Starting a Business
11. Employment of Workers
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 24 Sep 2015
- Hiring and retaining the right staff is one of the most important steps towards business success.
- Before you consider hiring staff you need to understand your responsibilities as an employer as well as what you can legally expect from your employees or contractors.
- Most of your rights and obligations as an employer are in the Fair Work Act 2009 (Cth). The Act includes things such as the new awards system and minimum wages for different industry sectors and employment types.
- One of the first things you should be clear on is whether you intend to employ workers or are engaging the services of an independent contractor. This distinction is important for determining your rights and obligations particularly with regard to wages and conditions.
- Independent contractors operate their own business and hire out their services. Such contractors will:
- set their own fees and working arrangements;
- are usually paid to achieve an agreed result;
- are free to refuse additional work;
- will usually advertise to the public; and
- generally don't have the right to employee entitlements such as sick pay or paid leave.
- Employees on the other hand are:
- usually directed to undertake certain work by their employer; and
- generally under supervision by the employer.
- Employees must be provided with:
- a minimum award wage;
- employee entitlements such as standard work hours; and
- entitlements such as sick leave and paid leave.
- The modern awards cover everyone in a certain industry or occupation except for some managers and higher paid specialist roles.
- It is important that you understand when a formal written contract is required and what the benefits are.
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