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Employment Laws you could be breaking (but not know you are)

Cameron Finlay • November 17, 2015

The Fair Work Act has penalties up to $54,000 for breaches.

Here are six common problem areas.

Unpaid 'interns' doing productive work

Often used to let students and jobseekers gain some experience, attractive particularly to start-ups.  But, the intern must be participating in a recognised school or university program and must not be performing productive work for you, otherwise an employment relationship may be created.  Then, minimum award conditions apply.

Failure to consult on a proposed workplace change

Modern Awards require the employer to consult with employees where major changes are likely to impact employees.  The best known is redundancy, but also included are job structure, work availability, hours of work, training, relocations and prospects.  Courts have found this is not a box to tick after, but real discussions are required in advance.

Failure to provide allowances in awards

Many awards include allowances.  Many employers pay over the minimum award pay rates and believe that should cover allowances, penalties and overtime.  The FWC requires a written employment agreement which specifies that an amount of overpayment is intended to cover the entitlements, otherwise the allowances will actually be payable on top of the higher rate of pay already being paid.

Failure to pay leave loading on termination

An employer must pay accrued unused Annual Leave plus leave loading of 17.5% on hourly rate.

Not keeping adequate employee records

These must be kept for seven years, even after employment ceases, including pay, overtime, leave, super, individual flexibility arrangements, termination, and transfer of business matters.  These must be accurate and legible, and provided to an employee upon request.

Not providing an Information Statement at start of employment

Rarely done, easy to fix.  Go to the website of the 'Fair Work Ombudsman', https://www.fairwork.gov.au/employee-entitlements/national-employment-standards/fair-work-information-statement , download its Information Statement, and include it with the employee's employment agreement.

Do your practices include these requirements?  You could save yourself much effort and expense in the future.

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