed on employers who include pay secrecy terms in contracts of employment or other written agreements with employees.
Next steps for employers
Ensure that terms and conditions of employment are reviewed.
Review internal policies & procedures.
How Infinity HR can support you
We can assist you with reviewing your employment contracts and other written agreements to ensure that your organisation does not breach the new pay secrecy provisions.