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 the minimum entitlements and obligations for employers and employees across Australia, and getting it wrong can be costly. Here’s what you need to know.
The National Employment Standards
The National Employment Standards (NES) are the minimum entitlements that apply to all employees covered by the national workplace relations system. They include provisions for annual leave, personal and carer’s leave, parental leave, flexible working arrangements, and notice of termination.
The Fair Work Ombudsman maintains a free, comprehensive resource centre with plain-English guides, pay calculators and templates for employment contracts and letters of engagement.
Modern Awards
Most employees are covered by a Modern Award, which sets minimum pay rates and conditions specific to their industry or occupation. As a small business employer, it is your responsibility to identify which award applies to each of your employees and ensure you are paying at least the award minimum rate.
Unfair Dismissal Protections for Small Business
Small businesses (those 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 they can make an unfair dismissal claim against a small business.
For ongoing training and compliance support, SBTC members can access our HR advisory helpline or attend our quarterly employment law update webinars. You can also explore the Safe Work Australia website for workplace health and safety obligations that sit alongside your Fair Work responsibilities.
