Factsheets / Pay / Pay Secrecy

Pay Secrecy

3 min read

Let’s talk about pay secrecy

Pay secrecy is when workers are banned from talking about how much they earn with their coworkers, or from asking others about their pay.

It means that in workplaces where some workers are paid less than others for the same job, they often won’t know about it – or if they do, they can’t act without repercussions.

Pay secrecy can lead to serious inequality at work and is a big contribution to Australia’s gender pay gap. But all that has changed, thanks to a new law won by union members a few years ago!

What was the law before these changes?

Previously, your boss could direct you to keep your wages secret. They would do this by adding a pay secrecy clause to your individual employment contract or the agreement at your workplace.

What’s new?

These new rights empower workers to talk about their wages. That means you can’t get into trouble for talking about your pay or asking your workmates about theirs.

As of 7 December 2022:

New employment contracts and agreements made after this date are not allowed to contain pay secrecy clauses.

Pay close attention if your contract or Agreement was made before 7 December 2022 (and it had a pay secrecy clause):

  • For contracts – it will stay in effect until your contract is varied, or you start a new one.
  • For agreements – the pay secrecy clause is now void.

As of 7 June 2023:

Employers who include pay secrecy clauses in new agreements and employment contracts after this date are liable for penalties.

Where to from here?

Pay transparency is powerful. These new laws are the final step in a long campaign by unions to ensure that all workers not only have the right to freely discuss wages, but are empowered to challenge pay discrimination and wage inequality in their workplaces. So speak up!

Are you already a union member?

Reach out to your union for more specific information about how you and your workmates can make the most of your rights at work.

Not yet a member?

Joining your union is the most powerful decision you can make to protect your rights at work.