By Simon Saha

Employers should be aware of an increase in wages under the Clerks-Private Sector Award 2020 and Storage Services Award 2020, commencing from the first full pay period on or after 1 November 2020.

Employers in these sectors will be required to review and update their employees’ wages from 1 November 2020 in accordance with the Fair Work Commission’s Wage Decision. The decision, which was handed down on 19 June 2020, provided for a 1.75% increase to minimum wages, but staggered the increase across three ‘groups’ to reflect the extent to which COVID-19 impacted different industries.

Additionally, employers operating under an enterprise agreement will also need to review their employees’ wages from 1 November 2020, to ensure all employees are being paid at or above the new minimum wage rates.

This update to wages also serves as a timely reminder of the need to regularly review wage rates for all employees, as there has been a significant focus by the Fair Work Ombudsman recently on wage compliance and underpayment liabilities. Employers should conduct an annual review of employee wages and salaries, to ensure they comply with the applicable Award, to avoid the significant penalties that apply for non-compliance.

If you have any questions about this information in this article, please contact HR Assured’s Telephone Advisory Service.

Simon Saha is a passionate Workplace Relations Consultant at FCB Group (HR Assured’s parent company). Simon provides in-depth advice on a range of employment relations matters with a particular interest in underpayments liabilities, models of engagement and compliance audits.