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Is your business ready for 1 July 2017?
The Fair Work Commission has confirmed a 3.3% increase to minimum rates of pay, effective from the first full pay period starting on or after 1 July 2017. The new national minimum wage will be $694.90 per week, or $18.29 per hour, with weekly wages in Modern Awards rounded to the nearest 10 cents.
Remember that the rates of pay, including penalty rates and allowances in applicable Modern Awards will increase. If you have award covered employees that are paid at the Modern Award rates, you will need to you make adjustments to those rates. For employees paid over and above the applicable Modern Awards rates, you should still check the terms of any applicable common law contracts of employment to determine whether you can absorb the increases or are contractually required to pass them on.
If you have an Enterprise Agreement in place, you should ensure that the rates of the pay in that agreement at least meet the new base rates of pay in the relevant Modern Award.
Remember, if you are in the hospitality, fast food and retail industries, there are penalty rates that will also change from 1 July 2017.
Need our advice or support to navigate the Fair Work system and these changes to ensure you are compliant? Contact us at IR Legal Solutions, we actively work with our clients to ensure they are compliant.
