Key Entitlements

Employing workers in Australia requires a comprehensive understanding of the various entitlements that employees benefit from under the Fair Work Act 2009 (Cth) (FW Act) and other applicable legislation.

Australia has a robust and well-regulated employment framework designed to protect the rights of workers and ensure fair and equitable working conditions. As an employer, it is crucial to be cognizant of these key entitlements to effectively manage your workforce and maintain compliance with Australian employment regulations:

Key Entitlement

What is it?

Entitlement as at 1 July 2023

National minimum wage

 

The minimum amount an employee can be paid for the work that they are undertaking.

$23.23 per hour

Minimum rates of pay under a Fair Work modern award

 

A modern award is a document which sets out the minimum terms and conditions of employment for ‘covered’ employees, and includes, but is not limited to: rates of pay, hours of work, rosters, breaks, allowances, penalty rates and overtime.

5.75% increase to the current minimum wage prescribed under an applicable modern award

Superannuation

 

Money contributed by an employer over the working life of an employee, in theory for employees to live on when they retire from work.

11%

Annual leave

All permanent employees receive paid annual leave (holiday pay) based on their ordinary hours of work.

4 weeks* based on an employee’s ordinary hours of work

*5 weeks for some shift workers

Personal / carer’s leave

 

Permanent employees are entitled to take paid sick/carer’s leave if they or someone in their care cannot work because of a personal injury or illness.

10 days* per year

*pro rata entitlement for part time employees

Long service leave

A period of paid leave after a long period of working for the same employer.

The entitlement is subject to the legislation of the state or territory in which an employee is employed.

Paid family and domestic violence leave

Leave flowing from violent, threatening or other abusive behaviour by certain individuals known to an employee that seeks to coerce or control the employee and causes them harm or fear.

10 days each year


The above list of entitlements is not exhaustive, but provides a high level overview of entitlements.

In light of the increases to some entitlements as at 1 July 2023, employers should take this opportunity to conduct an audit and ensure that contracts of employment, policies and procedures are still legally compliant and wages being paid are aligned with the new increases.


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