Table of Contents
- Correct Clafficiation of Workers
- Compliance With Applicable Awards and Minimum Wage Requirements
- Well-Drafted Contracts
- Implementation of Appropriate Workplace Policies
- Legally Compliant System of Disciplining and Terminating Employees
- Adherence to Health and Safety Obligations
- Key Takeaways
- Frequently Asked Questions
As an employer, legal compliance is essential to the success of your business. To assist you in the process, we have put together this quick checklist for employers to ensure ongoing legal compliance and best employment law practices.
Correct Clafficiation of Workers
The Australian labour market consists of permanent employees, casual employees, fixed/maximum-term employees, and contractors. However, just because a contract identifies a person as one of these, does not mean it is the correct classification at law. Likewise, this can have serious consequences. For example, if the Court finds a contractor is, in fact, an employee, he or she can then be entitled to superannuation and other employment entitlements, including back-pay.
Compliance With Applicable Awards and Minimum Wage Requirements
Most workers, including clerical staff, hospitality workers, apprentices and trades, are subject to awards that guarantee the minimum rate of pay and entitlements including:
- penalty rates;
- meal allowances; and
- overtime pay.
You should ensure that you are aware of any applicable modern award. There are over 120 modern awards, which are characterised based on industry or occupation. It is worthwhile to take a few moments to review each applicable award and ensure compliance. Of course, noting the complexity of some awards, it is best practice to consult an employment lawyer throughout this process.
Continue reading this article below the formWell-Drafted Contracts
Having a precedent contract you found on the internet when you started your business many moons ago is unlikely to provide adequate protection for you and your business. Indeed, employment contracts play an important role, not just in setting out parties’ rights and obligations, but also in protecting your business. Amongst other elements, your employment contract can protect:
- valuable IP;
- confidential business information; and
- ongoing business relationships even after the particular employment relationship concludes.
Having a well-drafted employment contract in place, applicable to your industry, and with all the relevant attachments is essential.
Implementation of Appropriate Workplace Policies
Once your employees have signed the contract and are on board, your legal obligations and risk by no means end. So, it is good practice to implement workplace policies setting out appropriate conduct that relates to:
- bullying;
- anti-discrimination;
- use of equipment;
- health and safety;
- acceptable use of information technology; and
- drug and alcohol use.
As an employer, understand your essential employment obligations with this free LegalVision factsheet.
Legally Compliant System of Disciplining and Terminating Employees
Defending a claim in the fair work commission is taxing on any organisation. To avoid this, employers should have in place a proper policy and system to deal with the issue of warnings, grievances and performance management. Your policy should outline a set process your organisation will take, including informal and formal meetings, and you should follow this process at all times.
Further, if you find yourself exhausted of all options and are considering to terminate an employee’s employment, having a set discipline policy and following it places your businesses at a decreased chance of legal claims.
Adherence to Health and Safety Obligations
As an employer, you have an obligation to take all reasonable steps to ensure the health and safety of your employees, contractors and any visitors to your premises.
Employers in particular industries, including construction, mining, or anything involving chemicals, are subject to additional regulations requiring appropriate measures to be taken to protect their workers’ health and safety.
Key Takeaways
Running a successful business involves many skills and qualities. While business acumen is important, a comprehensive understanding of the law is also critical, especially if you are an employer. As an employer, there are various checks you can complete to ensure your business is legally compliant. You should confirm you have implemented appropriate workplace policies as well as adhere to health and safety obligations.
For more information about your obligations as an employer or assistance with your business, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
Your employees may be permanent, part-time/full-time, casual or maximum/fixed-term workers. Alternatively, they may be an independent contractor, where they are essentially running their own business. To determine the appropriate classification, you should consider how many hours the employee is required to work and the nature of the relationship. For example, if the employee is only required to work on ad-hoc basis with no set hours per week, they are likely to be a casual worker.
A wide range of awards is available for most industries and occupations. National awards aim to ensure that employees have consistently fair working conditions, regardless of their job. Some examples of common industry modern awards include the Aged Care Award 2010, the Social, Community, Home Care and Disability Services Award 2010, and the General Retail Industry Award 2020.
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