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Workplace Relations Updates: Return to the office policies, wage increases and superannuation changes

29 July 2021

From an increase to minimum wages, rising superannuation contributions, to return to work policies - here is everything that has changed, and what your business needs to know.

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COVID-19 restrictions have relaxed and employees are once again returning to the office. For businesses, implementing an office return plan may not always go smoothly. Navigate complexities by leaning on the experts and seeking advice early.

Returning to the office 

Should an issue or concern arise, or a complaint be made, you must be able to manage it through either an informal or formal approach. The approach taken when faced with a complaint is often documented in a policy handbook which allows for consistent and timely action.  

Policy and procedure 

A robust grievance and complaints policy is a valuable tool to enable workplace tensions to be resolved promptly, objectively and as close to the source as possible.  

Businesses which do not have a policy are encouraged to develop and introduce one, keeping in mind business needs. Victorian Chamber members without a policy are welcome to download a policy template via the member tools and templates portal. 

Those who have implemented a grievance and complaints policy may benefit from reviewing the document to ensure it includes an accurate framework for lodging a grievance/complaint and meets its purpose.  

Notwithstanding the above, all modern awards (and enterprise agreements approved from 2010 onwards) contain dispute resolution procedures to handle complaints or grievances. These clauses provide additional details on the process for resolving a dispute internally and typically state that where a matter remains unresolved it may be arbitrated and forcibly resolved externally (i.e., by the Fair Work Commission).  

Handling grievances and complaints 

The process for handling a grievance or complaint lodged by an employee can be a multifaceted and complex process, especially where early, informal conversations have failed. Depending on the nature of the matter, a mediation or workplace investigation may be required. For the best results seek advice early to understand and explore options.    

Requests for flexibility 

With many people still more comfortable working from home, employers are increasingly likely to receive a flexibility request. If your business receives a request for flexibility, including continuing to work from home despite mandating a return to the office, requests will need to be considered on a case-by-case basis.  

Employers have obligations to consider requests for flexible work arrangements under both the Fair Work Act 2009 (Cth) and the modern awards. Requirements include discussing the request with the employee, responding within 21 days and providing a written response if the request is to be refused. In addition, employers will need to balance the inherent requirements of the role and operational needs against discrimination legislation such as the Equal Opportunity Act 2010 (Vic).  

National minimum wage increase

On 16 June 2020, the Fair Work Commission announced a 2.5 per cent increase in the national minimum wage and the minimum wage for each classification of each modern award. The decision was made as part of the Commission’s annual wage review. 

The increase will affect the 122 modern awards differently. Be sure to check the operative date of your modern award. The decision determined different operative dates for different groups of awards as follows: 

  • Group 1 Awards - the increase is effective from the first full pay period that starts on or after 1 July 2021. 
  • Group 2 Awards - the increase is effective from the first full pay period that starts on or after 1 September 2021. 
  • Group 3 Awards - the increase is effective from the first full pay period that starts on or after 1 November 2021. 

The national minimum wage is now $772.60 per week or $20.33 per hour. 

Superannuation changes  

On 1 July 2021, the compulsory superannuation paid on top of ordinary earnings (the Superannuation Guarantee) increased from 9.5 per cent to 10 per cent. For most workers, including those on awards and enterprise agreements, this will most likely increase the total remuneration paid by the employer.  

The effect of the increase on a particular salary package, such as a Total Remuneration Package, needs to be carefully assessed to identify whether the additional 0.5 per cent contribution must be added on top, or whether it can be absorbed into the amount already paid. If it can be absorbed into the salary package, then the employee will experience a decrease in the component covering their wages and an increase in the superannuation component. To determine if there is an obligation to increase the salary package, employers will need to carefully assess the wording of the employment contract and/or applicable industrial instrument such as an enterprise agreement.  

Employers should also note that the superannuation guarantee is scheduled to continue to increase and by 2025 it will be 12 per cent. 

How we can help

Managing and implementing workplace change is not without risk and can be costly. Such costs can increase exponentially if the process is poorly managed. 

Regardless of the size of your business, your industry or the issues faced, our Workplace Relations consultants are experienced change management experts who can help you every step of the way. 

Contact our Workplace Relations Advice Line on 03 8662 5222 to speak to our team about handling employee reluctance to return to the office, or to discuss the process for handling a grievance or complaint. 

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