Wage Increases Deferred in QLD Public Sector

This alert applies to all public sector employers.

Community Services Industry (Portable Long Service Leave) Bill 2019 (Qld)

Please be advised that the Community Services Industry (Portable Long Service Leave) Bill 2019 (Qld) (the Bill) was passed on 17 June 2020 and commences on 1 July 2020.

In response to the financial impact of COVID-19, the Bill has amended the Industrial Relations Act 2016 (Qld) (the Act) to defer wage increases in the public sector until 2022.

Please note that the Bill also establishes a scheme for the portability of long service leave for workers in the community services industry. Please refer to the Community Services Industry (Portable Long Service Leave) Bill 2019 (Qld) Alert for further information on these changes.

Wage increase deferral

The Bill has inserted a new chapter into the Act that overrides existing pay agreements for the public service sector. This new chapter, however, does not apply to local government sector employers, parents and citizens associations or the Darlin Downs Moreton Rabbit Board.

The Bill states that if a certified agreement provides for a wage increase to take effect during the 2020-2021 financial year, that agreement is taken to be varied to provide that:

  • no wage increase is payable under the agreement during the 2020–2021 financial year; and
  • the 2020-2021 wage increase takes effect on the day that is 1 year from the day the wage increase would, but for this part, have taken effect under the agreement.

The Bill also varies existing pay agreements to retroactively insert a 2.5% wage increase that will come into effect after the 2020-2021 financial year.

In effect, public sector employees will not receive a wage increase in the 2020-2021 financial year but will receive two wage increases of 2.5% in the next financial year.

The exact dates the wage increases will become effective vary depending on the particular certified agreement. The specific dates are set out in the tables in schedules 4A and 4B of the Act.

Please click here to access the full Bill.

Contact

For further information please contact the Law Compliance team:

Phone: 1300 862 667

Email: info@lawcompliance.com.au

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