The Employment Relations Amendment Act is now in force. Whether you're an employer, employee or contractor, these changes significantly affect your rights, responsibilities, and obligations.
There are four key changes:
1. $200,000 income threshold
Employees earning over $200,000 will no longer be able to bring personal grievances for unjustified dismissal. There is a 12 month transition period for existing employees when they won't be affected by this rule change.
2. New contractor gateway test
A new four-part test provides clearer criteria for determining employee vs contractor status.
3. Contributing behaviour
Employees found to have engaged in serious misconduct or whose behaviour contributed to dismissal face significantly reduced or no remedies.
4. Collective agreement changes
New employees are no longer automatically covered by collective agreement terms for the first 30 days.
What this means for you:
Employers: Review high-earner agreements, contractor arrangements, update template agreements for new employees, and train managers on these changes.
Employees: If you earn over $200,000, review your employment terms for new employment now to understand how these changes affect your rights.
These changes are complex and carry significant implications. Contact us for professional guidance.
Full legislation here
