Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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New Industrial Manslaughter Laws Introduced in Victoria

New Legislation Enacted

Author: Naomi Seddon, Shareholder - Littler United States

In November 2019, the Victorian parliament passed the Workplace Safety Legislation Amendment, which is aimed at punishing employers for negligent action or inaction resulting in the death of an employee or member of the public. This legislation will come into effect on July 1, 2020, and it amends the Occupational Health and Safety Act 2004 to create two new offenses relating to “workplace manslaughter.” The new laws will provide that a person (including a corporation or their officers) will be guilty of “workplace manslaughter” if they: engage in negligent conduct; and that conduct amounts to a breach of an OHS duty owed to another person; and that conduct causes the death of another person. Penalties for breach will carry a maximum term of 20 years imprisonment and a legal entity can be subject to fines of approximately $16 million.

2020 Modern Award Changes

New Legislation Enacted

Author: Naomi Seddon, Shareholder - Littler United States

The Fair Work Commission (FWC) has made changes to the annualized salary provisions, affecting 19 modern awards that include annualized salary clauses and three awards that have not previously included such clauses but will now have new clauses inserted. These new changes, which came into effect on March 1, 2020, also introduce additional obligations on employers such as new hours recording obligations and auditing requirements to ensure that employees are not underpaid resulting from annualized salary arrangements. Other key changes include the following: notifying employees in writing about salary; employment agreements specifying amount of overtime per pay period; reconciliation yearly, and if there are discrepancies, the shortfall must be paid to the employee within 14 days; and employers must keep accurate time and wage records for all employees. It is important to note that one of the awards that has been amended in this manner is the Clerks Private Sector Award 2020. The Clerks Award changes will therefore impact almost all employers in Australia as it applies to all clerical and administrative employees. Employers should therefore review their employment agreements and HR policies and practices immediately to ensure compliance with the new laws.

Australia’s Superannuation Laws: 2020 Changes

New Legislation Enacted

Author: Naomi Seddon, Shareholder - Littler United States

On January 1, 2020, the Treasury Laws Amendment came into effect. The relevant changes to the Superannuation Act are as follows: amounts that an employee salary sacrifices to superannuation cannot reduce an employer’s guarantee charge, and sacrificed amounts do not form late contribution an employer makes that are eligible to be offset against the guarantee charge; an employer must contribute at least 9.5% of an employee’s ordinary time earnings base (OTE) to a complying superannuation fund or retirement savings account; and if an employer has a shortfall, the amount is calculated by reference to the employee’s total salary or wages base and any amounts sacrificed into superannuation that would have been salary or wages, but for the salary sacrifice arrangement. Employers should review their current payroll practices and HR policies to ensure compliance with these changes.

Changes on the Horizon for Employee Equity Schemes in Australia

Proposed Bill or Initiative

Author: Naomi Seddon, Shareholder - Littler United States

The Government has announced that it plans to review the tax treatment of employee equity schemes in Australia. The House of Representatives Standing Committee on Tax and Revenue has commenced an inquiry as many technology companies have indicated tax treatment as a factor to why companies are moving off-shore. Currently employers can gift $1,000 of shares to each employee earning less than $180,000, without incurring any tax consequences for the business or individual. In some cases employees will incur tax immediately upon grant. In 2015, the tax laws changed, specifically targeting start-ups, so that employee options and rights can be taxed at the time of sale in certain circumstances, but there is a 10% cap on individual employee options among other issues. For example, many companies calculate the exercise price attached to the options to accommodate for the tax that may be payable by employees, which creates an inaccurate valuation. The inquiry is still in progress.

Employer Obligations in Times of Emergency Situations: Bushfires, Floods and COVID-19

Trend

Author: Naomi Seddon, Shareholder - Littler United States

While the world is currently grappling with how to handle COVID-19, Australia has been hit particularly hard due to recent bushfires and dangerous flooding. Under the model WHS laws, an employer has a primary duty of care to take steps to ensure worker health and safety. Employers need to keep their employees informed about the situation and the safety measures that are in place, keeping vulnerable employees in mind. Employers are permitted to “stand down” employees during natural disasters and emergencies that require closure. If employers have no applicable enterprise agreement during stand down, an employee does not need to be paid but the employee will continue to accrue leave in the usual way. Employees should be directed to take accrued and unused annual leave before they are placed on unpaid stand down. Employers should also be mindful there is no breach of antidiscrimination laws on the basis of illness/medical condition and on the basis of association, especially when putting plans into effect.