Pay Secrecy Clause
A contractual term prohibiting employees from disclosing or discussing their remuneration.
Definition
A pay secrecy clause refers to any term or condition within an employment contract or other written agreement that restricts an employee's ability to disclose or discuss information about their remuneration and other terms and conditions of employment that are reasonably necessary to determine remuneration outcomes. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 explicitly prohibits the inclusion of such clauses in new employment contracts and renders existing clauses inoperative if the contract is varied or a new one is entered into. This prohibition aims to foster greater pay transparency and enable employees to assess the fairness and comparability of their remuneration.