public holiday
The FWC has decided on backpay obligations for enterprise agreements.
November 23, 2023It isn’t uncommon for enterprise agreements to contain clauses that state pay rises apply from a specific date which may be before the time the agreement is approved by the Fair Work Commission (FWC) and formally commences operation. However, what isn’t common is retrospectively back-paying former employees who worked under the enterprise agreement but resigned before it commenced. However, following the recent case of Murtagh v Corporation of the Roman Catholic Diocese of Toowoomba [2023] FCAFC 172 the position has changed. The Full Court of the Federal Court found that two Catholic school teachers were entitled to pay raises contained in newly approved enterprise agreements, despite both teachers resigning from their employment before the enterprise agreements took effect. Here our experts explain the position as it was before this FWC decision was handed down, why businesses must get enterprise agreements right, and share the important lessons from this case. Explaining the position as it was before this FWC decision For example, an enterprise agreement may state that a pay increase applies from the first full pay period on or after 1 July 2023, despite the...