On 2 December 2022, the Federal Parliament passed its leading
industrial relations law reforms, in the most significant changes
to the Fair Work Act 2009 (FW Act) since
it was introduced.
In the latest in our series of articles on the major changes
found in the Fair Work Legislation Amendment (Secure Jobs,
Better Pay) Bill 2022 (the Bill), we will
discuss the new prohibition on pay secrecy clauses in employment
agreements and the new rights of employees to discuss their
remuneration with colleagues. We will look at what these changes
mean for employers and EPL/ and statutory liability insurers.
What is changing?
Traditionally, many employers have included pay
secrecy clauses in employment agreements to prohibit employees
discussing their terms of employment and salary information.
Employers generally use such clauses to reduce employee disputation
and agitation about pay rates. The rationale underpinning this is
employees who are not aware of what their peers