If you're hiring for the first time read on...
Employment Contract Hiring Tool Now Available
Is your business ready to take on an employee? If so, you may be interested in the Government’s recently launched tool for small business owners – the Employment Contract Online Hiring Tool.
You’ve made the decision to add to your team, so what’s next?
It is designed to alleviate some of the stress & administrative burden associated with hiring your first employee.
Negotiating Australia’s Fair Work System can get very overwhelming and time consuming! You need to understand awards, pay rates, taxation obligations, record keeping and Occupational Health & Safety issues.
It is essential you have at least a basic employment contract in place that complies with our complex workplace laws. Minimum terms and conditions are set by the National Employment Standards (NES) and are contained in the Fair Work Act 2009, a relevant award or enterprise agreement.
Your Employment Contract must provide for at least the same minimum terms and conditions set by NES.
(Important – if you’re in Western Australia you may be classified under the State Industrial Relations system rather than the National Fair Work system. In this case, the online tool is not suitable – see below for more detailed discussion of this issue).
What is an Employment Contract?
An Employment Contract or Agreement sets out the nature of the employment arrangement, including mutual obligations and responsibilities together with specific terms and conditions of the employment. A well-constructed contract protects both your business and your staff by reducing the risk of confusion or misunderstandings.
Although some Employment Contracts are more complex as they need to reflect conditions specific to certain industries, all contracts should include certain basic details and conditions, regardless of the size or nature of the business.
Where To Find Help
If you’ve read this far, you’ve probably realised there’s a lot more to hiring an employee than you may have previously thought.
The government has recently launched a new online tool for small businesses embarking on hiring an employee.
You can use the Employment Contract Tool to build a contract that complies with workplace laws and is tailored to your business needs.
It includes conditions that you must provide to your employee along with optional clauses you may wish to adopt to assist in setting expectations to protect your business.
Who Can Use the Online Tool?
You can use it for full-time, part-time and casual employees who are covered by an award and paid an hourly or weekly wage.
Before using the tool, it is important you know the relevant award and the employee’s classification level within that award.
Use this link to Find Relevant Award:
https://www.fairwork.gov.au/awards-and-agreements/awards
Exclusions
The online tool cannot be used for contracts covering some types of workers:
- Apprentices and trainees
- Piece workers
- Seasonal workers
- Employees under Enterprise Agreements
- Independent Contractors
For these types of workers, more information may be found using the following links:
https://www.business.gov.au/people/contractors/employee-or-contractor
Is your Business Based in WA? If so, keep reading!
For us here in Western Australia the situation is a little more complex as two different industrial relations systems are in operation – the State IR system and the National Fair Work system.
If your employee falls under the Western Australian Industrial Relations system, you cannot use the new online tool. Those covered under the WA IRS are generally sole traders, unincorporated partnerships, unincorporated trusts and some incorporated or not for profit organisations.
Not sure if this applies to your business? See the following for more information:
https://www.commerce.wa.gov.au/labour-relations/guide-who-wa-state-system
Note: If you operate using a Trust with a Corporate Trustee (i.e. a Pty Ltd) then your business falls under the National Fair Work system.
If you’ve determined the WA IRS applies to your business, then your Employment Contracts must meet WA award and minimum wage rates.
We suggest you seek further assistance from an industry or professional association for assistance with suitable contracts, but further information can be found at:
https://www.commerce.wa.gov.au/labour-relations/employment-contracts
Ready to Start Drafting Your Employment Contract Using the Online Tool?
If you’re ready to start putting your Employment Contract together, you can access the Online Employment Contract Tool here:
https://employ.business.gov.au/
As you work your way through the tool you will be provided with step-by-step guidance and instructions.
Once complete, you’ll be ready to download your Employment Contract and a Letter of Offer.
Summing Up
It’s great that your business is doing well & in a position to be hiring.
However this process can be a HR nightmare, particularly for first-time employers.
This tool is basic & not for everyone. If your hiring needs are more complex, you should seek expert advice in relation to all HR matters, including the drafting of an Employment Contract specific to your needs.
This is just one small step in hiring, onboarding & maintaining your new employee.
Integrity Impressions can provide Payroll Setup & ongoing processing services.
https://www.integrityimpressions.com.au/services/bookkeeping-perth/
