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ARTICLE · 09 MAY 2023

Pay secrecy terms in employment contracts are illegal

Hall Payne Lawyers
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It is illegal for employers to use pay secrecy terms in employment contracts from 7 December 2022.

AustraliaEmployment and HR
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Recent changes to pay secrecy laws in Australia mean that it will be illegal for employers to use pay secrecy terms in employment contracts from 7 December 2022. Such clauses usually seek to stop employees discussing how much they are paid, or bonuses, with their colleagues.

The Secure Jobs, Better Pay Act added provisions to the Fair Work Act 2009 that protect employees' rights to discuss, or not discuss, their pay with any other person, including work colleagues.

The new law also prohibits the use of pay secrecy clauses in contracts of employment, with heavy fines for employers who breach the prohibition. The upshot of these changes is that everyone will soon be free to discuss their pay with whomever they like.

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