Livestock SA Commodities Member Update May 2022

Livestock SA Commodities Member Update May 2022

Minimum Wage Adjustment 2022

At this time of year, the Fair Work Commission invites submissions for the minimum wage adjustment which invariably is effective from the first pay period on or after 1 July of the year.

The Unions through the ACTU have lodged a Claim for 5% to be applied to the Award Rates. They have since increased it to 5.5% to mirror the projected CPI increases for next year.

Employer groups are seeking between 3% and 3.5%. The Financial Review has forecast an increase of 4%.

The Fair Work Commission is likely to finalise its findings in mid to late June. As soon as the Decision is handed down, we will provide an update for the Pastoral Award 2022 rates.

Small Employers

A small employer is defined under the Fair Work Act 2009 as one who employs 15 or less employees. There are exemptions that apply to small employers that do not apply to larger employers. Examples include

Unfair Dismissal

A small employer with an employee with less than 12 months’ employment is exempt from unfair dismissal claims for that first 12 month period. It is important however that procedural fairness processes are followed and small employers contemplating termination of employment should acquaint themselves with the Small Business Fair Dismissal Code. That Code is available at www.fairwork.gov.au/sites/default/files/migration. The Small Business Fair Dismissal Code is available at : Small Business Fair Dismissal Code 2011 (fairwork.gov.au)

Small employers are not exempt from following procedural fairness principles and if they follow the Code, it should minimise the risk of claims. In any event, the Fair Work Commission does not have jurisdiction to hear unfair dismissal claims which comply with the Code during the first 12 months’ employment.

Redundancies

Should a small employer contemplate declaring a position is no longer required, severance payments or redundancy payments do not apply. However, smaller employers are only required to pay the period of notice. The period of notice is determined by the length of the employee’s service.

Large employers are required to pay both the notice period and in many cases severance payments as well.

All Employers

Superannuation

Superannuation Guarantee Contributions

The Federal Budget 2022 has maintained the Super Guarantee's legislated increase to 12%. The Super Guarantee will increase as follows;

1 July 2021 - 30 June 2022	10.0%
1 July 2022 - 30 June 2023	10.5%
1 July 2023 - 30 June 2024	11%
1 July 2024 to 30 June 2025	11.5%
1 July 2025 - 30 June 2026 and onwards	12%

Threshold of $450 per month.

The $450 monthly earnings threshold for superannuation contributions will be removed on 1 July 2022. Under the change, employers will be required to pay the superannuation guarantee on the wages of employees’ earning less than $450 per month.

If the employee is under the age of 18, and unless that employee is covered by a workplace agreement that states otherwise, the employee will need to work more than 30 hours in a week.

ATO Activity

The Australian Taxation Office advised that it is now scrutinising late payments by employers.

If you have any queries, please do not hesitate to contact me.

Chas Cini

If you have any queries, please do not hesitate to contact us or Chas Cini on 8331 2422 or info@mers.com.au