3 August 2023
In Australia, a robust framework of laws and regulations governs the relationship between employers and employees. To ensure a fair and safe working environment, employers must fulfil a range of obligations. From workplace safety to fair remuneration and dismissal, adherence to these obligations is crucial for promoting harmonious and productive workplaces. The IP House Lawyers can assist employers in navigating the complexities of employment law and ensure that your workplace stays up to date with regulatory changes.
Fair Work Act 2009 (Cth)
The Fair Work Act 2009 (Cth) (Fair Work Act) is the central piece of legislation governing employment relationships in Australia. It sets out the rights and responsibilities of both employers and employees, promoting fair treatment, collective bargaining and minimum entitlements, for example, National Employment Standards, including minimum wage or applicable industry award rates and minimum employment conditions (such as leave entitlements, working hours, and overtime arrangements).
When terminating an employee, employers must follow the rules outlined in the Fair Work Act and any applicable industry instruments (such as modern awards) or enterprise agreements. Fair dismissal procedures must be followed and redundancy entitlements must be paid where applicable. The IP House Lawyers can assist employers to familiarise themselves with the laws and ensure compliance, thereby avoiding disputes and unnecessary costs.
Superannuation
The Superannuation Guarantee (SG) system mandates that employers regularly contribute a percentage of their employees’ ordinary earnings to a complying superannuation fund or retirement savings account based on the current SG rate. From 1 July 2023, the SG rate is 11%.
Superannuation contributions must be paid at least quarterly and employers are required to submit Superannuation Guarantee Charge statements to the Australian Taxation Office (ATO). Employers should be mindful of contribution deadlines to avoid penalties and potential legal issues.
Taxation and Payroll Obligations
Employers must adhere to taxation requirements, including withholding income tax from employees’ wages and remitting it to the ATO.
Payroll tax is a state-based tax that employers are required to pay on their employees’ wages and salaries, including shares and options under Employee Share Option Plan. It is designed to fund various state government services and is subject to the legislation of each state or territory. As such, the threshold for payroll tax, rates, and payment date varies between jurisdictions. Employers with taxable wages in Australia exceeding the state’s threshold are required to register for payroll tax and make the necessary payments to the relevant state revenue office.
Adequate record-keeping of employee wages, salaries and payroll tax calculations is crucial for compliance and audit purposes.
Work Health and Safety
Workplace safety is a paramount concern in Australia. Employers are obligated to provide a safe and healthy work environment for their employees, visitors, and contractors. Compliance with Work Health and Safety laws involves conducting risk assessments, implementing safety procedures, providing training, and maintaining appropriate insurance.
Anti-Discrimination and Equal Opportunity
Employers must promote a workplace free from discrimination, harassment, and bullying. The Australian Human Rights Commission Act 1986 (Cth) prohibits discrimination on the basis of attributes such as race, gender, age, disability, and sexual orientation. Employers must take proactive measures to prevent discrimination and address any complaints promptly.
Employment Agreement
An Employment Agreement, also known as an Employment Contract, serves as the foundation of the employer-employee relationship in Australia. Following the Fair Work Act, applicable industry instruments (such as modern awards) and enterprise agreements, the Employment Agreement outlines the terms and conditions of employment, protecting the rights and obligations of both parties.
The Employment Agreement will typically include clauses such as offer and acceptance, position and duties, remuneration and benefits, probationary period, termination and notice periods (including any termination-related obligations or severance pay), confidentiality and non-disclosure, intellectual property rights (which ensures that any work-related creations or inventions belong to the employer), restrictive covenants (such as non-compete clauses, non-solicitation of clients or employees, and non-poaching agreements), dispute resolution (for example, mediation or arbitration, before resorting to legal action) and compliance with laws and workplace policies.
The IP House Lawyers can assist employers in drafting, advising and finalising the Employment Agreement to ensure that employers comply with all relevant laws and regulations in Australia.
For any further information or queries on the above content, please contact us.
The Author
Jean Kallmyr | Lawyer, The IP House Lawyers | t: 0435 799 831 | e: admin@theiphouse.com.au
Key Contact
Claire Darby | Managing Director/Lawyer, The IP House Lawyers | t: 0412 998 951 | e: claire@theiphouse.com.au
Disclaimer
The information and contents of this publication do not constitute any legal or financial advice. This publication is intended only for reference purposes for The IP House Lawyers’ clients and prospective clients.
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