If you’re looking for the short answer, it’s no! It is not illegal to discuss your pay rates with colleagues in Australia.
There were significant overhauls to Australian employment laws in December 2022 when the Federal Government passed new industrial relations legislation that made it illegal for an employer to prevent its employees from discussing their pay rates with each other. The main goal of these changes was to reduce pay secrecy in order to assist with closing the gender pay gap and allow employees the right to disclose pay information.
The Secure Jobs, Better Pay Act is a key piece of legislation in this context. It falls under the broader scope of employment and workplace relations, which aims to promote transparency around pay and address gender pay discrepancies. The fair work legislation amendment introduced significant changes to workplace laws, specifically focusing on the prohibition of pay secrecy and the right for employees to openly discuss their pay.
Pay Secrecy Terms
When new workplace rights came into effect in December 2022, pay secrecy terms were effectively rendered useless. Pay secrecy terms are clauses included within an employment contract which prevent an employee from discussing their pay or other working conditions. Prior to December 2022, employers could enforce and uphold secrecy terms written into their contracts of employment with their employees.
New employment laws 2023
As of 7 June 2023, new employment laws state that it is illegal for employers to include pay secrecy terms in employment contracts when offering jobs to prospective employees to promote pay transparency. This legislation aims to enhance gender equity by allowing employees, especially women, to discuss their salaries openly and challenge unfair pay practices. Employers who do include pay secrecy terms in their employment contracts are liable for penalties that can be enforced by Fair Work. It’s also important to be aware that any pay secrecy terms included in contracts made and signed after 7 December 2022 cannot be enforced. By contrast, pay secrecy clauses in employment contracts that were entered into before 7 December 2022 will continue to operate until the contract is terminated or varied. If the contract is varied in any way, the pay secrecy term will no longer have effect.
Employee rights and open pay discussion
With the Secure Jobs, Better Pay Act, employees in Australia have gained new workplace rights, including the freedom to discuss their pay openly with colleagues. This legislation protects employees from any adverse actions by their employers if they choose to disclose their pay and employment terms. Whether it’s asking others about their pay or sharing their own, employees are now empowered to engage in these discussions without fear.
The Act also renders any pay secrecy terms in employment contracts ineffective. This means that any clause in an employment contract that attempts to enforce pay secrecy or restricts an employee’s right to discuss their pay is null and void. Employers are now prohibited from including pay secrecy clauses in new employment contracts, and existing contracts with such clauses are subject to the new protections.
These changes are designed to promote transparency and fairness in the workplace, ensuring that employees can discuss their pay openly and advocate for fair compensation. By eliminating pay secrecy clauses, the Secure Jobs, Better Pay Act aims to create a more equitable work environment for all.
How are new employment laws enforced?
The Fair Work Ombudsman has the authority to start court proceedings against employers for any alleged breach of an employee’s workplace rights. Complaints related to gender pay discrimination can be directed to the Fair Work Ombudsman for investigation. You may also consider engaging an experienced employment dispute lawyer to receive advice about the best way to proceed.
Brisbane woman putting new laws to the test
Natasha Seymour relocated from Brisbane to Melbourne to pursue a career in publishing. She was employed by Melbourne’s oldest bookstore, Hill of Content, on a casual basis. When she noticed that her hourly pay rate didn’t align with the responsibilities she was tasked with, she negotiated a pay rise and back-payment with the store owners. She then shared the news of her pay increase with colleagues in February 2023 – which she was entitled to do, since it was almost two months after the new pay secrecy laws came into effect. However, the bookstore owners terminated Ms Seymour’s employment, stating that she had displayed a “total disregard for confidentiality in anything that occurs between employer and employee”.
Ms Seymour sought legal advice and took the bookstore owners to court earlier this month. Whilst judgment hasn’t yet been delivered, the Brisbane woman’s action in taking her employer to court sends the message that employment laws should be closely adhered to. Perhaps thanks to the internet, workers in today’s age are more aware of their rights and are more likely to seek legal advice when they feel that employment laws have been breached. This case highlights the importance of transparency, as employees may be unaware they are being paid less than their peers for the same job due to restrictions on discussing salaries.
How to find Brisbane’s best employment lawyers
The number one thing that separates good employment lawyers from the best employment lawyers is experience! If you’ve been wronged in the course of your employment, your employment lawyer should be able to demonstrate a wealth of experience that shows that they’ve dealt with cases like yours before. It doesn’t matter if you’re casual or full-time, or whether your issue relates to the application process of employment, something that occurred whilst you were employed or you were unfairly dismissed – a great employment lawyer will have seen it all!
How can Victor Legal help?
If you have an employment dispute that you have some questions about, please reach out to our team! We’re a boutique law firm with a wealth of knowledge and experience on employment law related matters. We’re trusted by clients every day to take their employment matters seriously. Contact us today!
