Expert Legal Advice Made Simple

If you’ve reached the point where you need to add an employee to your business, here’s a quick guide for what you need to know about employment law to get started. Employment Contracts There is no obligation to have a written contract of employment. However, a written employment contract will create a better working relationship between you and your employee. At a minimum the employment contract should include: Commencement date Hours of work Probation period Duties and responsibilities Place of work Remuneration Notice Confidentiality, intellectual property rights and post-employment restraints Name of the award if it is applicable. Before planning a contract, also take into account: Is the role full time, part-time or casual? Is the role fixed-term or ongoing? Is the role covered by an award/enterprise agreement? Still confused? Talk to Van Beveren Lawyers about our competitively priced employment contract packages. Awards If the role is covered by an award the employment contract will need to include minimum conditions and entitlements including: Types and classifications of employees Minimum pay rates Hours of work and rosters Breaks Allowances Penalty and overtime rates Leave Superannuation. Use the Fair Work Ombudsman's Find my award tool to find the relevant award. Insurance As a minimum, there are three main types of insurance you need when you have employees. Workers’ compensation insurance is compulsory to cover you and your employees against financial hardship due to an accident or illness. Public liability insurance covers you for third party death or injury and is compulsory for certain types of companies. Third-party personal injury insurance is compulsory if you own a motor vehicle and is often part of your vehicle registration fee. Visit WorkSafe Victoria to find out what your workers’ compensation obligations are in Victoria and speak to an authorised insurer or insurance broker to find out which policies are best for you. Workplace Safety You are legally obliged to ensure a safe workplace and look after employee health and safety in the office, on-site, from home or on the road, Use the WorkSafe Victoria tools to determine the risks here . Penalties apply if you do not meet your Occupational Health and Safety (OHS) obligations. Tax File Number A Tax File Number (TFN) identifies employees to the Australian Taxation Office (ATO). Ask your new employee to complete a tax file number (TFN) declaration before starting employment. Reporting Obligations When you hire someone, you will have tax and superannuation obligations. You need to report payments made to your employees to the ATO including: Salaries and wages pay as you go (PAYG) withholding tax superannuation guarantee fringe benefits tax (FBT). You must report and pay the withheld PAYG amounts to the Tax Office regularly, provide each employee with payment summaries, and lodge an annual report with the ATO at the end of each financial year. Leave Employees can take leave for many reasons, including to go on a holiday, because they are sick or to take care of sick family members. Minimum leave entitlements for employees come from the National Employment Standards (NES). Ending Employment If you do dismiss an employee, they can challenge the dismissal with the Fair Work Commission if they think it was unfair. Take care not to dismiss an employee if they have already made a complaint to the Fair Work Commission. It is not permitted to dismiss an employee because they have gone to the Fair Work Commission, and dismissing an employee who has made a complaint may be construed this way. If in doubt, get legal advice, which we can help you with. Learn more about ending employment, unfair dismissal, notice and final pay on the Fair Work Ombudsman’s Ending employment page . Have any employment law questions? Call us now.