Changing Pay Secrecy to Transparency in 2023

/ Contracts, Fair Work - NES, Workforce / By
​In December 2022 a range of reforms occured to the Fair Work Act.  One of the changes is to start removing the effect of any pay confidentiality clauses in employment contracts.Unless there is a specific clause in the employment contract stating otherwise, from 7 December 2022 existing and future employees have the right to decide to share or not share information about:

  • their pay
  • their employment terms and conditions that would be needed to work out their pay, such as their hours of work.

Employees cannot be restricted from asking other employees about these matters, at the same workplace, or anywhere else, or after they leave their employment.

However, employees cannot be forced to share this information with another employee if they don’t want to.

Any specific pay confidentiality clauses in contracts or written agreements made before 7 December will no longer apply when the contract is varied, updated or replaced in any way.  From 7 June 2023, Employers with pay confidentiality terms in new employment contracts or agreements created or varied after 7 December 2022 could face penalties if investigated by the Fair Work Ombudsman.

For more information go to: Pay secrecy – Fair Work Ombudsman

No doubt there will be more information on these changes emerging throughout the year. This may be a big impact “on paper” but of course many workplaces know the reality has always been that  employees will inevitably discuss their pay anyway.