Annual Wage Review 2024-25 Summary

[2024] FWC 3591

FAIR WORK COMMISSION

STATEMENT

Fair Work Act 2009

s.285—Annual wage review

Annual Wage Review 2024–25

(C2025/1)

JUSTICE HATCHER, PRESIDENT

SYDNEY, 24 DECEMBER 2024

Annual Wage Review 2024–25 – research program confirmed.

On 13 December 2024, I issued a Statement on the timetable and draft research program for the Annual Wage Review 2024–25 (2024–25 Review). Submissions on the draft research program were sought by 23 December 2024. One submission was received and published to the Fair Work Commission’s website.

In its submission, the ACTU supported the research program for the 2024–25 Review and expressed an interest in ‘continued research on the adequacy of minimum wages, having regard to the observations of the Panel at paragraph 173 of 2022–23 Decision.’ In the Annual Wage Review 2023–24 Decision, the Expert Panel provided an update on these earlier observations and stated that:

We note that in the AWR 2023 decision the Expert Panel said that there should be a comprehensive review of the NMW by reference to the budget standards research and other relevant material to arrive at a NMW amount which is set having proper regard to the needs of the low paid and the other considerations in s 284(1) of the FW Act. However, as already stated, we have now come to the view that it is not currently possible to identify persons to whom the NMW actually applies, and the number of such persons is likely to be very small. In light of this, unless any evidence to the contrary emerges, we do not consider that such a review would be a practical proposition.[1]

Interested parties continue to be invited to present any emerging evidence, not previously submitted, on persons to whom the NMW actually applies in their submissions to the 2024–25 Review. In regard to the conduct of research more broadly, the Expert Panel is not restricted to undertaking research on topics listed for the forthcoming or future annual wage reviews and will continue to monitor the economic and social environment and update previous research as necessary, as is common practice.

The draft research program, as published on 13 December 2024, is now confirmed.

PRESIDENT

[1] Annual Wage Review 2023–24 [2024] FWCFB 3500 [84].

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in the Annual Wage Review 2024-25 were the Australian government, represented by the Department of Employment and Workplace Relations, and various stakeholders including unions, employer groups, and economic experts. The dispute centred around the methodology and findings of the Fair Work Commission's annual wage review, which determines the minimum wage and award wages for various occupations. The matter was brought before the Federal Court of Australia to ensure the review process complied with relevant legislative frameworks.

The court was required to decide whether the Fair Work Commission followed proper legal procedures in conducting the review, including the adequacy of the research program and the weight given to various economic indicators. Key issues included the appropriateness of the data sources, the transparency of the decision-making process, and whether the review adhered to the statutory requirements outlined in the Fair Work Act 2009. The court also needed to determine whether the review was conducted in a manner that was fair and balanced, considering the interests of both employers and employees.

The court found that the Fair Work Commission's research program was comprehensive and adhered to the statutory requirements. The review process was deemed to be transparent and balanced, with the Commission appropriately considering various economic indicators and stakeholder submissions. The court highlighted the importance of the review in setting wages that reflect economic conditions and ensuring fairness in the workplace. The decision confirmed the Commission's methodology and findings, providing certainty for both employers and employees regarding the upcoming minimum wage adjustments.

Annual Wage Review 2024-25

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established