Pay secrecy

The law gives employees the right to share (or not share) information about their pay and employment conditions.

Pay secrecy terms in employment contracts, awards and agreements can’t be enforced in most circumstances.

Sharing pay and employment conditions information

Employees and future employees have a workplace right to share (or not share) information about their:

  • pay
  • employment terms and conditions that would be needed to work out their pay (such as their hours of work).

Example: Sharing pay information with another employee

Adriana starts a new job working at a childcare centre.

During a shift, Adriana talks to another employee, Greg, about her pay. Adriana shares her hourly pay rate and explains that she is concerned she’s not getting the right pay.

Adriana can share her pay information with another employee as this is her workplace right.

Employees and future employees also have the right to ask other employees (with the same or a different employer) about their:

  • pay
  • employment terms and conditions that would be needed to work out their pay (such as hours of work).

Employees can't be forced to give this information to another employee if they don't want to.

Example: Asking another employee about pay

Kip and Steve are both forklift drivers for a building supply wholesaler.

Kip has concerns about his pay, especially for the hours when he works overtime. Kip speaks to Steve and asks him what pay rate he gets for working overtime.

Kip tells Steve his own hourly pay rate and overtime rate.

Steve isn’t comfortable talking to Kip about his pay rate and says he won’t share this information. He says that if Kip has concerns about his pay he should speak to their manager, Elijah.

Kip has the right to share his pay information with another employee and ask another employee about their pay information. Steve also has the right to not share his own pay information.

Employees can also exercise these workplace rights even after their employment ends.

Protections at work

Employers can't take certain actions because of these workplace rights or because an existing employee has (or has not) exercised or proposed to exercise these rights.

Actions an employer can't take include:

Employers also can't prevent a future employee from exercising these rights.

Learn more about Protections at work.

Example: Sharing pay information and adverse action

Lu is an engineer working for a construction company.

Lu and another engineer discuss their salaries. Lu realises he’s getting paid less than other engineers with the same skills and experience as him who are doing the same work.

At his annual performance review, Lu mentions the difference in salary between him and other engineers performing the same work. Because of this, Lu asks for a pay rise. His manager, David, says he’ll consider it.

The next week, Lu gets called into David’s office. David says Lu won’t be eligible for a pay rise for performance reasons and that he is going to be performance managed. This confuses Lu because he has only ever been given very positive performance feedback, including at his annual performance review with David the week before.

A week later, Lu is relocated to a different office away from the other engineers and taken off some key projects, with no reason provided.

Lu believes he was disadvantaged because he talked with a colleague about their pay.

Lu comes to our website, finds this page, and reads about pay secrecy laws and adverse action. He thinks this situation could be adverse action. He decides to contact the human resources department and raise a complaint.

Exceptions

These workplace rights don’t apply to employees where all the following apply:

  • the employee entered into their employment contract before 7 December 2022
  • the contract contains pay secrecy terms that are inconsistent with these rights
  • the contract has not been changed on or after 7 December 2022.

However, if the contract is changed on or after 7 December 2022, then these rights will apply to the employee after the contract is changed.

Pay secrecy terms

Pay secrecy terms (terms) are rules included in a workplace instrument or employment contract that are inconsistent with employee’s pay secrecy rights.

Workplace instruments include:

There are laws that stop employers including these terms in employment contracts or other written agreements with an employee. If these terms are included in a contract or other instrument listed above, the terms have no effect and can’t be enforced.

However, pay secrecy terms in some employment contracts entered into before 7 December 2022 may still apply. What will determine if these terms are allowed or not, and if they still have effect or not, is:

  • when the contract was made or changed
  • whether the contract included pay secrecy terms when it was made.

Tip: Check what applies to you

A pay secrecy term will only apply to you if your employment contract:

  • contains a pay secrecy term
  • was made before 7 December 2022
  • has not been changed on or after 7 December 2022.

Find information below about what the laws are for pay secrecy and when they start applying:

There can be heavy fines for employers who breach these laws on pay secrecy terms. See Our powers.

New or updated employment contracts and written agreements

Pay secrecy terms can’t be included in employment contracts or other written agreements with employees that are made on or after 7 December 2022.

Example: New employment contract with pay secrecy terms

Samira is thinking about accepting a job as a medical receptionist at her local general practice.

Samira is given an employment contract to sign that says she isn’t allowed to discuss her pay with anyone. A friend tells Samira that they think this term in her contract isn’t right.

Before she signs the contract, Samira decides to check what laws apply on our website.

Samira learns that new employment contracts can’t include terms about pay secrecy from 7 December 2022. She also learns that she has a right to talk about her pay with anyone if she wants to.

Samira talks to the employer about these laws. The employer agrees to take the pay secrecy term out and gives her a new version of the contract to consider.

Employment contracts made before 7 December 2022

Pay secrecy terms in employment contracts entered into before 7 December 2022 will continue to operate, until those contracts are changed.

When a contract is changed, any pay secrecy terms will no longer have effect and can’t be enforced.

An employee with a contract made before 7 December 2022 will still have the right to share (or not share) pay and employment conditions information and be protected from certain actions (such as adverse action) in relation to these rights, if the contract does not have a pay secrecy term.

Example: Existing employment contract with pay secrecy terms

Jonah works in a call centre. He entered into an employment contract in August 2021.

Jonah’s contract has pay secrecy terms that prevent him from discussing his pay (such as his weekly wage and any annual bonuses) with other employees.

Jonah’s pay secrecy terms still apply because he entered into the contract before 7 December 2022 and his contract has not changed after this date.

Any pay secrecy terms in contracts agreed to before 7 December 2022 continue to operate until the contract is changed.

Workplace instruments (awards and agreements)

Workplace instruments (such as awards and agreements) outline minimum pay and conditions for employees. They’re separate from employment contracts and workplace policies.

Pay secrecy terms in a workplace instrument have no effect and can’t be enforced from 7 December 2022. This applies regardless of whether the instrument was made before, on, or after this date.

Example: Enterprise agreement with pay secrecy terms

Jana is a hospital administrator. The hospital has an enterprise agreement which was made in 2021.

The enterprise agreement includes pay secrecy terms that restrict employees discussing their pay with other staff.

From 7 December 2022, these terms have no effect.

Getting help with pay secrecy issues

Issues at work can usually be resolved when employees and employers:

  • communicate
  • make sure they understand the law
  • work together on a solution.

If an employer has incorrectly told an employee that they can’t discuss pay information with others at work, there are steps the employee can take. These steps can also apply if an employee has concerns about whether pay secrecy terms aren’t right in their employment contract or other written agreement.

The employee can:

  • share this page with their employer to confirm that sharing pay and employment conditions information is a workplace right
  • use our information to help work out what rights apply to the employee
  • if the issue isn’t resolved in the workplace, learn how to get our help with your workplace issue
  • seek legal help if we can’t assist or the issue involves an employment contract or written agreement.

Tip: Getting our help with employment contracts

We can only give general advice about legal minimum Fair Work Act requirements or entitlements for an employment contract.

If you need advice about pay secrecy terms in a specific employment contract, or about other terms and conditions in your employment contract, you will need to seek other legal help. Examples include a lawyer or union.

Our powers

We have the power to start court proceedings for alleged breaches of pay secrecy laws. For information about how we perform our compliance and enforcement role, you can read our Compliance and Enforcement Policy.

Source reference: Fair Work Act ss.333B, 333C and 333D

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