5 things you
need to know
about
Employment
- Employment law affects all businesses that engage employees, contractors or volunteers. It can be a complex and highly emotive area to manage and navigate. Generally, businesses need to work with employment lawyers or specialists when hiring new employees, terminating an employment contract while avoiding unfair dismissal, dealing with performance or behavioural issues, implementing workplace policies and procedures and understanding employee entitlements. Ultimately, an experienced employment lawyer can help you avoid an employment dispute arising in your workplace.
- When hiring an employee, it is important to determine whether an industrial instrument, like a modern award or enterprise agreement, applies to the role. Industrial instruments set the minimum terms and conditions for employees for their particular industry or occupation. For example, social workers may be covered by the Social, Community, Home Care and Disability Services Industry Award. Employers can determine what industrial instrument applies by searing the Fair Work Ombudsman website, or your lawyer can assist you with determining award coverage.
- You will then need to ensure that the employee’s employment contract is well-drafted to protect your business and is compliant with all relevant legislation, including the Fair Work Act 2009 (Cth) and state and territory laws. Additionally, you may need to negotiate the contract with your employee. However, you can include several key clauses to protect your business interests, including (i) a non-compete clause so your employee does not leave and compete directly with you, (ii) a non-solicitation clause to prevent ex-employees from poaching your customers and staff, (iii) a confidentiality clause to ensure your employee keeps your critical business information confidential, and (iv) an intellectual property clause to ensure that any intellectual property developed in the course of employment vests with your business.
- There are many risks associated with terminating an employee’s employment for poor performance or conduct, on account of redundancy or for any other reason. It is wise to seek legal advice from employment lawyers on when and how to terminate employment, given employers face the risk of legal action for unfair dismissal, among other potential actions.
- Finally, there are other working structures, such as contractor relationships, which small- or medium-sized businesses can use to engage workers. There are also different superannuation and tax obligations for employees and contractors, and you must be aware of certain prohibitions under the Fair Work Act 2009 (Cth) against sham contracting. Hence, you should have a lawyer prepare your contractor agreement to ensure your business meets its obligations and is well-protected.
