Under the national workplace relations system, legislation governs various matters concerning wages, conditions of employment, leave and other entitlements. As an employer, there are two main matters to note: the National Employment Standards (NES) and the modern awards system. This article will take you through the obligations of employers in the home building industry specifically.
As an employer, understand your essential employment obligations with this free LegalVision factsheet.
The National Employment Standards
As an employer, understanding the minimum standards prescribed by the NES is critical to ensure your business remains legally compliant. There are 11 minimum standards that apply to all employees, though there are some exceptions.
The 11 standards are as follows:
- a maximum of 38 hours of work per week;
- parents or carers of children may make requests for flexible working arrangements;
- entitlement to unpaid parental leave for a maximum of 12 months with the option to extend leave for another 12 months.
- 4 weeks of annual leave per year, including an additional week for some employees;
- 10 days of paid personal or carer’s leave and 2 days of unpaid personal or carer’s leave; 2 days of compassionate leave are also included;
- community service leave for voluntary emergency activities and jury duty;
- long service leave for employees who have met certain requirements;
- a paid day off on public holidays, except where a reasonable request has been made for the employee to work;
- redundancy pay and notices of termination;
- the provision of a Fair Work Information Statement, which will inform employees about their rights and obligations under the Fair Work system; and
- pathways to permanent employment for casual employees, referred to as ‘casual conversion’.
Modern Awards
Awards are industrial instruments that outline the minimum employment terms and conditions for workers in particular industries and occupations.
Awards provide for a range of minimum entitlements, including:
- pay rates;
- hours of work;
- rosters;
- break times;
- penalty rates and overtime;
- leave, including carer’s, annual and long service leave;
- termination notice and redundancy pay; and
- flexible working arrangement requests.
To know which award applies to a particular employee, you should read clause four of each award. Clause four will indicate the most appropriate award for the specific classification. As an employer, it is up to you to know which award applies to your employees and apply it properly. If you are unsure, it is best to engage a legal professional.
Continue reading this article below the formThe National Minimum Wage
The Fair Work Commission establishes the national minimum wage each year. This amount covers the wages earned by employees who are not covered by either modern awards or enterprise agreements.
For example, from 1 July 2023, the Fair Work Commission increased the minimum wage to $23.23 per hour or $882.80 per week (38-hour work week).
Failure to Provide Correct Entitlements
You may be penalised if you fail to provide your employee with the entitlements your business owes them. For example, penalties of more than $13,000 for individuals or $66,000 for companies may apply for breaching the NES. Similarly, a breach of an award may attract substantial civil penalties.
Key Takeaways
Understanding the National Workplace Relations System is crucial to all employers in the Home Building Industry. Sound knowledge of your legal obligations will allow you to provide the necessary entitlements and protections to your employees.
As an employer within the home building industry, ensure you are familiar with:
- the national employment standards;
- all relevant awards; and
- the relevant minimum wage order.
Failure to keep on top of your obligations can result in serious penalties. If you need assistance understanding your obligations as an employer, 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
Under the National Workplace Relations System, a unified set of rules govern various matters concerning wages, conditions of employment, leave and other entitlements. As an employer in the home building industry, you must adhere to all these systems.
You may be penalised if you fail to provide your employee with their rightful entitlements. For example, penalties of more than $13,000 for individuals or $66,000 for companies may apply for breaching the NES.
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