Pay secrecy is when workers are banned from talking about how much they earn with their coworkers, or from asking others about their pay.
It means that in workplaces where some workers are paid less than others for the same job, they often won’t know about it – or if they do, they can’t act without repercussions.
Pay secrecy can lead to inequality at work and is a big contribution to Australia’s gender pay gap.
In late 2022, the Fair Work Act was amended to remove pay secrecy terms in employment contracts, giving employees the right to share, or not share, information about their pay or employment terms and conditions.
This information could include pay, hours of work or terms and conditions within their own employment agreements.
Employees can’t be forced to give this information to fellow employees or future employees if they don’t want to. Employee can also exercise these rights even after they leave their employment.
What does this mean for employees and employers?
Employers can not take adverse action against an existing of future employee because of these rights, or to prevent an existing or future employee from exercising these rights.
New employment agreements and Enterprise Agreements made after 7 December 2022 are not allowed to contain pay secrecy clauses.
These new laws are empowering employees to challenge pay discrimination and wage inequality in their workplace, ensuring workers are paid fairly.
Kommentare