Sources of rules and practice

Overview

Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.

National legislation and common law employment contracts are the main sources of law governing executive compensation and employee benefits. The legislative framework includes the Corporations Act 2001 (Cth) (Corporations Act), which deals with disclosure requirements and termination benefits limitations, the Fair Work Act 2009 (Cth) (Fair Work Act), which establishes minimum workplace entitlements for all employees, including executives, and anti-discrimination laws prohibiting discriminatory conduct at all stages of the employment relationship from recruitment to termination. The Competition and Consumer Act 2010 (Cth) may also apply to the recruitment of employees, including executives, with respect to any misleading or deceptive conduct during the recruitment process.

Enforcers

What are the primary government agencies or other entities responsible for enforcing these rules?

The Australian Securities and Investments Commission is Australia’s corporate, markets and financial services regulator. The Fair Work Ombudsman and the Fair Work Commission are the principal agencies involved in the enforcement of minimum employment standards.

Governance

Governance requirements and shareholder approval

Are any types of compensation or benefits generally subject to specific corporate governance requirements or approval by shareholders or government agencies? What is the general process for obtaining approval?

Disclosure of executive remuneration and termination benefits are subject to corporate governance requirements. The Corporations Act requires that the annual directors’ report include a remuneration report, discussed in more detail in question 6. Pursuant to the Corporations Act and associated Corporations Regulations 2001, executive termination benefits are capped at an amount equivalent to 12 months of an executive’s base salary. Any termination benefits, which include any payments made to the executive exceeding the cap require shareholder approval.

Consultation

Under what circumstances does the establishment or change of an executive compensation or benefit arrangement generally require consultation with a union, works council or similar body?

The schemes in some European countries for trade union and works council board-level involvement do not exist in Australia.

Prohibited arrangements

Are any types of compensation or benefit arrangements prohibited either generally or with respect to senior management?

The Corporations Act requires member approval for giving financial benefits to any related parties, such as a director. The ‘giving of a financial benefit’ is broadly defined to include giving or providing the related party with finance or property or buying an asset from or selling an asset to the related party, and therefore includes such arrangements as loans. However, member approval is not required should the giving of the benefit be on terms that are reasonable in the circumstances if the company and the related party were dealing at arm’s length, or the benefit is remuneration to a related party as an officer or employee.

Rules for non-executives

What rules apply to compensation and benefits of non-executive directors?

Non-executive directors are not employees of the company and therefore will not be entitled to be paid a salary. However, they may be entitled to remuneration (often referred to as ‘directors’ fees’), for the work they carry out.

The Corporations Act provides that the directors of a company are to be paid the remuneration that the company determines by resolution. A company must disclose the remuneration paid to each director if the company is directed to do so by members with at least 5 per cent of the votes cast at a general meeting, or by at least 100 members who are entitled to vote at a general meeting. In the case of public companies, shareholder approval must be obtained for payments made to directors unless the payment is ‘reasonable’ remuneration.

The Australian Securities Exchange (ASX) Listing Rules further require that shareholders of ASX-listed companies obtain approval to increase the remuneration payable to non-executive directors.

Disclosure

Mandatory disclosure of executive compensation

Must any aspects of an executive’s compensation be publicly disclosed or disclosed to the government? How?

The Corporations Act requires that the annual directors’ report include a remuneration report for any individual who falls within the definition of ‘key management personnel’, being persons having authority and responsibility for planning, directing and controlling the activities of the corporation or group. This obligation includes reporting on the board’s policy for determining the nature and amount of remuneration of the key management personnel, any performance conditions, and any options granted. The Corporations Act and ASX Listing Rules also require continuous disclosure to the ASX of any information that may have a material effect on the price or value of the entity’s securities. This may include the terms and arrangements for executive appointments.

Employment agreements

Common provisions

Are employment agreements required or prevalent? If so, what provisions are common? Are any terms prohibited or unenforceable?

While contracts of employment do not technically have to be in writing, in the case of executive employment it would be unusual for there not to be some form of written agreement. Terms may also be implied into a contract by fact, custom or law. As employees, executives will be subject, as a matter of law, to:

  • implied duties of good faith and fidelity;
  • to work with skill and diligence; and
  • to obey lawful and reasonable orders.

Common provisions in executive employment agreements include:

  • the nature of the position and duties attached;
  • hours of work;
  • remuneration structure;
  • performance indicators;
  • discretionary entitlements such as bonuses and incentives;
  • termination and notice provisions;
  • obligations regarding confidentiality;
  • intellectual property; and
  • restrictive covenants.

Restrictive covenants, or restraints of trade, are void on public policy grounds unless they go no further than is reasonably necessary to protect the company’s legitimate interests. See further under questions 32 to 34.

If a contract includes provisions for the payment of termination benefits that contravene the prohibitions in the Corporations Act, the provisions in the contract will not be enforceable.

Terms which contravene the National Employment Standards (NES) set out in the Fair Work Act, or which contravene state or federal discrimination laws, will not be enforceable.

Incentive compensation

Typical structures

What are the prevalent types and structures of incentive compensation? Do they vary by level or type of organisation?

Executive remuneration commonly has a substantial component of performance-related compensation. Generally, this is structured in the form of short-term and long-term incentive plans. The balance between these components will depend on the particular financial and commercial circumstances of the company, as well as its short-term and long-term goals.

Restrictions

Are there limits generally on the amount or structure of incentive compensation? Are there limits that adversely affect the tax treatment of the compensation relative to the employer or the executive?

Generally, the amount or structure of incentive compensation payable to an executive is regarded as a matter for each company to determine. There is, however, capacity for shareholders to express their views on remuneration at the annual general meeting (AGM). Under the Corporations Act a listed company must put to a vote at its AGM a resolution that the remuneration report be adopted. The vote on the resolution is only advisory, but can trigger the ‘two strikes’ procedure where 25 per cent of the votes cast oppose adopting the report. Restrictions apply to the capacity of key management personnel whose remuneration is included in the remuneration report, or persons closely related to them, in voting on such a resolution.

Deferral

Is deferral and vesting of incentive awards permissible? Are there limits on the length or type of vesting and deferral provisions?

Deferral and vesting of incentive awards is permissible, with staggered vesting conditional on achieving certain performance conditions a common practice. We are not aware of any minimum or maximum vesting periods.

Are there limitations on the individuals or groups eligible to receive the compensation? Are there aspects of the arrangement that can only be extended to certain groups of employees?

We are not aware of any limitations on the groups of employees eligible to receive incentive-based compensation.

Recurrent discretionary incentives

Can it be held that recurrent discretionary incentive compensation has become a mandatory contractual entitlement? Is this rebuttable?

Where an incentive payment, such as a bonus, is purely discretionary, the employer is subject to an implied contractual obligation not to exercise that discretion capriciously or irrationally. In order for a discretionary incentive to become a mandatory contractual entitlement, the circumstances in which this would occur would need to be clearly specified in the contract of employment or be established by some form of undertakings or assurances given.

Effect on other employees

Does the type or amount of incentive compensation awarded to an executive potentially affect the compensation that must be awarded to other executives or employees?

The type or amount of incentive compensation awarded for a particular incentive does not directly affect the compensation payable to other executives or employees. The requirement for disclosure through the remuneration report, however, imposes a level of transparency and comparability that may have an indirect impact.

Mandatory payment

Is it permissible to require repayment of incentive compensation under certain circumstances? Are there circumstances under which such repayment is mandatory?

Repayment of incentive compensation may be permissible if appropriately provided for by an executive’s employment contract. The ASX Corporate Governance Council publishes best practice recommendations regarding corporate governance in the form of its Corporate Governance Principles and Recommendations. These state that disclosures regarding the remuneration of executive directors and other senior executives should include a summary of the entity’s policies and practices regarding the deferral of performance-based remuneration and the reduction, cancellation or clawback of performance-based remuneration in the event of serious misconduct or a material misstatement in the entity’s financial statements.

Can an arrangement provide that payment is conditioned on continuing employment until the payment date? Are there exceptions?

Yes. Arrangements can also expressly provide that an executive is entitled to be paid the incentive payment, regardless of whether he or she is still employed by the company on the payment date. This will depend on the terms of the arrangement.

Equity-based compensation

Typical forms

What are the prevalent forms of equity compensation awards in your jurisdiction? What is a typical vesting period? Must the arrangements be offered to a broad group of employees, or can the employer select the participants?

Australian companies often link part of the remuneration of executives to the financial market performance of the company in the form of shares or options. While there is no set practice as to the typical length for deferring the entitlement, vesting periods of between one and three years are common. Some plans also provide for staged entitlements in tranches linked to the particular executive meeting performance targets over a range of time periods.

Some companies may also offer their employees the opportunity to buy shares in the company, via an Employee Share Scheme. Employee Share Schemes must comply with any disclosure requirements in the Corporations Act.

Must equity-based compensation be granted by the company’s board of directors (or its committee) or can the authority be delegated to officers or employees of the company? Are there limitations or requirements that apply to delegation?

The offer of securities to investors, including to employees, is regulated under Chapter 6D of the Corporations Act. Authority to issue shares will depend on the company’s constitution. Delegation limitations or requirements are taxation matters and outside the scope of our expertise.

Tax treatment

Are there forms of equity compensation that are tax-advantageous or disadvantageous to employees or employers?

Employee share schemes (ESSs) may structure equity compensation in different forms. The type of scheme offered will generally determine the applicable tax treatment, with the default position being that such interest will be taxed in the income year in which the interest is received. Concessional tax treatment is available for employees who have received ESS interests under a taxed-upfront scheme if they also meet an income test of earning A$180,000 or less.

For employees who have acquired their ESS interests under salary-sacrifice arrangements, or where there is a real risk of forfeiture under the conditions of the ESS, these interests will be taxed in the income year that the deferred taxing point occurs. The deferred taxing point for a share is the earliest of the following:

  • 15 years after the employee acquired the share;
  • when the employee ceases the employment in relation to which he or she acquired the share;
  • when there is no real risk of forfeiture; or
  • when the ESS no longer genuinely restricts the disposal of the share.

If ESS interests have not been granted at a discount, the benefits given to employees may be taxed under other provisions of tax law, such as capital gains tax.

Registration

Does equity-based compensation require registration or notice? Are exemptions, or simplified or expedited procedures available?

The offer of securities to investors, including to employees, is regulated under Chapter 6D of the Corporations Act. The Corporations Act requires that, unless an exemption applies, offers must be made under a disclosure document. Exemptions include offers made to senior managers of the entity and certain small-scale offers. In addition, an ESS annual report must be provided to the Australian Taxation Office after the end of each financial year.

Withholding tax

Are there tax withholding requirements for equity-based awards?

Withholding tax may apply under a certain ESS where the employee has not provided a tax file number or an Australian business number by the end of the relevant financial year. An obligation to withhold tax may also arise with respect to non-resident participants in the scheme.

Inter-company chargeback

Are inter-company chargeback agreements between a non-local parent company and local affiliate common? What issues arise?

In the case of stock options granted to employees of a local affiliate in a non-local parent company, a recharge (chargeback) agreement can provide that the local company agrees to reimburse the parent company for the costs associated with the equity-based compensation issued to its employees. This can be advantageous from a taxation treatment perspective, because it ensures the cost is attributed to the entity in which case a deduction may be claimed. A local tax deduction may be available in Australia if a recharge agreement is in place.

Stock purchase plans

Are employee stock purchase plans prevalent or available? If so, are there any frequently encountered issues with such arrangements?

Employee stock purchase plans are available, with the most frequently encountered issue with such arrangements being the taxation treatment of such interests.

Employee benefits

Mandatory and voluntary employee benefits

Are there any mandatory benefits? Are there limits on changing or discontinuing voluntary benefits that have been provided?

The Fair Work Act sets out the NES, being the minimum standards of employment applicable to all employees, including executives. These include:

  • maximum weekly hours;
  • requests for flexible working arrangements;
  • parental leave and related entitlements;
  • annual leave;
  • personal or carer’s leave and compassionate leave;
  • community service leave;
  • long-service leave;
  • public holidays;
  • notice of termination and redundancy pay; and
  • Fair Work Information Statement.

Voluntary benefits may be provided over and above the standards set out in the NES. The capacity to limit such voluntary benefits is dependent on whether they have a contractual status, and the scope for variation under the contract of employment.

Typical employee benefits and incentives

What types of employee benefits are prevalent for executives? Are there tax or other financial incentives or disincentives for such employee benefit arrangements?

Common forms of remuneration benefits paid to executives include salary, superannuation, bonuses, and termination benefits. Other non-monetary benefits may include the provision of mobile phones, company vehicles, housing and payment of health insurance or school fees for dependants. Employers pay fringe benefits tax (FBT) on certain benefits provided to their employees or their employees’ associates, such as the use of a work car for private purposes.

Termination of employment

Rules for termination

Are there prohibitions on terminating executives? Are there required notice periods? May executives be dismissed without cause?

There are no specific prohibitions on terminating executives. The circumstances in which an executive’s employment may be terminated are often governed by the terms specified in her or his contract of employment. To end employment, an employer must give notice in writing, or provide payment in lieu of notice. Minimum statutory notice periods apply under the Fair Work Act, based on length of service. A longer notice period may be specified in an executive’s contract of employment to reflect the seniority of the position. In the absence of an express provision, a term may be implied requiring reasonable notice. Subject to satisfying the notice requirement, executives can be dismissed without cause.

Mandatory severance pay

Are there statutory or mandatory minimum severance requirements? Are there any other mandatory, post-employment benefits?

The Fair Work Act sets out a scale of severance pay based on years of service as the minimum entitlement for all employees. This could extend to executives, although they may be entitled to a more generous amount payable on severance pursuant to their contract of employment or any enforceable policy documentation, or as part of a negotiated settlement. Under the statutory scheme, the amount of severance pay is based on the base rate of pay for ordinary hours of work, thereby excluding bonuses and other discretionary entitlements. For service prior to the commencement of this regime in 2010 to be counted, the employee must have had an existing entitlement to redundancy pay under either an industrial instrument, contract or policy.

Typical severance pay

What executive severance payment level is typical?

Under the Corporations Act termination benefits for any employee who holds a ‘managerial or executive office’ are capped at an amount equivalent to 12 months of the executive’s ‘base salary’, with any termination benefits exceeding the cap requiring shareholder approval. Where the executive has been employed for three years or more this is the average annual base salary for the past three years of employment. The Corporations Regulations 2001 (Cth) defines ‘base salary’ to include:

  • non-performance-based benefits paid in the relevant period (which is expressed as including salary, fees and short-term compensated absences, short-term cash profit-sharing and other bonuses, non-monetary benefits and other short-term employee benefits);
  • a superannuation contribution that is not performance dependent and is paid in the relevant period;
  • a share-based payment that is not performance dependent, is specified in column 3 of item 11 in the table in sub-regulation 2M.3.03(1) of the Regulations, and is paid in the relevant period; and
  • a fringe benefit liability or prospective liability.

In order to satisfy the requirement for member approval the benefit must be approved by a resolution passed at a general meeting of the company and, if the company is the subsidiary of a listed domestic corporation, of the listed corporation.

The ASX Listing Rules prohibit payment of termination benefits to any officer of the entity in circumstances where a change in the shareholding or control of the company has occurred.

Whether a pro rata incentive is paid in the termination year depends on the manner in which the incentive is structured and the nature of the discretion involved, if any. For example, if the incentive is based on achieving specified milestones progressively throughout the year, then those that have already been achieved will be payable. Others may be subject to the exercise of discretion, which cannot be exercised capriciously or irrationally.

Reasons for dismissal

Are there limits on dismissal for ‘cause’? Are there any statutory limits on ‘constructive dismissal’ or ‘good reason’? How are ‘cause’ or ‘constructive dismissal’ defined? Are there legal or customary rules relating to effecting a termination for ‘cause’ or ‘constructive dismissal’?

An executive’s employment may be terminated without notice for serious misconduct, such as dishonesty, fraud or other serious conduct that significantly affects the employer’s interests, operations or reputation, so as to amount to a repudiatory breach of contract. Summary termination in such circumstances arises as a matter of common law, although many employment contracts will also contain a specific clause to this effect.

In Australia, employees may challenge a termination of employment that is harsh, unjust or unreasonable. While the salary cap that applies to this regime often excludes executives, they will have access to such a claim if they earn below the threshold or their employment is covered by an award or enterprise agreement. Terminations for cause are generally regarded as those in which the conduct or capacity of the individual or the economic circumstances of the employing entity warrants termination, and appropriate procedural fairness in implementing a decision to terminate has been followed.

‘Constructive dismissal’ arises in the Australian context where the repudiatory conduct of the employer entitles the employee to accept the employer’s fundamental breach and resign. Such a forced resignation is still regarded as a termination at the employer’s initiative for the purposes of the unfair dismissal regime.

Alternatively, the circumstances surrounding an executive’s termination may give rise to a claim that the general protections provisions of the Fair Work Act have been breached. An example of such circumstances includes where some form of adverse action is taken against an executive who has exercised a workplace right, such as the right to enquire about an employment-related entitlement. The salary cap applicable to unfair dismissals does not apply to the general protections provisions of the Fair Work Act.

Gardening leave

Are ‘gardening leave’ provisions typically used in employment terminations? Do they have any special effect on benefits?

‘Gardening leave’ provisions are common for senior management employment. Executives may be put on gardening leave, requiring that they not attend the workplace or provide any services while they are serving out a period of notice. The ability to instigate this arrangement is usually based on an express term in the contract of employment, although an implied term may arise in some factual situations. An executive is still an employee during a period of gardening leave. Performance based pay may be affected, to the extent that the executive is directed not to carry out any work during the period of gardening leave, as is usually the case.

Waiver of claims

Is a general waiver or release of claims on termination of an executive’s employment normally permitted? Are there any restrictions or requirements for the waiver or release to be enforceable?

Settlement of termination claims either before or after claims are initiated is common, and is generally formalised in the form of a deed. An employer cannot contract out of any statutory entitlements that are payable, such as accrued leave entitlements. Moreover, while a deed of settlement may deal with any payments to which an executive may be entitled contractually, payment of any such benefit without the requisite shareholder approval may still contravene the provisions of the Corporations Act.

Post-employment restrictive covenants

Typical covenants

What post-employment restrictive covenants are prevalent? What are the typical restricted periods?

The most common forms of post-employment restrictive covenants are non-solicitation, non-dealing and non-compete covenants. Non-solicitation covenants prevent former employees from pursuing clients, customers or suppliers they had dealings with during their employment. Non-dealing covenants prevent dealing with or doing business with anyone who has a business connection with the former employer (such as customers, clients or employees) irrespective of whether former employees seek out the clients or the clients approach the employees for services. Non-compete covenants prohibit former employees from approaching clients, working for competitors or establishing their own businesses during the period of restraint.

Enforceability

Are there limits on, or requirements for, post-employment restrictive covenants to be enforceable? Will a court typically modify a covenant to make it enforceable?

While the general presumption is that a restrictive covenant is unenforceable, being contrary to public policy, it will be enforceable in circumstances in which an employer can show that it has a legitimate interest to protect, and the restraint imposed is no more than reasonably necessary to protect that interest. Legitimate interests include goodwill, protection against soliciting employees or customers, or the release of confidential information and trade secrets. Under Australian common law, covenants that are unreasonable will not be enforced. However, under the Restraint of Trade Act 1976, courts in the state of New South Wales may read down a restraint (which would otherwise be unenforceable) to what is reasonable. Most contracts, however, now have restrictive covenants that are drafted as cascading restraints with reducing restraint periods and geographical scope. This allows any restraint determined to be too wide by a court to be severed, and the remaining more limited but valid restraint to be enforced.

Remedies for breach

What remedies can the employer seek for breach of post-employment restrictive covenants?

Post-employment restrictive covenants are generally enforced by way of injunction. In addition, an employer may seek compensatory damages or an account of profits.

Pension and other retirement benefits

Required retirement benefits and incentives

Are there any required pension or other retirement benefits? Are there limits on discontinuing or modifying voluntary benefits that have been provided?

Retirement benefits are provided for in the Australian system through compulsory superannuation guarantee contributions made by employers during the course of the employment relationship. On the whole, most employment-related benefits cease once the employment relationship ends, unless specific terms of the employment contract provide otherwise. Generally, payments of superannuation on retirement are subject to the same limitations as termination benefits and require shareholder approval for payments over the salary cap threshold.

Typical retirement benefits and incentives

What types of pension or other retirement benefits are prevalent for executives? Are there tax or other financial incentives or disincentives for such employee benefit arrangements?

While employer-funded superannuation schemes were once discretionary and largely confined to executive employment, a system of compulsory superannuation that guarantees contributions by employers has now existed in Australia for over 20 years and is available to all employees earning over a modest monthly threshold. Superannuation contributions receive favourable tax treatment under the Australian taxation system, and access to superannuation payments can be supplemented with some paid employment (limited by hours) post-retirement.

Supplemental retirement benefits

May executives receive supplemental retirement benefits?

Supplementary retirement benefits for executives may be provided for in the employment contract, but remain subject to shareholder approval where the total value of the retirement benefits payable exceeds the salary cap threshold.

Indemnification

Directors and officers

May an executive be indemnified or insured for claims related to actions taken as an executive, officer or director?

Executives may seek to minimise their risk of personal or financial liability through indemnity or insurance, but the Corporations Act imposes limitations on this process. A company must not indemnify a director or other officer of the company from a liability owed to the company itself, a liability for a pecuniary penalty, or a liability owed to a third party that did not arise out of conduct in good faith. Similarly, a company cannot pay insurance premiums for a contract insuring an officer of a company for any conduct involving a wilful breach of duty in relation to the company, improper use of position, or improper use of company information.

Change in control

Transfer of benefits

Under what circumstances will an asset sale in your jurisdiction result in an automatic transfer of benefit obligations to the acquirer?

While common law contracts of employment do not automatically transfer with employees in a sale of business situation, under the Fair Work Act, transfers of employment may occur between the selling and the acquiring entities where transferring employees commence work within three months of termination from the sellers’ employment, the work performed is substantially the same, and one of the following connections is established:

  • they are associated entities;
  • there is an outsourcing or insourcing of business between them; or
  • there is an arrangement concerning the ownership or the assets to which the transferring work relates.

The contractual terms under which an asset sale is implemented will often determine whether a specific executive’s employment is transferred to the new entity and which benefits (if any) transfer with the executive. Contractual benefits may be subject to renegotiation by the acquirer, subject to any constraints imposed by the sale agreement and the existing contract terms.

Executive retention

Is it customary to provide for executive retention or related arrangements in connection with a change in control?

Although retention bonuses are often paid globally by acquiring companies to ensure key executives remain with the organisation, their usage is less common in Australia.

Expedited vesting of compensation

Are there limits or prohibitions on the acceleration of vesting or exercisability of compensation in a change in control? Are there restrictions on ‘cashing-out’ equity awards?

Some share schemes in Australia provide for the exercise of discretion to accelerate vesting for some participants in the event of a change of control. In particular, this may be used for executives who may not have a clear role in the organisation once the sale transaction is executed. This acceleration may take the form of full vesting, or only be partial subject to further conditions. There is little evidence of cashing out of equity awards within such schemes.

Are there adverse tax consequences for the employer or the executive relating to benefits or payments provided pursuant to a change in control?

This is a taxation matter and is outside the scope of our expertise.

Multi-jurisdictional matters

Exchange controls

Do foreign exchange controls rules apply to the remittance of funds, or the transfer of employer equity or equity-based awards to executives?

Foreign exchange controls in Australia do not generally restrict the movement of funds in or out of Australia, except in the case of certain financial transactions relating to specified individuals and entities associated with certain regimes. Employers may, however, be required to deduct withholding tax from certain foreign remittances.

Local language requirement

Must employment agreements, employee compensation or benefit plans, or award agreements be translated into the local language?

While there is no absolute requirement that employment agreements be in the local language, as occurs in some European countries, in the absence of translated versions of the agreements, enforcement problems may arise or uncertainty may exist, as to the terms of the agreements.

Net salary arrangements

Are there prohibitions on tax gross-up, tax indemnity or tax equalisation payments?

To minimise the impact of tax liabilities imposed on inbound executives that are higher than they would have been in their country of origin, some employers will make up the difference with a tax-equalisation payment. This may, however, give rise to FBT liabilities.

Choice of law

Are choice-of-law provisions in executive employment contracts generally respected?

The nomination of a particular legal jurisdiction as governing the employment contract of an executive is generally respected, unless there are strong public policy reasons to do otherwise.

Update and trends

Key developments of the past year

What were the key cases, decisions, judgments and policy and legislative developments of the past year?

Key developments of the past year47 What were the key cases, decisions, judgments and policy and legislative developments of the past year?Banking Executive Accountability Regime

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has resulted in tighter industry regulation of executive-level employees. The Banking Executive Accountability Regime (BEAR) imposes accountability obligations on authorised deposit taking institutions (ADIs) and their senior executives and directors. BEAR also requires ADIs, in specified circumstances, to implement remuneration policies that withhold the variable remuneration of accountable persons for a specified period.

NES - Domestic violence leave

The NES have been amended to include an entitlement to up to five days’ unpaid domestic violence leave for all employees, including casuals. Modern awards have been updated to include this entitlement.