While you may know how to drive a vehicle you would not venture out on the road without knowing the road rules.
The legislation in relation to employment is complex and unwitting error is common. It’s important to know and understand the rules and regulations relevant to your employment environment.
Mistakes can be very costly if left uncorrected. The most common errors unwittingly made by employers are.
- Confusing the State and National workplace relations environments
Often employers unwittingly operate between the two systems. Note only one system applies to your business.
- Ensuring employment contracts are well written
Employers at the very minimum should observe the statutory employment terms and conditions in contracts of employment.
- Not knowing the correct awards that cover your business and misinterpretation of awards.
It is essential to correctly identify the awards covering your business and understand how to interpret the information.
- Misclassifying the independent contracting relationship
Because a worker has an ABN and submits an invoice does not in itself determine that the worker is an independent contractor.
- Lacking a thorough understanding of the employer obligations relevant to the workplace relations environment within which the business operates.
WA is the only State in Australia that has two workplace relations systems. In brief, the WA workplace relations environment covers unincorporated entities such as Sole Traders and Partnerships whereas the National workplace relations environment includes constitutional corporations. That is, Pty Ltd companies, trading or financial corporations.
The State and National System have their own Act, set of awards and minimum conditions of employment and different rules apply to each of these environments.
Knowing and understanding your legal obligations, ensuring employment contracts are well drafted, understanding the content of awards that cover your workplace, classifying the worker correctly under the award, paying the correct rates and knowing how to correctly define the contractor vs employee relationship, will in the long term save employers grief and will avoid giving rise to costly and unnecessary employee claims.
Book in to hear Maria Odlum speak at the Business Essentials Expo on the 15th Sep or Call Modlum for HR Consulting for a free no obligation HR Health check to ensure you are in the right track with employment!
Direct line: 9417 7672 or Mobile 0400 566 701 www.modlumforhr.com
About Maria Odlum:
Building HR departments from ground up to successfully support major business expansion, Maria Odlum has built a strong reputation as a Qualified HR Practitioner, with over 17 years’ experience. Maria provides advice and cost effective, low risk solutions to day to day employment problems and has gained great client confidence by mitigating potential risk for small business and educating SMEs on the legislative complexities relevant to their business to ensure that they are on the right track with employment.