Employment Law Basics: A Guide for Australian Businesses

Vivian Nguyen • May 17, 2025

Navigating the complexities of employment law is crucial for Australian businesses. Ensuring compliance not only protects your business from legal pitfalls but also fosters a positive and productive work environment. This guide covers essential aspects of employment law, from hiring to workplace safety, providing a foundational understanding for employers.


1.
Hiring Employees: Getting it Right from the Start


Employment Contracts

🔵 A well-drafted employment contract is essential. It should clearly outline the terms and conditions of employment, including job duties, remuneration, and termination procedures.

🔵 Ensure the contract complies with the National Employment Standards (NES) and relevant industry awards.


Discrimination

🔵 Avoid discriminatory practices during the hiring process. It is illegal to discriminate based on factors like age, gender, race, or disability.

🔵 Focus on merit and job-related qualifications.


Fair Work Information Statement

🔵 Provide all new employees with the Fair Work Information Statement, which outlines their rights and entitlements.


2.
Award Wages and Entitlements: Ensuring Fair Compensation


Modern Awards

🔵 Determine the applicable modern award for your industry. These awards set minimum wages and conditions.

🔵 Stay updated on award changes, as they are periodically reviewed.


National Minimum Wage

🔵 Ensure you are paying at least the national minimum wage, which is reviewed annually.


Pay Slips

🔵 Provide employees with detailed pay slips that include information about their wages, deductions, and superannuation contributions.


Superannuation

🔵 Comply with superannuation obligations by making timely contributions to employee super funds.


3.
Leave Entitlements: Understanding Employee Rights


National Employment Standards (NES):

🔵 The NES outlines minimum leave entitlements, including annual leave, personal/carer's leave, and long service leave.

🔵 Ensure your leave policies comply with the NES.


Parental Leave:

🔵 Understand and comply with parental leave entitlements, including paid and unpaid leave.


Domestic violence leave:

🔵 All employees in Australia are entitled to 10 days of paid family and domestic violence leave each year.


Public Holidays and Weekeends:

🔵 Pay employees correctly for work performed on public holidays and weekends. 


4.
Termination: Managing Employee Exits Legally


Fair Dismissal:

🔵 Ensure terminations are fair and not based on discriminatory reasons.

🔵 Follow proper procedures, including providing written notice and reasons for termination.


Notice Periods:

🔵 Provide employees with the required notice period, as outlined in their employment contract or the relevant award.


Redundancy:

🔵 If redundancies are necessary, comply with redundancy pay requirements and ensure a fair process.


Unfair Dismissal:

🔵 Be aware of the rules surrounding unfair dismissal, and what constitutes an unfair dismissal.


5.
Workplace Health and Safety (WHS): Prioritising Employee Well-being


Duty of Care:

🔵 Employers have a duty of care to provide a safe and healthy workplace.

🔵 Implement WHS policies and procedures to minimize risks.


Risk Assessments:

🔵 Conduct regular risk assessments to identify and mitigate workplace hazards.


Training and Information:

🔵 Provide employees with adequate WHS training and information.


Incident Reporting:

🔵 Establish procedures for reporting and investigating workplace incidents.


Workers Compensation:

🔵 Maintain current worker's compensation insurance.


Staying Compliant

🔵 Fair Work Ombudsman - Utilise the resources provided by the Fair Work Ombudsman for guidance and support.

🔵 Legal Advice - Seek legal advice from an employment lawyer to ensure your business is compliant with all relevant laws and regulations.

🔵 Regular Reviews - Regularly review your employment policies and practices to stay up-to-date with changes in legislation.


By understanding and adhering to these employment law basics, Australian businesses can create a fair, safe, and productive workplace while minimising the risk of legal disputes.


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