HR Highlight: Employment Changes from 1 July 2014
The recent National Wage Case, which instituted an increase to all Modern Awards, is not the only change that is coming in the employment sphere. From 1 July 2014, there will also be changes to the optional Transitional Arrangement provisions under Modern Awards and the high income threshold and superannuation under the National Employment Standards. This week’s HR Highlight will outline these areas that all employers should be aware of.
From 1 July 2014 the Transitional Arrangements built into most Modern Awards come to an end.
The Transitional Arrangements were instituted as part of the Award modernisation process to allow businesses to slowly progress from existing pre Modern Award rates to the full Modern Award rates.
The transition period completes on 1 July 2014, with all businesses having moved onto the full rates within the Modern Award. ACAPMA Members are reminded that the Quick Reference Guides for the new wage rates have been circulated and that they can call 1300 160 270 for assistance with rates.
From 1 July 2014 the Superannuation Guarantee amount increases from 9.25% to 9.5%.
Businesses are required to pay this increased percentage for all staff who meet the following conditions:
- Are an employee – this includes full time, part time and casual employees
- Are over the age of 18 years
- Are earning more than $450 gross per month
Businesses are required to pay 9.5% Superannuation on Ordinary Time Earnings (OTE).
As with many requirements it is important to remember that individual and enterprise agreements may increase the requirements or modify their application. So it is always important to refer to the employment instrument.
High Income Threshold
From1 July 2014 the High Income Threshold increases. The High Income Threshold plays a role in the determination of eligibility for Award coverage and unfair dismissal application and affects the applicability of several sections of the Fair Work Act.
The High Income Threshold jumps from $129,300 per annum to $133,000 per annum effective 1 July 2014. Businesses should take note of any employment relationships that may fall into this category and ensure that all relationships reflect the appropriate coverage.
Here to Help
ACAPMA Workplace Relations Professionals are available to assist members on 1300 160 270 or you can email email@example.com. ACAPMA members can access resources and can call on the advice and support of the ACAPMAlliance Workplace Relations Professionals on 1300 160 270.
HR Highlights are things to consider, implement and watch out for in your business. They are provided as general advice and you should seek further advice on your situation by calling 1300 160 270 and speaking to one of ACAPMA Workplace Relations Professionals it’s free for members. ACAPMA membership is affordable at only $770 per year for a single site, which represents great value with sites gaining HR advice support and representation as well as a raft of other benefits and discounts. Learn more about ACAPMA membership here.