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Key HR changes from 1 July 2022

By 8 August, 2022June 15th, 2023No Comments

The Vincent Young Employment + Workplace Relations team has updated its Employment + Workplace Relations Guide to reflect the changes for the 2022-2023 financial year.

Download your copy today.


National Minimum Wage

Each financial year, the Fair Work Commission’s (FWC) Expert Panel for wage reviews undertakes its annual wage review. This financial year, the FWC’s decision has resulted in the new national minimum wage being set at $812.60/week or $21.38/hour from the first full pay period on or after 1 July 2022. This constitutes a 5.2% increase and applies to all national system employees who are paid in accordance with the national minimum wage.

Modern Award wages have increased by 4.6%, subject to a minimum increase by $40 per week. Award wage rates above $869.60 per week increase by 4.6%. Award wage rates below $869.60 per week increase by $40 per week. This increase is operative from the first full pay period on or after 1 July 2022, other than awards in the aviation, tourism and hospitality industries which will have an operative date of 1 October 2022.

High Income Threshold

Access to the unfair dismissal regime under the Fair Work Act 2009 (Cth) is limited by a number of eligibility factors, including the imposition of a “high income threshold”. This has the effect of limiting an individual’s ability to make a claim for unfair dismissal once their annual rate of earnings exceeds this threshold (unless a modern award covers the employee or an enterprise agreement applies to them).

From 1 July 2022, the high income threshold has been increased to an annual rate of earnings of $162,000 for dismissals which take effect on or after 1 July 2022.

Maximum Compensation Cap

If an employee is successful in establishing that they have been unfairly dismissed, the FWC may consider awarding compensation. Compensation is considered only after the FWC is satisfied that reinstatement is not appropriate.

Orders for compensation will be reduced if the amount exceeds the compensation cap. The compensation cap is the lesser of:

  • the amount of remuneration received by the employee or that they were entitled to receive (whichever is higher) in the 26 weeks before the dismissal; or
  • half the amount of the high income threshold immediately before the dismissal.

From 1 July 2022, the compensation cap is $81,000.