The Secret’s Out

Remuneration can be a sensitive topic among employees and now that employers can no-longer insist on pay secrecy, it’s not getting any easier.

As our members are aware it is now unlawful to include a term in a contract of employment or workplace policy which seeks to prevent an employee from disclosing to others at their own discretion, information concerning their remuneration.

In relation to this change in workplace law, remuneration includes pay, the number of hours an employee is contract to work and any information concerning commission or bonus payments.

These changes mean that:

  • As the right is defined as a workplace right in the legislation, employers must not engage in adverse action against an employee for choosing to disclose, or not disclose, their remuneration or for asking another employee about their own remuneration.
  • Employers need to ensure that all new contract of employment do not include any terms which prohibit an employee from disclosing the terms of their agreement. For all existing contracts, any term within the agreement prohibiting employees from discussing their remuneration and related terms and conditions of employment, will have no effect.

Significant penalties will apply where an employer continues to insist upon pay secrecy.

If you require further guidance on this new workplace law, please contact REEF’s helpline on 1300 616 170