Category: All

Sheltons Group Legal – an Australian law firm based in London

Significant Changes Ahead for Employment Contracts   

In a recent media release, the Australian Government confirmed its intention to prohibit the use of ‘non-compete’ clauses in employment contracts for low- and middle-income employees, with the proposed ban expected to take effect from 2027. 

Non-compete clauses are a type of restraint of trade that seek to restrict employees from working for a competitor or establishing a competing business, typically within a geographic area and for a set period after the employee ceases employment. 

Currently, non-compete clauses are assessed based on whether the restraint is reasonable, with the Court considering various factors to ensure the restraint protects a legitimate business interest, and that its duration and scope are no broader than reasonably necessary to protect that interest. 

The proposed ban will apply to employees earning less than the high-income threshold prescribed by the Fair Work Act 2009 (Cth), which was just increased to AUD 183,100 on 1 July 2025.  

These reforms were first flagged in late 2023 in response to emerging research suggesting that non-compete clauses may prevent workers from moving to better paying jobs, thereby hampering job mobility. These studies suggest that even where non-compete clauses are not legally enforceable, they can still reduce employee mobility. 

The reforms also follow an international trend of governments considering or enacting bans on such clauses, including within the United States and the United Kingdom. 

Further, as part of the consultation process, the Australian Government has also announced it will consider and consult on the use of non-solicitation clauses relating to clients and co-workers. 

Implications for Employers 

Although these reforms are not yet law, employers should prepare for the possibility that low and middle-income employees may soon be free to work for competitors. 

Accordingly, employers will need to consider alternative measures to protect their business’s goodwill and should be aware that they may no longer be able to rely on such clauses within their employment contracts. 

We will keep you updated as further information is announced regarding the proposed changes. 

* * *

If you need support in determining whether your business is meeting minimum wage obligations, or any advice on any Australian employment law matter, we welcome you to contact Sheltons Group Legal.

Australian legal advice in the European time zone

Did you know that Sheltons Group Legal provides Australian legal services from our London office through Sheltons’ own Australian incorporated law firm?

Our lawyers are based in Sheltons’ London office to cover South Africa and all of Europe – simply to avoid the immense inconvenience of the time difference, an affliction that persists for the majority of the year.

What can Sheltons Group Legal offer?

Our qualified Australian solicitors (lawyers) are typically able to assist and provide advice on the following areas, amongst others:

– employment law
– intellectual property
– drafting and review of commercial agreements
– legal due diligence, and
– commercial and company law.

Further details

Please see here for further details:

Sheltons Group Legal – legal services from Europe

Can we help?

If you are interested in hearing how we can help, feel free to email our Australian qualified Principal Lawyer and Partner in charge of Sheltons Group Legal, Ms Courtney Gleeson at C.Gleeson@SheltonsGroup.com (London based).

Back to Blogs

Sheltons Group Legal – an Australian law firm based in London

The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage and minimum award wages. 

The increase will take effect from 01 July 2025.

The Commission’s decision to increase the minimum wage by 3.5% was primarily guided by the fact that “since July 2021, the real value of modern award wages has declined by 4.5 percentage points relative to inflation as measured by the Consumer Price Index (CPI)” (Annual Wage Review Decision [2025] FWCFB 3500).

National Minimum Wage

For employees not covered by an award or registered agreement, the new National Minimum Wage will be AUD 948 per week, or AUD 24.95 per hour.

Minimum Award Wages

Minimum wages in modern awards will also increase by 3.5%.

Superannuation Guarantee

The superannuation guarantee will also increase from 11.5% to 12% from 1 July 2025.

This means employers will need to contribute a minimum of 12% of an employee’s ordinary time earnings to their super. This increase represents the final step in the legislated gradual increases to the superannuation guarantee rate.

What does this mean for Australian employers?

Employers have a legal responsibility to pay employees at least the minimum wage in accordance with any applicable award, or the National Minimum Wage.

Failing to pay the correct minimum wage can lead to significant financial penalties, orders for back-pay (often with interest) and costly legal action from employees or regulatory bodies like the Fair Work Ombudsman.

Staying informed about minimum wage changes protects your business from legal and financial risk while fostering a more positive and productive workplace.

* * *

If you need support in determining whether your business is meeting minimum wage obligations, or any advice on any Australian employment law matter, we welcome you to contact Sheltons Group Legal.

Australian legal advice in the European time zone

Did you know that Sheltons Group Legal provides Australian legal services from our London office through Sheltons’ own Australian incorporated law firm?

Our lawyers are based in Sheltons’ London office to cover South Africa and all of Europe – simply to avoid the immense inconvenience of the time difference, an affliction that persists for the majority of the year.

What can Sheltons Group Legal offer?

Our qualified Australian solicitors (lawyers) are typically able to assist and provide advice on the following areas, amongst others:

– employment law
– intellectual property
– drafting and review of commercial agreements
– legal due diligence, and
– commercial and company law.

Further details

Please see here for further details:

Sheltons Group Legal – legal services from Europe

Can we help?

If you are interested in hearing how we can help, feel free to email our Australian qualified Principal Lawyer and Partner in charge of Sheltons Group Legal, Ms Courtney Gleeson at C.Gleeson@SheltonsGroup.com (London based).

Back to Blogs

Employee who suffered psychiatric injury is awarded damages which resulted from an employer’s failure to follow its own disciplinary procedures. 

In the recent ruling of Elisha v Vision Australia Limited [2024] HCA 50, the High Court has allowed an appeal awarding AUD 1.4 million in damages to an employee who suffered a major depressive disorder, resulting from a breach of a disciplinary procedure which was incorporated within the employee’s contract of employment.

Background

  • Mr Elisha was employed by Vision Australia Limited (Vision Australia) from September 2006. Mr Elisha’s employment contract contained clauses in which Mr Elisha agreed to comply with all “Vision Australia Policies and Procedures” as well as “all other Company Policies and Procedures”.  
  • Accordingly, the High Court determined that a policy, known as the “2015 Disciplinary Procedure”, was incorporated into Mr Elisha’s employment contact. The High Court further noted that Mr Elisha and Vision Australia were both bound by this policy. 
  • In 2015, Mr Elisha was subject to a complaint made by the manager of a hotel, which he was staying at while travelling for work. The manager complained that Mr Elisha had been aggressive and intimidating when he phoned reception at 12:30am to make a noise complaint.  
  • The complaint eventuated in a disciplinary meeting between Mr Elisha, his manager at Vision Australia, and a member of the “People and Culture” department, to discuss what Vision Australia described as serious misconduct. 
  • Prior to the disciplinary meeting, and in accordance with the 2015 Disciplinary Procedure, Mr Elisha was given a written notice outlining the alleged misconduct.  
  • However, prior to the disciplinary meeting, Mr Elisha’s manager advised the People and Culture department, and senior management of Vision Australia, that Mr Elisha had a “pattern of aggressive behaviour”, although no evidence of this behaviour was ever provided.
  • Mr Elisha’s manager also accepted the hotel manager’s version of events without question, and advised senior management that his conduct was “gross misconduct and should be addressed accordingly”.
  • Importantly, the allegation that Mr Elisha had demonstrated a pattern of aggressive behaviour was never put into the written notice, nor was it discussed during the disciplinary meeting. Mr Elisha was never afforded the opportunity to respond to this allegation.  
  • Despite vehemently denying the allegations, Mr Elisha’s employment was terminated following the disciplinary meeting.
  • Mr Elisha subsequently suffered a major depressive disorder resulting in an inability to work for the foreseeable future.  

The Decision

  • By failing to allow Mr Elisha the opportunity to respond to the allegation, that he had demonstrated a pattern of aggressive behaviour, the High Court ruled that Vision Australia failed to follow the 2015 Disciplinary Procedure, which resulted in Vision Australia being in breach of the employment contract with Mr Elisha.  
  • It was determined that the “secret slurs” made by Mr Elisha’s manager prejudiced the conduct of the disciplinary meeting, and had those remarks not been made, then Mr Elisha’s employment would not have been terminated.  
  • Further, it was held that the psychiatric injury was caused by Vision Australia’s breach of contract, and that the liability for the injury was not too remote.
  • This is the first time the High Court has ruled that psychiatric injury is a type of injury that can result in damages being awarded to employees for a breach of contract. 

Key Take Aways

  • Employers must ensure strict compliance with all workplace policies, particularly when it concerns the possible termination of an employee’s employment.  
  • Consider whether it is necessary to incorporate workplace policies and procedures within your company’s employment contracts.  
  • Be mindful of the impact a workplace investigation and disciplinary procedure can have on your employees. 
  • Always ensure employees have the opportunity to respond to all allegations which may be considered when deciding whether their employment will be terminated.  

Please contact us if you require any advice or assistance concerning all matters relating to Australian employment law and workplace investigations.  

* * * 

If you’re looking to invest or establish operations in Australia, then feel free to let our London-based Australian qualified lawyers know and we can discuss how we can assist. 

Australian legal advice in the European time zone 

Did you know that Sheltons Group Legal provides Australian legal services from our London office through Sheltons’ own Australian incorporated law firm? 

Our lawyers are based in Sheltons’ London office to cover South Africa and all of Europe – simply to avoid the immense inconvenience of the time difference, an affliction that persists for the majority of the year. 

What can Sheltons Group Legal offer? 

Our qualified Australian solicitors (lawyers) are typically able to assist and provide advice in the following areas, amongst others: 

  • employment law 
  • intellectual property 
  • drafting and review of commercial agreements 
  • legal due diligence, and  
  • commercial and company law. 

Further details 

Please see here for further details: www.sheltonsgroup.com/australia/#Legal

ETL Global International Conference 2024

Ned Shelton, Ivan Zammit, Stef Oragano, Courtney Gleeson and Morten Kenhof were delighted to attend the ETL Global 2024 International Conference in Rome, on 09-11 October.

The main theme of this year’s event was “Achieving Quality Together”. The event was a chance to exchange knowledge and experience, and to explore the best strategies that can be applied to professional services firms.

The team participated in working group sessions, attended interesting panel discussions, and enjoyed networking with other professionals.

The Sheltons team are looking forward to the next ETL event and connecting with more members.

Ned Shelton (Managing Partner – Sheltons Australia, Sheltons Singapore, Sheltons UK)
Ivan Zammit (Partner – Sheltons Malta)
Stefano Oragano (Partner – Sheltons Denmark)
Courtney Gleeson (Partner – Sheltons Legal, Australia)
Morten Kenhof (Senior Consultant – Sheltons Denmark)

ETL GLOBAL – ETL GLOBAL | Tax, Legal, Audit, Accounting. (etl-global.com)

ETL GLOBAL Conference 2024 – Achieving Quality Together (etl-global.com)

If you would like to speak to one of the team, please visit our contact page.

 

 

 

 

Sheltons Group Legal – an Australian law firm based in London

Understand Australia’s new Right to Disconnect Law

Australian employees will now have the right to refuse, monitor, read or respond to contact (or attempted contact) outside working hours, unless it would be unreasonable for them to do so.  

These changes came into effect from 26 August 2024 for non-small business employers and will come into effect for small business employers from 26 August 2025.  

  • What does the right to disconnect involve?

It is important to note that these changes do not result in a blanket ban on contacting employees after work hours. Nor do these changes actually prohibit employers from contacting employees, rather they simply allow an employee to ignore such contact without suffering any negative repercussions to their employment.  

Employees now also have the ability to seek an order from the Fair Work Commission (FWC) which prevents an employer from continually contacting the employee outside work hours. Employers then risk being fined for contravening such orders.  

However, contact made to employees after ordinary hours of work cannot be ignored if ignoring such contact would be considered ‘unreasonable’. There is no strict definition of what would be considered ‘unreasonable’, but the following (non-exhaustive) list of matters will be considered:  

  • the reason for the contact or attempted contact  
  • how the contact is made and the level of disruption the contact caused the employee
  • the extent to which the employee is compensated to remain available to be contacted or to perform work outside ordinary work hours
  • the nature and level (or seniority) of the employee’s role, and 
  • the employee’s personal circumstances (family or caring responsibilities).  

Accordingly, whether contact outside ordinary work hours would be considered unreasonable will vary between different roles and industries.  

For example, where it may be considered unreasonable to contact a low-level employee on minimum wage, that same type of contact may be considered reasonable if made to a highly compensated employee in senior management. 

  • What do these changes mean for your business? 

Employers will need to review and potentially reconsider their operations and how they engage with their workforce.  

In particular, businesses with international workforces will need to reconsider their expectations of Australian employees in terms of their availability outside of Australian business hours.  

In order to mitigate the risk of employees seeking orders from the FWC, and subsequent fines should such orders be contravened, businesses may consider the following options:   

  • Reviewing employment contracts to clarify position descriptions and ensure that it is clear what out of hours contact is expected with the role. 
  • Ensuring that employees are compensated for out of hours contact which could be provided as part of their salary, overtime pay and/or time off in lieu.  
  • Implementing an out of hours contact policy setting out clear expectations as to when and why employees may be contacted out of hours (e.g., the policy could list specific emergency situations in which employees will be required to respond to contact).  
  • Workplace policies should also set out a complaints process or a dispute resolution process to encourage employees to resolve matters internally rather than seeking orders from the FWC.  
  • Implement training programs to ensure all managers are aware of their obligations.  

It is important that all employees (including managers) within your business are aware of, and understand, the rights and obligations under Australia’s new right to disconnect laws. 

If you require assistance or advice on these new laws, then please do not hesitate to contact us.  

***

Courtney Gleeson
Lawyer
Sheltons Group Legal (London and Sydney)
C.Gleeson@SheltonsGroup.com

Sheltons Group Legal – legal services from Europe

Back to Blogs

Sheltons Group Legal – an Australian law firm based in London

Understanding the Proposed Changes to Australia’s Foreign Investment Framework

Earlier this year, Australia’s Treasurer, Dr Jim Chalmers, announced significant changes to Australia’s foreign investment framework with an aim to enhance national security and economic resilience.

Foreign businesses and investors planning to invest or establish commercial operations within Australia may require prior approval from the Australian Treasury. The Australian Treasury is advised by the Foreign Investment Review Board (FIRB), which examines and assesses investment proposals. As a foreign business or investor, depending on the nature of the business or investment, you may be required to submit your business or investment proposal to FIRB for assessment.

There are currently no proposed legislative changes, rather the changes will be implemented via streamlining Treasury processes, amending internal policies, and increasing resources.

We outline below the key points from Treasurer Jim Chalmers’ announcement. The Australian Government’s proposal intends to implement the following changes:

  • Increasing the Treasury’s capacity to efficiently assess complicated or high-risk proposals by dedicating more resources to the teams which assess such proposals;
  • Increasing scrutiny on sectors where there are supply chain resilience concerns, where there is a need to protect sensitive data, or where there may be a concentration of ownership concerns;
  • Streamlining processes to provide faster approvals for known investors who are investing in non-sensitive sectors and who have a good compliance record;
  • Ensuring foreign investors pay the correct amount of tax by continuing to update guidance about tax arrangements that will attract greater scrutiny (such as those which are overly complex); and,
  • Enhancing compliance and monitoring to enforce conditions on foreign investments by increasing resources to compliance teams.

The good news from this announcement is that Treasury is looking to increase efficiency and reduce assessment times for investors engaging in low-risk investments.

What does this mean for your business?

The proposed changes may result in increased regulatory compliance for foreign businesses that plan to invest or operate in Australia. If your business is planning to invest or establish commercial operations within Australia, it is important that you understand Australia’s regulatory framework prior to investing.

For further details, you can refer to the full announcements and policy documents on the Treasury’s official website here: https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/reforms-strengthen-australias-foreign-investment

***

If you’re looking to invest or establish operations in Australia, then feel free to let our London-based Australian qualified lawyers know and we can discuss how we can assist.

Courtney Gleeson
Lawyer
Sheltons Group Legal (London and Sydney)
C.Gleeson@SheltonsGroup.com

Sheltons Group Legal – legal services from Europe

Back to Blogs

Sheltons Group Legal – an Australian law firm based in London

The Australian Fair Work Commission has determined that Australia-wide increases are to apply to the national minimum wage as well as to Modern Award minimum wages. The increases took effect from 1 July 2024.

Each year, the Fair Work Commission (‘FWC’) makes an order that covers subjects including the national minimum wage after considering factors relevant to the economy, employers, and employees.

Accordingly, the FWC’s Annual Wage Review 2023-24 announced that the national minimum wage and Modern Award minimum wages would be increased by 3.75%.

As a result, the national minimum wage has increased from AUD 882.80 to AUD 915.90 per week for full time employees (i.e. employees who work an average of 38 hours each week) – meaning the hourly minimum wage is now AUD 24.10. The Modern Award minimum wage increase means that pay rates above AUD 915.90 per week have increased by 3.75% per week.

Modern Awards are industry or occupation specific and apply to those performing work covered by the Award. As such, it is important to be aware that different minimum wage rates apply across different Modern Awards.

Approximately 2.6 million employees across Australia are expected to receive the minimum wage increases. It is therefore essential that all employers take note of the increases to ensure each employee is being paid at or above the new minimum rates. Annualised salaries must be sufficient to absorb all statutory entitlements.

If you would like further information about the Australian wage increases, or assistance in determining which Modern Award applies to your employees – please contact us.

Courtney Gleeson
Lawyer
Sheltons Group Legal (London and Sydney)
C.Gleeson@SheltonsGroup.com

Sheltons Group Legal – legal services from Europe

Back to Blogs

Singapore incorporated companies are required to file financial statements with the Accounting and Corporate Regulatory Authority (ACRA). There are some exemptions. Additionally, some companies will also be required to file eXtensible Business Reporting Language (XBRL) format financial statements with ACRA.  

There are four types of XBRL templates which can be used: 

  • Full XBRL 
  • Simplified XBRL 
  • XBRL Financial Statements Highlights (Banks) 
  • XBRL Financial Statements Highlights (Insurance) 

The majority of non-publicly accountable companies will file XBRL financial statements using the full or the simplified template.  

The filing of full XBRL financial statements is mandatory in the following circumstances: 

  • Singapore incorporated exempt private companies (EPCS) that are insolvent and do not meet the “small company” criteria 
  • Singapore incorporated non-exempt private companies (EPCs)  

An exempt private company (EPC) will be characterised as follows: 

  • Usually ends with “Pte Ltd” 
  • Has a maximum of 20 shareholders 
  • Does not have any corporate shareholders 
  • Has a share capital 

A company fulfils the definition of a “small company” if the revenue and total assets for the financial year end do not exceed SGD 500,000 respectively. 

For more details on eXtensible Business Reporting Language financial statements filling requirements, please contact us.  

Contact Us

At Sheltons Accountants Singapore we have extensive experience in providing Singaporean and international tax advice. This includes advice on tax treaty issues and cross-border tax efficient structuring.

If you need advice or assistance with your Singaporean tax obligations, or if you would like us to prepare your Singaporean tax returns, we’re here to help.

Simply send us an email at SG@SheltonsGroup.com.

Sheltons Singapore

Back to Blogs

From 1 January 2024, the Goods and Services Tax (“GST”) in Singapore was increased from 8% to 9%. 

The GST rate chargeable on the supply will be the prevailing rate at the time of supply. The time of supply for most transactions is triggered by the earlier of the following two events: 

  • When payment is received 
  • When an invoice is issued 

GST-registered businesses need to know when their supplies are delivered or performed, in addition to the invoice date and payment date, to determine whether and how the transitional rules would apply to a supply spanning across the date of rate change. 

A transaction spans a GST rate change when one or more of the following events straddles the date of the rate change: 

  • The issuance of an invoice
  • The receipt of payment
  • The delivery of goods or performance of services. 

For more information on the transitional rules with respect to the GST rate changes, please contact us.  

Related blogs:

Goods and Services Tax (GST)

Singapore tax treatment of gains from sale of foreign assets

Contact Us

At Sheltons Accountants Singapore we have extensive experience in providing Singaporean and international tax advice. This includes advice on tax treaty issues and cross-border tax efficient structuring.

If you need advice or assistance with your Singaporean tax obligations, or if you would like us to prepare your Singaporean tax returns, we’re here to help.

Simply send us an email at SG@SheltonsGroup.com.

Sheltons Singapore

Back to Blogs

With effect from 1 January 2024 Singapore will, under certain circumstances, treat gains from the sale or disposal of foreign assets as income chargeable to tax under Section 10L of the Income Tax Act.

Prior to 1 January 2024, Singapore did not tax gains from the sale or disposal of assets that are capital in nature, whether they were foreign-sourced or Singapore-sourced.

However, foreign-sourced disposal gains are now chargeable to tax under the following specific circumstances:

  • the gains are received in Singapore from outside Singapore by a covered entity, and
  • the gains are derived by an entity without adequate economic substance in Singapore.

Entities that have reasonable economic substance and whose operations are managed and performed in Singapore are excluded. In this regard a distinction is made between PEHE and non-PEHE entities.

Pure equity-holding entities (PEHEs) are subject to less strict economic substance requirements. These are entities whose primary function is to hold shares in other entities, and that have no other income than dividends from or gains on the disposal of the shares.

Covered entities relate to “relevant groups” whereby:

  • the entities of the group are not all incorporated, registered or established in Singapore; or
  • any entity of the group has a place of business outside Singapore.

Note that the above represents a limited summary of the new Section 10L rules. Section 10L is complex and official guidance is still awaited. Professional advice is strongly recommended.

Contact Us

At Sheltons Accountants Singapore we have extensive experience in providing Singaporean and international tax advice. This includes advice on tax treaty issues and cross-border tax efficient structuring.

If you need advice or assistance with your Singaporean tax obligations, or if you would like us to prepare your Singaporean tax returns, we’re here to help.

Simply send us an email at SG@SheltonsGroup.com.

Sheltons Singapore

Back to Blogs