HR LAW ALERT – Pay Secrecy and Zombie Agreements

HR LAW ALERT – Pay Secrecy and Zombie Agreements

Pay Secrecy

From 7 June 2023, pay secrecy terms cannot be included in employment contracts at all. Employers who enter into employment contracts that have pay secrecy terms in them could face penalties. A “pay secrecy clause” is a clause that prohibits (or limits) an employee from disclosing their remuneration to someone else, or asking someone else about their remuneration.

Employers should ensure that any template employment contracts do not have any terms that limit employees from disclosing their remuneration.  If you require a review of your employment contracts, contact HR Law today.

Zombie Agreements

A reminder that today, 7 June 2023, is the last day for employers covered by a pre-2010 agreement (known as “zombie agreements”), to give written notice to all employees who are covered by the agreement about the sunsetting of the agreement on 7 December 2023. This written notice must meet the requirements of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth). 

If you require assistance with drafting this notice, contact HR Law.

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