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Pay Secrecy Clauses

Posted By Brett Pomroy  
24/01/2024
12:10 PM

New reforms have been introduced regarding pay secrecy.  These reforms have introduced new workplace rights concerning pay secrecy clauses in employment contracts and instruments, such as enterprise agreements.

The reforms regarding pay secrecy clauses basically introduce a new workplace right with respect to conditions of employment.  The workplace right that all employees now have a right to ask other employees about their rates of pay.  This is now a right, meaning that it is protected under the General Protections provisions of the FW Act. 

The interesting part is an employee has a right to disclose, but they also have a right not to disclose their pay and or conditions.

This may result in General protection claims being made by an employee toward other employees or even unions.

Given this new workplace right, it is now unlawful to include in a contract of employment or workplace instrument any clauses that would set about trying to prohibit an employee from disclosing their pay.

They have also placed a penalty on an employer if they enter into an agreement with an employee involving pay secrecy of $63,000.

They have not placed any penalty on an employee, should they seek to keep their pay secret.

As this is now a workplace right, we would recommend all employees review contracts and instruments for these types of clauses and make amendments. 

Should you have any questions or require assistance making these amendments, please do not hesitate to contact us for assistance.

Subscription/Panel/Inhouse Services

At Salt Legal, we are always looking at ways to improve on the types of services we provide and the way in which we engage with our clients.

While exploring these, it was identified that some clients were keen to explore the idea  subscription/panel/inhouse options of engagement.  These types of arrangements allow clients a greater flexibility in engaging a law form and allows their employees to simply access legal assistance as required.

The way this works is simple, we agree on the length and duration of services you are seeking and a fixed and agreed fee, which can be invoiced weekly, monthly, yearly or task/matter based. 

These services essentially place a lawyer in your business, one who develops an understanding of your business and a relationship with your employees.

If you think this might be something that interests you, please do not hesitate to contact us for further details.

At Salt Legal, we provide advice and assistance to client in all areas of:

·         Employment law.

·         General business and commercial law or disputes.

·         OHS.

·         Equal opportunity.

·         Workers’ compensation, 

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