Further Minimum Award Wage Increases On 1 October 2022.

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Our Employment and Dispute Resolution teams have outlined the wage increase made by the Fair Work Commission.

What wage increases took effect for certain industries from 1 October 2022, and what should employers do to ensure compliance?

Certain industries, including hospitality, restaurants, clubs, aviation, and tourism, received delayed Award wage increases that took effect on 1 October 2022 rather than 1 July 2022. Employers must review which industrial system and Awards apply to their business, confirm employee classifications, and ensure pay rates meet or exceed the updated minimum wage requirements, including loadings and penalty rates. Employment contracts and workplace arrangements should also be reviewed and updated where necessary. Failure to comply with Award obligations can expose both businesses and their officers to significant penalties.

As part of the 2022 Federal minimum Award wage increase, the Fair Work Commission delayed increases under Awards for several particularly beleaguered industries. These minimum wage increases take effect from1 October 2022, rather than 1 July 2022 (when all other Award minimum wages increased).

The relevant Awards are:

  • Aircraft Cabin Crew Award
  • Airline Operations – Ground Staff Award
  • Air Pilots Award
  • Airport Employees Award
  • Airservices Australia Enterprise Award 2016
  • Alpine Resorts Award
  • Hospitality Industry (General) Award
  • Marine Tourism and Charter Vessels Award
  • Registered and Licensed Clubs Award
  • Restaurant Industry Award

The Federal minimum wage (for Pty Ltd companies, most incorporated associations and foreign entities) increased by 5.2% to $812.60 per week (or $21.38 per hour) from 1 July 2022. Increases to rates under the federal Awards (including those listed above) is be 4.6 percent for wages above $869.60 per week and $40 per week for those below that figure.

It is important that all employers take the opportunity to:

  • Check whether they are in the Federal (national) or State system;
  • Check which Awards (if any) apply to their employees;
  • Work out into which classification each employee falls;
  • Confirm that all employees’ hourly rates exceed the minimum wage (including any casual loading, penalties, and overtime rates);
  • Update any employment contracts or individual flexibility arrangements.

Underpaying an employee or otherwise breaching a modern Award can result in penalties for both an employer and directors or other officers.

Our team is highly skilled and experienced in advising on all aspects of Employment Law and Dispute Resolution. Contact us today if you need advice or representation in this area

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* The information provided in this website serves as a general guide and does not constitute legal advice. It is based on our research and experience at the time of publication. Please consult our knowledgeable legal team for any specific inquiries or advice relevant to your circumstances, as the content may not have been updated subsequently.