Employment Law Update

FWO Uber investigation outcome + minimum wage increase + high income threshold

2 July 2019

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FWO Uber investigation outcome

Please follow the ‘Download PDF’ link above for an Employment Law Update that includes information on the outcome of the Fair Work Ombudsman’s investigation into whether the engagement of drivers by Uber Australia Pty Ltd complied with Commonwealth workplace laws.  You may be surprised to read that the Ombudsman concluded that the “weight of evidence” showed no employment relationship existed between Uber and its drivers.

Minimum wage increase

With effect from the first full pay period commencing on or after 1 July 2019, the minimum wage rates set out in modern awards have increase by 3%.  For employees not subject to a modern award or enterprise agreement, the National Minimum Wage has also increased by 3% to $740.80 per week (or $19.49 per hour).

Employers should carefully review:

  1. the rates of pay and conditions being afforded to their employees who are subject to a modern award to ensure they meet their higher obligations from 1 July 2019; and
  2. any current enterprise agreement to ensure that the base rates of pay for the employees who fall within the agreement are not less than those that would be payable under the relevant modern award.

For those employees who are not covered by a modern award or enterprise agreement, employers should take steps to ensure they are paying those employees an amount of wages not less than the National Minimum Wage for all hours worked from 1 July 2019.

High income threshold

The high income threshold has also been increased to $148,700, with effect from 1 July 2019.

The threshold operates as a limit to an employee’s eligibility to be protected from unfair dismissal under the terms of the Fair Work Act 2009 (Cth).  In particular, if an employee is not covered by a modern award, or if an enterprise agreement does not apply to them, they must have an annual rate of earnings of less than the high income threshold in order to be protected.

For further information, please contact:

Seamus Burke | Director
Jess Phillips | Lawyer

This document contains information only and should not be relied upon by anyone as constituting legal advice.