Table of Contents
- What Role Type are You Offering?
- Does an Award Apply?
- Can the Employee Legally Work in Australia?
- Does the Employee Have the Correct Qualifications or Permits Required for the Job?
- Employment Agreement and Staff Handbook
- Obtain Employee Details
- Training and Induction
- Key Takeaways
- Frequently Asked Questions
When hiring a new employee for your business, you must consider the onboarding process. There are steps you should take to ensure you are properly hiring and providing entitlements for your employees. In particular, your onboarding process should confirm the type of role and its legality, the tax and super obligations, wage entitlements and that you have the correct documentation. This article will take you through some key steps to set up an employee onboarding process.
What Role Type are You Offering?
Before you offer someone employment with your company, you must know what role and position the employee will undertake. Typically, employee roles are divided into these categories:
- full-time;
- part-time;
- casual; and
- fixed term/permanent.
The type of role you are offering is important, as it determines the number of employee entitlements. If you are unsure, you should consider the following factors:
Hours of Work
For example, will your employee work an average of 38 hours per week? If they do, then they will likely be a full-time employee. If your employee consistently works less than 38 hours per week but maintains a steady schedule, the law will likely class them as part-time employees rather than casual. Part-time employees receive the same entitlements as full-time employees, although these are provided pro-rata.
On the other hand, casual employees have the least degree of security because they have no guarantee of ongoing work. The law does not grant them the entitlements other employees possess, such as paid leave.
Term of Employment
Do you intend for the term of service to be fixed or ongoing? You typically hire a fixed-term employee to work for a specified period only. For example, six months or one year. When this period expires, their employment automatically terminates, although you and the employee can elect to renew the agreement.
A permanent employment agreement will be ongoing until terminated under the employment agreement or the notice period provided for under the National Employment Standards (NES).
Does an Award Apply?
Awards set out the minimum entitlements and conditions the employee is entitled to, including expenses, wages and notice periods. In some circumstances, the law may apply multiple Awards to your employees, such as an industry and a position-relevant Award. If there is a conflict between Awards, the relevant Award should specify the conflict in itself.
If your employees are not covered by an Award, then the NES will apply. These standards are set out in the Fair Work Act 2009 (Cth) and refer to the minimum entitlements that all employees are entitled to.
Knowing whether an employee is covered by an Award or the NES will help you understand the minimum entitlements of your employee and therefore impact the onboarding process. For example, an employee covered by the NES is entitled to the minimum wage. In contrast, employees covered by an Award should be paid in line with the applicable award and the relevant category that applies to them.
Continue reading this article below the formCan the Employee Legally Work in Australia?
You should also request documentation from your employee to confirm they have the right to work in Australia. For example, certain visa holders are restricted to working only a certain number of hours per week. As an employer, it is your responsibility to ensure your employees are entitled to work.
Does the Employee Have the Correct Qualifications or Permits Required for the Job?
Depending on the role that your employee is undertaking, the law may require them to obtain specific qualifications or permits. For example, your employee may need specific training, certifications, police checks or a Working With Children check.
You should consult your specific industry body if you are unsure which licensing and professional requirements are relevant.
Employment Agreement and Staff Handbook
When hiring a new employee, you should have the employee sign your Employment Agreement and Staff Handbook. You may also choose to request additional documents as set out in the Employment Agreement.
Once you have drafted the appropriate agreement, the employee should read and sign it. Both of you should keep copies for your respective records. Along with your Employment Agreement, you will also need to provide your employee with the following:
- a copy of the Australian Government Fair Work Information Statement;
- the Superannuation (Super) Standard Choice Form; and
- the Tax File Number Declaration Form.
Obtain Employee Details
When onboarding new staff, there are several details you should request, including their:
- date of birth;
- address;
- tax file number;
- bank account number and BSB;
- superannuation details (name of fund and member number); and
- emergency contact (full name and number).
Training and Induction
Another critical part of the onboarding process is the completion of training and induction with the employee. It is at this stage that you should provide the employee with any necessary equipment to safely complete their role.
You should consult your industry and specific workplace health and safety guidelines to ensure you are properly training your employees concerning the equipment they are using. Failure to do so may result in failure of your obligations to provide a safe working environment for your employees.
As an employer, understand your essential employment obligations with this free LegalVision factsheet.
Key Takeaways
Onboarding new employees can be an exciting time and it is an important process to undertake to ensure you meet your obligations as an employer. Your internal company policies must be in place to ensure that you take each step of the onboarding process correctly. Generally speaking, the onboarding process will include:
- confirming the role you are offering;
- checking if an Award applies;
- checking the employee’s working rights and qualifications are suitable for the role;
- providing the employee with an employment agreement and staff handbook;
- requesting employee details; and
- completing any training and induction processes.
If you need assistance preparing a suitable onboarding process, 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
Generally speaking, the onboarding process will include confirming the role you are offering, checking if an Award applies, checking the employee’s working rights and qualifications are suitable for the role, providing the employee with an employment agreement and staff handbook, requesting employee details and completing any training and induction processes.
When onboarding new staff, there are several details you should request, including their date of birth, address, tax file number, bank account number and BSB, superannuation details and emergency contact details (full name and number).
We appreciate your feedback – your submission has been successfully received.
