NSW Employment Contract Mobile Phone

[Michael1983]

I have an existing contract (10 years ago) which included a car and mobile phone as part of the package. 99.9% of my mobile usage is work related. Particularly given the current work from home covid situation, plus I am usually on site or on the road. My employer has recently said he doe not want to pay for my mobile and wants to just give me an $800 pay rise. To me this does not cover a typical high usage mobile contract. Plus I do not believe that I should pay for a work mobile that I do not use for personal usage. Can my employer just change the contract if I do not agree? And if he does not provide a mobile then do I have the right to refuse to get a mobile to recieve or make calls and people can then only email me if they want to make contact?

 

[Rod]

Can my employer just change the contract if I do not agree?

No.

And if he does not provide a mobile then do I have the right to refuse to get a mobile to recieve or make calls and people can then only email me if they want to make contact?

Depends on what is negotiated for the $800 pay rise.

The alternative is to negotiate a higher rise to cover the cost of the mobile.

 

[Michael1983]

Thank you for taking the time to answer. Much appreciated. Would i be within my rights if I don't negotiate a pay rise to fill out an expense form each month?
I may just opt to negotiate a better pay rise and that way the number is mine again.

 

[Rod]

I may just opt to negotiate a better pay rise and that way the number is mine again.

This is a significant benefit to many people.

And yes, employee expenses can be claimed IF the employer agrees to the expense before it is incurred.

 

[Tim W]

First thing - the payrise needs to be a dollar number that will leave you enough additional cash after tax,
to fund an "all in" phone contract.

Mobiles provided by are an exempt fringe benefit.
If you're given plain old cash instead, then that's either part of your assessable income under 8-1, or
it's an Expense Payment Fringe Benefit (even if it's an exempt benefit).
Both have implications - get pro-advice from your accountant.

From a lawyers perspective, a move like this by an employer - that is, petty expense cutting, and attempts to cap or cost-shift expenses,
can be a red flag that the business is (or is about to be) in trouble.
This is the kind of "little thing" that, when you think back on it...
You may be well advised to start a little discreet disaster planning now.

 

[Michael1983]

First thing - the payrise needs to be a dollar number that will leave you enough additional cash after tax,
to fund an "all in" phone contract.

Mobiles provided by are an exempt fringe benefit.
If you're given plain old cash instead, then that's either part of your assessable income under 8-1, or
it's an Expense Payment Fringe Benefit (even if it's an exempt benefit).
Both have implications - get pro-advice from your accountant.

From a lawyers perspective, a move like this by an employer - that is, petty expense cutting, and attempts to cap or cost-shift expenses,
can be a red flag that the business is (or is about to be) in trouble.
This is the kind of "little thing" that, when you think back on it...
You may be well advised to start a little discreet disaster planning now.

Thank you very much for all that detail. That's a huge help!