As the end of financial year approaches, employers often conduct pay and performance reviews. Review time represents a valuable opportunity to ensure employment agreements are current and accurately reflect the agreement with employees.
This is particularly important for long standing employees who have advanced their career with a business but whose employment contract has not been updated. When an employee’s salary or role is reviewed or an employee is promoted, it is important to ensure that the employment agreement is updated and appropriate for a more senior role.
Employers should be careful about using old template agreements. Changes to the Fair Work Act last year mean that employers must not require employees to keep their pay and terms relating to their employment confidential. From June 2023, employers who include pay secrecy clauses in their employment contracts could face financial penalties.