Understanding the Fair Work Act: What Every Small Business Employer Needs to Know

For many small business owners, employment law is one of the most anxiety-inducing aspects of running a business. The Fair Work Act 2009 sets out minimum entitlements and obligations for employers and employees across Australia, and getting it wrong can be costly.

The National Employment Standards

The National Employment Standards (NES) are minimum entitlements that apply to all employees covered by the national workplace relations system, including annual leave, personal leave, parental leave and notice of termination.

The Fair Work Ombudsman maintains free, plain-English guides, pay calculators and employment contract templates.

Modern Awards

Most employees are covered by a Modern Award setting minimum pay rates and conditions for their industry. As a small business employer, it is your responsibility to identify which award applies and ensure you are paying at least the award minimum rate.

Small Business Unfair Dismissal Rules

Businesses with fewer than 15 employees have different unfair dismissal rules under the Small Business Fair Dismissal Code. Employees must generally have been employed for at least 12 months before making a claim.

For workplace health and safety obligations alongside your Fair Work responsibilities, visit Safe Work Australia. SBTC members can also access our quarterly employment law update webinars and HR advisory helpline.