Frequently Asked Questions
Do I need to pay my staff under an Award?
Your employees must be paid under the Award and Classification for your industry. If you do not do this, you may receive a fine in the sum of $31,000.
Do I require a contracts of employment?
Whilst it is not a legislative requirement it is dangerous to have this relationship undocumented. Recently a client of ours received a claim from Fair Work for an employee who had worked for him for a couple of months. They were claiming 25% loading for every hour they worked. My client employed this person on a permanent part time basis, but because there was no contract to state this, the claim was successful and our client had to pay about $1800 in back pay.
What if I terminate a casual employee?
If they are a true casual, then that is fine, but if they are actually an employee because their have had uniformity and regularity to their role, then you may see yourself with an unfair dismissal claim. Ensure that they are true casuals before you terminate and if it is questionable, ensure that you terminate their employment correctly.
What is a casual employee
A Casual Employee is a person who works for you for approximately 4 to 10 hours per week. They will more than likely be a university student and you get them to come in on an ad hoc basis to assist with workflow. There is no regularity or uniformity to their role. Once they have been with you for a while – eg: more than 6 months and they come in on a regular basis, then they are no longer casual employees.
What is the difference between employees and independent contractors?
A: As a general rule an Independent Contractor must work for another employer at least 20% of their time. They must invoice you and you must pay them. You do not accumulate leave entitlements on their behalf. They must pay their own Superannuation and Tax to the ATO. You should ensure that you obtain confirmation of this, because if it is decided that the person is an employee and not a contractor, YOU will receive the fine, not them.
An Employee, works for you and you pay them a base rate – in line with the Award for your Industry and you pay their Superannuation to a fund of THEIR choice and the tax to the ATO. You must accumulate leave entitlements on their behalf for annual, sick and long service.
If I don’t know what to do in a staffing, safety or quality situation, what do I do?
Call us!
