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Recruit Staff |
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Employment |
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Watch Videos |
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Case Studies |
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Take Quiz |
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Welcome to the
Employment module! |
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Learn the secrets to attract, select and manage your staff. |
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Click on a heading below to begin. |
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You can also watch videos, listen to audio, download a PDF or
start the quiz. |
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Managing People |
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Employing
People |
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Retaining
People |
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Resolving
Disputes |
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Legal
Requirements |
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Managing People |
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Watch Video |
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Listen to Audio |
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Case Studies |
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Take Quiz |
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This chapter describes some of the methods you can use to
successfully manage your employees; including effective
delegation, employee motivation and ways to maximise
performance. |
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Click on a heading below to begin. |
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You can also watch videos, listen to audio, download a PDF or
start the quiz. |
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Defining Roles
and Responsibilities |
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Delegating
Effectively |
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Motivating your
Employees |
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Maximising
Performance |
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Employing People |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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This chapter describes the processes involved in employing
people, explaining the different types of employment, your legal
obligations as an employer, the changing nature of the workforce
and how you can recruit the best people for your business. |
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Click on a heading below to begin. |
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You can also watch videos, listen to audio, download a
PDF or start the quiz. |
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Recruitment |
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Types of
Employment |
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Employer
Obligations |
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Employee
Entitlements |
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Costs of
Employment |
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Changing
Workforce |
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Recruitment |
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Watch Video |
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Take Quiz |
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If you decide to employ new people, determine what type of
employee would be most suitable for the job and what sort of
skills and attributes you are looking for in an employee. You
should also consider the relevant costs associated with
employing new people. |
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It is a good idea to prepare a job
description that defines the role, responsibilities and
functions of the position. This can help you to identify the
knowledge, experience and skill requirements of your future
employees. |
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Once you have prepared a job description, you can begin to think
about how you would like to |
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advertise the position. There are a number of ways that you can
do this; including newspapers, internet based employment sites
or through an employment agency. |
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It is important to note that when advertising for a position,
you are required by law not to use discriminatory language that
may exclude potential employees on the basis of race, age, sex,
marital status, family status or responsibility, pregnancy,
religious and political beliefs, disability, gender history or
sexual orientation. |
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Have a solid plan for your interview process and ensure that you
ask questions relevant to the job description. Try to access
each candidate based on the quality and honesty of their
answers, and notify each of them with an answer as soon as you
have made your decision. |
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The success of your recruiting will rely on your knowledge of
the process and how well you: |
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Advertise |
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Select the right applicants |
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Interview |
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Document a formal offer of employment |
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There are a number of sources that you can visit and research to
develop your knowledge of the recruitment process. These
include: |
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Australian Job
Search: Free services for employers. |
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Staff Planning
Estimators: Used to gain an understanding of the cost of staff
within your business. |
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Business.gov.au:
Government website with information on recruitment for business
owners. |
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Types of Employment |
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The people working within your business each fall under a
category of employment. Each type of employment has different
obligations for both you and your employees. |
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You need to determine whether your workers are classed as
employees or contractors. An employee is someone who works under
a contract of employment. Those
who are not employees are referred to as independent or
sub-contractors. There are significant differences in a legal
context between the two regarding awards, superannuation,
insurance and compensation. The ATO provides
an Employee/Contractor Decision Tool to
help you determine what type of workers you employ. |
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It is important |
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to establish the most suitable type of employment for each
individual situation when recruiting new staff. The categories
of employment are outlined below: |
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Full-time Employees: |
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Used where an employer requires a stable and consistent
workforce with essential skills, knowledge and experience. Their
hours will depend on the type of work and conditions of
employment. |
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Part-time Employees: |
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These employees work fewer hours than full-time employees doing
the same or similar tasks. They have continuing contracts of
employment over an unspecified duration with similar conditions
to full-time employees. |
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Casual Employees: |
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Generally employed for short term, irregular or seasonal work.
The essential feature of casual work is that the employee enters
into a series of short-term contracts, with no promise to
provide work or be available for work on other occasions and no
permanent employment entitlements. Therefore their wages usually
include compensatory loadings. |
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Probationary employees: |
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An employment contract may specify a probationary period. Where
the period of probation determined in advance is three months or
less, dismissal of the employee during that period is generally
exempt from the federal termination of employment provisions. |
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Fixed-term Employees: |
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Often employed for project work or to replace employees absent
on extended leave. They generally accrue entitlements |
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such as annual and sick leave. There is legislation related to
the termination of fixed-term contracts. |
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More information on the types of employees can be found at: |
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The employee
categories section of Workplace.gov.au. |
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The ATO website
on determining the status of your employees. |
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Employer Obligations |
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As an employer, you have a number of obligations to adhere to
including legal obligations, paperwork and records, staff health
and safety in the workplace, superannuation and taxation,
anti-discrimination practices and insurance. |
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Your legal
obligations relate to paying correct wages to staff, reimbursing
them for work related expenses and not behaving in a way that
could be damaging to their reputation or future earning
potential. The workplace.gov.au website has further guidelines
regarding a number of employer obligations. |
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An employer must also be able to keep good records and paperwork
in order to make sound and accurate business decisions. This
will help to avoid errors or omissions when paying staff and
keeping track of their entitlements. |
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It is an obligation
of the employer to provide a safe workplace that employees can
feel comfortable working within. It should be free of physical
hazards as well as possible issues relating to employee mental
health. Employers should aim to reduce the dangers that their
employees are exposed to by following the Occupational Health
and Safety guidelines. |
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Employers may be
obliged to pay superannuation to employees based on their type
of employment. There are tax regulations that must also be
followed that are outlined by the Australian Taxation Office. |
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Employers must
ensure that the workplace is free from discrimination and any
other forms of harassment. All staff must have equal opportunity
in the workplace in regards to incentives and promotions. This
is important not only from a legal standpoint but to maintain
good employee relations. When problems do arise, an employer
should have a dispute resolution process in place to deal with
the issues. You can read about these employer responsibilities
on the Human Rights and Equal Opportunity Commission website. |
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Employee Entitlements |
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Take Quiz |
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When the time comes for you to take on new employees, you should
be aware of all the relevant employee entitlements. These can
range from wages and conditions to holidays, leave,
superannuation and redundancy entitlements. |
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Many jobs in
Australia are covered by a federal or state award that outlines
the rights and obligations of employers and the minimum legal
wage rates and conditions associated with each type of work.
These regulations are outlined by the Australian Fair Pay
Commission. Some workplaces and individuals may be covered by an
agreement that sets out specific wages, entitlements and
conditions of employment. The |
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re are also a
number of new regulations under the Australian Workplace
Relations system and you should visit their website to see if
the changes affect you. |
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As an employer, you are obliged to grant employees certain leave
and holiday entitlements. Most workers are paid for public
holidays, except for contract or casual employees who are only
paid for hours worked. Other paid leave includes annual or
recreational leave, sick leave and long service leave. |
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Each employee's
award or agreement will contain information on their holiday and
leave entitlements and the relevant pay arrangements. There are
also regulations regarding maximum hours and limits on the
number of days worked in a row by an employee. These can be
found on the Workplace Ombudsman pay and conditions webpage.
Workers may also be employed on a written contract of employment
which sets out specific conditions and entitlements. |
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Employees are entitled to superannuation payments
from their employer. The Australian Tax Office (ATO) provides
information about your obligations as an employer on the
Superannuation and Taxation webpage.
You can find further information, advice and reporting
requirements on the ATO website. |
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Employees that have
been made redundant also have a number of entitlements. These
are outlined under the General Employee Entitlements and
Redundancy Scheme. |
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Costs of Employment |
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Take Quiz |
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There are many costs
associated with employing people in your business. It is
important for you to take all of these costs into account during
the employment process. |
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Firstly, you need to consider the time and costs associated with
advertising, selecting and interviewing applicants. Depending on
the size of your business, type of job and number of applicants,
this process can become very involved. |
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There may also be the need to improve the infrastructure of your
business premises in order to employ new people. This includes
catering for |
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the physical space another employee will need and the equipment
that they will use to complete their work. Part of employing new
people will also involve training
and developing so that the person can work effectively within
the business and with existing employees. |
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There is the obvious cost of paying a base salary to your new
staff member, but there are also the hidden costs relating to
employee entitlements. These include superannuation payments,
annual leave, sick leave and public holidays. These costs add up
to a significant percentage over the base salary. |
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For example: An employee's wage is $24 per
hour. |
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Therefore: |
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Weekly wage = $840.00 ($24 x 7 hours x 5 days) |
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Superannuation Contribution = $75.60 ($840 x 9%) |
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Annual Leave (4 weeks) = $3,360.00 ($840 x 4 weeks) |
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Sick Leave (10 days) = $1,680.00 ($24 x 7 hours x 10 days) |
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Public Holidays = $60 per hour ($24 x 2.5 public holiday
loading) |
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On top of these costs, you may be obliged to pay for insurance
to cover Workers Compensation.
Insurance expenses can vary greatly depending on the level of
risk in your particular industry. Employing new people also
comes with a number of taxation requirements. These requirements
vary from state to state so you should visit the ATO
page on Employer
Essentials. |
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After careful consideration of these expenses, you can decide
whether or not it is a good idea to employee new people. You may
find that the additional benefits outweigh the additional costs,
or that you are better off leaving things the way they are. |
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Changing Workforce |
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Watch Video |
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Take Quiz |
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The demographic of the Australian workforce is currently
changing. This is due to a number of factors such as an aging
population, labour shortages and immigration. Another
significant factor that has changed the workforce is the changes
in the attitudes of workers; with the much debated discussion
regarding the different generations - Baby Boomers (those born
just after World War II), Generation X (born in 1960's-70's) and
Generation Y (born in 1980's to present)- and their views on
career and employment. |
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Changes in the workforce mean that employers may need to adapt
their recruitment, training and management processes. An example
of this is that there are currently a large number of older
people either currently employed or seeking employment. |
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Where employers may have previously looked to younger people as
a source of recruits, they may now have to broaden their view to
find what a wider range of people have to offer. Many of these
people may not have changed jobs in a significant period of time
and may require extra training to bring their skills up to date. |
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There is also a shortage of skilled labour in many sectors. This
means that employers may have to take on less skilled workers
initially and develop them, rather than simply hiring
experienced people. There may even be a need to hire workers
from overseas or people who have recently immigrated to
Australia in order to fill gaps in the labour market. Employers
will need to expand their search to find these people. |
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There is a move towards working closer to home or from home,
particularly with new parents who don't have access to
childcare. Employers may find that they need to make this a
possible option
in order to retain or find new staff. Allowing people to work
from home will also make the employer and job more attractive to
a wider range of people. |
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The government has placed an emphasis on the training of young
and unskilled workers, indigenous people and people with
disabilities. This has led to a number of incentives for
employers wishing to take on apprentices or offer internships. |
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More information can be found here on: |
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Employer Demand Demonstration Projects |
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Job Access for
people with a disability |
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Australian
Apprenticeships |
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National Indigenous
Cadetship Project (NICP) |
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Retaining People |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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This chapter explains some of the key methods you can use to
retain your employees; including the benefits of training and
development, performance management and becoming an employer of
choice. |
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Click on a heading below to begin. |
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You can also watch videos, listen to audio, download a PDF or
start the quiz. |
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3.1 Training and
Development |
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3.2 Employer of
Choice |
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3.3 Career Planning
and Progression |
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3.4 Performance
Management |
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3.5 Remuneration |
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Training and Development |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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As an employer, providing training
and assisting in the development of your employees is an
important part of being able to retain people. The business
environment is constantly evolving, and by providing training,
your staff will be more able to keep up with these changes. |
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Training and development should be viewed as an investment in
your business. Providing training for your employees may even
lead to greater business productivity, efficiency and quality.
It can also help to improve motivation and improve the level of
customer satisfaction. |
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However, to get the most benefit out of training, you should
first identify the gap
between the skill requirements |
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of your business
and the skills that your staff currently have. It is a good idea
to perform some type of analysis to determine your training
needs. This will help you to identify trouble areas within your
business, what skills need to be improved and help to
distinguish the different skill levels of your employees, as
outlined on the Training Information site. |
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Once you have
identified these points, you can decide on the type of training
your staff will get the most benefit from. Upon choosing a
scheme, ensure that all of your employees understand what
opportunities and benefits can be gained from the training.
Visit Training Packages At Work to find details on individual
training packages. |
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The benefits to you as an employer, is that employees will be
better able to complete their tasks in the workplace
effectively. The added advantage of this is that it may make it
easier for you to retain staff. Employees who feel that they are
improving, learning new skills and developing in their workplace
are generally more likely to stay on, as opposed to staff with
no prospect of training opportunities. |
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More information can be found by visiting: |
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National Training
Information Service regarding Registered Training Organisations
(RTO). |
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University, TAFE and OH&S training
pages. |
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Business.gov.au skills
development and training. |
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Employer of Choice |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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One of the better ways to retain good staff is to become an
employer of choice. This means that employees perceive you as
the employer they would work for even if they were given a
choice of having a different employer. |
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Becoming an employer of choice means that you have a reputation of
being a good person to work for. An employer of choice will
therefore also have more options when it comes to recruiting and
retaining staff. You will be regarded as the best option when it
comes to seeking employment and your employees will prefer to
work in your business than another comparable business. |
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In order to become an employer of choice and give yourself more
options regarding retention and recruitment of new people, you
should aim to offer something that other businesses or employers
are lacking in. This may come in the form of better remuneration
packages, extra entitlements and higher quality workplaces. |
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Your reputation as an employer of choice may also be developed
by offering training to employees that will allow them to build
their skills and knowledge base. You may benefit from visiting
one of the websites that offer information on training packages
and schemes such as the National Training
and Information Service or training.com.au. |
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Another benefit that you can offer to staff involves providing
options for performance based assessment with incentives for
excellent work. By recognising employee achievements and
rewarding them accordingly you are seen as an employer who takes
a genuine interest in the effort that your staff put into your
business. It shows that you value their skills and makes them
more inclined to continue to work within your business. |
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However it is important to live up to any guarantees you make
when trying to retain staff. Therefore, it can sometimes be
difficult to maintain your reputation as an employer of choice. |
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Career Planning and Progression |
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Career planning and assistance for your employees and options
for career progression such as training, development and
promotion are factors that can help you to retain staff over
long periods of time. |
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As an employer, you should encourage people to come up with
career goals and to plan where they would like their career to
head. Retaining employees often involves keeping them up to date
with the narrative of the business, providing details of the
'business story' so they can keep realigning their own plans
with those of the organisation. |
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Part of the career
planning process is identifying what positions in the business
your employees would like to reach. This may be within a
relatively short or long term period. You should identify who
would like to change jobs, stay in the same position, be
promoted or change fields and move into something different,
such as management. The My Futuresite provides some basic
information on career planning and offers assistance to
employees. |
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By identifying the
goals of your employees, you can determine who should be
the focus of future specific training and development. This
allows you to better manage your staff and lets you help them
achieve their career goals. Staff who feel that their employer
is interested in seeing them succeed within the business are
generally more inclined to remain loyal to that business. The WA
Get Access page has further information on career planning
initiatives for employees and employers. |
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It is important to note that some employees strive on high
pressure, performance based positions of employment, yet other
employees may like less stressful positions even if they offer
fewer opportunities for promotion. The people who feel that they
have no chance of progression within your business may seek
employment elsewhere. Therefore, it is vital that wherever
possible, you try to make sure that people understand what
options for career planning, progression and promotion, as well
as training and development, are available to them. |
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Performance Management |
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Take Quiz |
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An important factor in retaining good employees is your
performance management skills
as an employer and your ability to recognise and reward good
performances within the workplace. |
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Performance management involves you setting goals and outcomes
for both the business as a whole and for individual sectors or
employees. By setting performance benchmarks, employees may
become more motivated as they aim to meet each objective.
Generally, employees who have something to work towards are more
likely to put in extra effort to meet targets. |
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After setting your performance objectives, it is important to
gauge whether or not your business and your employees are
reaching the goals previously set out. This can be achieved
through performance audits and interviews with managers and
employees to determine if they believe the objectives are
realistic and if they are being met to a sufficient standard. |
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When you have
determined the performance level of the business and your
employees, it is a good idea to offer some form of recognition
as a way of thanking your employees for their commitment to the
business. There is detailed information on performance
management and recognition on the Australian Public Service
Commission website. |
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Performance
recognition can come in a variety of forms and is part of being
an employer of choice. Depending on the type of business and the
level of performance you may provide remuneration rewards, award
presentations, social functions or promotion opportunities for
staff. Further opportunities for training and development can
also be offered by an employer as a form of performance
recognition. Information on training packages can be accessed on
the Training website. |
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These measures are likely to make it easier for you as an
employer to retain your best employees. Staff who feel that they
are recognised for their hard work and commitment to reaching
performance targets will generally be more likely to remain with
your business than those who feel they are just a number. |
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Remuneration |
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Take Quiz |
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The most widely recognised method of attracting and retaining
good employees is through remuneration packages. This is because
a good remuneration package can have a positive effect on a
person's standard of living. |
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Remuneration refers to money or substitutes for money. This may
include wages, salaries, commissions and bonuses, incentive
plans and allowances. The total value of all these items is
called a remuneration package. |
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Remuneration packages should relate to factors included in the
job description such
as roles and responsibilities. Positions within your business
may come with different levels of stress, difficulty and
workload, |
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so an employee's remuneration should reflect these differences.
Higher level job requirements will generally yield better
remuneration. |
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While a
remuneration package is often seen as a way of luring and
enticing staff during the recruitment process, it can also be
used as a valuable tool for retaining good people, as shown on
the Workplace Development Tasmania website. When good
performance is recognised, it may be appropriate to have a
meeting with your employees individually to discuss changes and
additions to their remuneration as a reward for good
performance. |
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It can also be used as a method of retaining staff
members who have indicated that they might change jobs within
the near future. By discussing this option with them you can
ascertain as to whether or not a change to their remuneration
package would make them more likely to stay. |
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It is also
important to remember that many employees would like to keep
their individual remuneration packages confidential. This is a
good idea as it can help prevent awkward situations, jealousy
and workplace disputes. However you should remain fair and offer
similar packages to people who do the same jobs and not base
appraisals on discriminatory or personal factors. Information
regarding this issue can be found at the Australian
Workplace website. |
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Resolving Disputes |
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Listen to Audio |
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Take Quiz |
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This chapter will assist you in understanding why disputes arise
and how you can resolve them as an employer. It also outlines
the management of employee relations and the termination of
employees. |
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Click on a heading below to begin. |
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You can also watch videos, listen to audio, download a PDF or
start the quiz. |
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4.1 Managing
Employee Relations |
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4.2 Managing
Complaints |
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4.3 Managing
Disputes |
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4.4 Termination of
Employees |
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Managing Employee Relations |
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Take Quiz |
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The area of employee relations covers a broad range of topics
centred on the behaviour and interaction of people in the
workplace. It is particularly concerned with the relationship
between you, the employer, and your employees. As an employer,
you are responsible for managing employee relations within your
business. |
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Employee relations can extend to include situations where there
has been a breakdown in interactions between employees, causing
disputes and complaints to emerge. It is your role as an
employer to have a process in place to deal with these disputes
as they arise. |
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An initial way of being able to manage employee relations is by
being approachable to employees. If employees feel comfortable
in coming to you for assistance, then problems are more likely
to be identified and brought to your attention earlier. The
earlier that you are made aware of these issues, the easier they
are to solve in most cases. You can find additional information
on employee relations at the Australian Human Rights Commission
website. |
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Maintaining good employee relations has a number of benefits for
your business. It can improve communication between employees
and therefore increase your productivity and efficiency. When
people feel that there are good employee relations within the
workplace, they are generally more likely to want to remain with
the business, therefore improving staff retention. |
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Another important part of managing employee relations involves
training and development. Staff should be made aware of their
roles and responsibilities as employees. They should also be
made aware of policies regarding discrimination and harassment
in the workplace. Workplace training and development is a
proactive measure to prevent future disputes and therefore helps
to maintain employee relations. |
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For further advice
on managing employee relations in your business, contact
the Workplace Authority. |
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Managing Complaints |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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As an employer, you are likely to come across complaints made by
your employees. These complaints may concern either issues
between you and the employee or the employee and their
colleagues. The way that you deal with these complaints is an
important part of managing employee relations. |
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Before you are able to receive and deal with workplace
complaints, your employees must know that you are approachable.
They need to feel comfortable that if they come to you with a
complaint, they will be dealt with professionally, and in many
cases discreetly. If you make yourself approachable, your
employees are likely to come forward sooner, possibly preventing
the issue from escalating further. |
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Complaints may arise due to simple and easily rectifiable errors
or omissions on your part, such as a mistake with wages or
entitlements. If an error is a result of you |
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r mistake, you should be apologetic and correct the problem as
soon as possible. |
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Complaints against the employer may be of a more serious nature.
This will usually occur where there is a breakdown of
communication and negotiations have failed to solve the problem.
This may also occur where an employer has intentionally tried to
deceive an employee or refused them some of their rights or
entitlements. It may relate to breaches of statutory regulations
and OH&S rules.
An employer can be reported to the Australian
Government Workplace Ombudsman or WorkCover
Authority. |
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Complaints of harassment and
bullying may also arise, often in the form of workplace
disputes. It is a good idea to have a system in place to deal
with these complaints in a professional and discreet manner when
they appear. Occasionally these complaints may be of such a
serious nature that they may need to be reported to the police
or relevant authorities. |
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Managing Disputes |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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As an employer, you are likely to come across some type of
workplace dispute.
It may involve you and an employee, or between the staff
themselves. Some disputes will be of a more serious nature than
others, however it is important that they are all dealt with
appropriately. |
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Workplace disputes are generally different from complaints.
Disputes usually concern a disagreement or argument between two
parties, whereas a complaint is often just to bring an error or
problem to your attention. Therefore disputes often have no
quick fix and may be more difficult to resolve. |
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As an employer, you will need to view disputes from an unbiased,
objective point of view. This can be difficult if you are one of
the people involved directly in the dispute, however it is vital
that you are able to look at each issue from both points of
view. |
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Firstly, you should
listen to each side of the argument from each person involved
separately. This will allow people to be honest and feel that
they are providing information in private. If you cannot, it may
be a good idea to bring in an outside mediator so that your
employees don't feel that they are at a disadvantage when it
comes to negotiating a solution. The Victoria Department of
Justice website has information on mediators. |
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After you have heard each side of the dispute and a simple
resolution cannot be achieved, you may need to bring the parties
together to discuss and negotiate a solution. After careful
consideration, it may be down to you as an employer to make a
decision and resolve the dispute. This might make you unpopular
in the short term, however it may be the only way to allow
business to continue. |
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A way of avoiding disputes involves monitoring the
workplace and employees. Through effective leadership and
management, you can identify issues that may potentially
escalate, and intervene early on to avoid possible disputes in
the future. |
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You can find
further information on resolving workplace disputes from the
Workplace Authority Advice Line. There is also additional
information from the Good Practice, Good Business package. |
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Termination of Employees |
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Watch Video |
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Take Quiz |
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During the course of being an employer
and maintaining your business, you are likely to come to a
situation where you will either end the employment of an
employee, or they will leave your business. Employment with your
business ends when an employee resigns, retires, is made
redundant or is dismissed. It is important to understand your
and your employee's obligations when employment comes to an end. |
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Resignation is a right of your employees, however they should
give their employer sufficient prior notice in writing. An
employee may choose to retire from work and should also give
their employer notice in writing. |
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A job or position
may become redundant when the work performed by the employee is
no longer necessary or required. This usually occurs where an
employee's job has been replaced by technology or due to
business restructuring. It may also occur where a business is
being wound up and will cease to exist. Information regarding
employee entitlements upon being made redundant is available on
the Australian Taxation Office website. |
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The other way that an employment can be terminated is through
the process of dismissal. However, in order to legally dismiss
an employee, you must provide a sufficient reason. The reason
may be based on poor performance, inappropriate conduct or
changes to your operational requirements. |
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Unfair dismissal has
a number of legal implications. A dismissal is unfair when it is
harsh, unreasonable or unjust. There are also a number of tax
obligations relating to the ending of employment. The Workplace
Authority provides details about the termination
of employment. You can also read more
about the different methods of ending employment on business.gov.au. |
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Legal Requirements |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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This chapter is designed to give you an overview of your legal
requirements and obligations as an employer. It covers topics
including awards and conditions, superannuation, compensation
and OH&S regulations. |
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Click on a heading below to begin. |
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You can also watch videos, listen to audio, download a
PDF or start the quiz. |
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5.1 Awards and
Conditions |
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5.2 Superannuation |
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5.3 Workers
Compensation |
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5.4 Occupational
Health and Safety |
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5.5 Equal
Employment Opportunity |
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Awards and Conditions |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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Your legal requirements as an employer oblige you to provide a
minimum award for
your employees and offer certain conditions. There is federal
and state legislation relating to workplace awards and
conditions. |
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Many jobs are covered by a federal or state industrial award.
Awards outline the rights
and obligations of
employers and the legally binding minimum wage standards for
employees. These standards ensure that all workers are entitled
to a fair wage depending on the type of work they do. |
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There are also rules regarding employee conditions. Conditions
refer to factors such as the minimum and maximum hours an
employee is required to work, general leave entitlements,
superannuation, casual loadings and other specific entitlements
such as parental or carer's leave. |
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The recent changes in Australia regarding the Work Choices
/Workplace Relations legislation have had a significant affect
on awards and conditions. There are new regulations and changes
currently taking place regarding the different types of awards
that can be offered to employees. Employers need to make
themselves aware of these changes. |
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There is a number of resources available including: |
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Australian
Industrial Relations Commission |
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Australian
Workplace.gov.au |
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Workplace Authority |
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The Australian Fair
Pay and Conditions Standard was established under these
legislation changes. It outlines the minimum employment
conditions including: |
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basic rates of pay and casual loadings |
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maximum hours of work |
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leave entitlements |
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other related entitlements |
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The Australian Fair
Pay Commission provides further information on legal
requirements as an employer. |
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It may be necessary for employers to seek independent legal
advice to assist them in ensuring they are meeting their legal
obligations. |
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Superannuation |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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As an employer, you have a legal obligation to provide
superannuation support to your employees. Superannuation is
savings put aside to provide income upon retirement. The purpose
of compulsory superannuation is to make sure as many people as
possible will have income support when they retire. |
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Employers pay superannuation contributions into a complying
superannuation fund or retirement savings account (RSA). The Australian
Superannuation Guarantee legislation
requires employers to provide contributions for employees as a
percentage of their base earnings. The Australian
Government website provides a list of
links to help you understand superannuation and your
responsibilities as an employer. |
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Employees generally have the right to choose their own
superannuation fund or RSA, however, it's a good idea to |
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have a default fund
available for staff. When an employee begins work for you there
are forms regarding superannuation which must be lodged with the
Australian Taxation Office, available from their website. |
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Contributions of
at least 9% of base earnings must be made each quarter to the
relevant employee superannuation fund or RSA. Employers must
keep records of all contributions made to superannuation funds.
You also have an obligation to report to your employees all
superannuation contributions that you have made. |
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Certain employees may be exempt from receiving superannuation
entitlements. These workers include: |
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those earning less than $450 per month base salary |
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under 18 years old and working less than 30 hours per week |
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those over the age of 70 |
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Refer to
the Superannuation Guarantee Eligibility Tool for further
information on exemptions as they are subject to change. |
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There are
penalties for employers who fail to provide minimum
superannuation contributions for their employees. Employers who
lodge late contributions are also obliged to pay charges to the
ATO. More information can be found on the ATO website. |
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Workers Compensation |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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One of your legal responsibilities as an employer is to provide
workers compensation cover for your employees. Workers
compensation provides valuable protection to cover loss of
earning capacity, medical expenses and rehabilitation costs. |
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All employers must ensure that they have a workers compensation
policy to insure themselves against compensation claims for
workplace related injuries. This cover is vital as compensation
claims can become very expensive, depending on the extent of the
injury and the effect that is has on the workers' ability to
perform their job. |
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When an employee is injured at
work, it is the responsibility of the employer to have a policy
in place that will cover the related expenses of the injury. A
worker may also suffer a loss of earning capacity for either a
period of recovery or for the rest of their lives, depending on
the time it will take them to return to work. |
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Workers compensation also provides for expenses associated with
assisting employees who are returning to work. This may include
training and modification of their workplace and equipment.
Employers should be flexible wherever possible to allow
employees to return to their old job. |
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In the unfortunate event of a workplace related employee death,
workers compensation will provide compensation to
the family. Information on dealing with the Workplace
death of an employee can be found at
the WorkCover NSW website. |
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The Workers Compensation Commission can
provide you with information regarding the legal requirements of
employers. It also has details on what to do if you are an
injured employee. Your relevant state or territory WorkCover
Authorities have additional
information available. |
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Occupational Health and Safety |
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Watch Video |
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Listen to Audio |
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Take Quiz |
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As an employer, it is an essential legal requirement that you
abide by the occupational health and safety (OH&S) regulations.
If you fail to comply with the regulations, you can be exposed
to prosecution and fines. |
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Your obligations as an employer include ensuring: |
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Safe working premises |
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Safe equipment, machinery and substances |
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Safe systems and procedures of work |
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Information, instruction, training and supervision |
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A suitable working environment and facilities. |
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There are national OH&S Standards and Codes of Practice to help
employers understand and meet these |
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obligations. Each
state and territory also provides information on specific OH&S
Acts and Codes of Practice. |
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Workplace health
and safety authorities in each state and territory and
the Australian Safety and Compensation Council (ASCC) have
responsibilities for enforcing the legislation. They also
provide health and safety advice as well as education and
training for employers and employees. |
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It is important for you to note that the legal obligations of
employers vary according to circumstances. You may need to seek
independent legal advice on what is applicable to your specific
situation. |
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Occupational health
and safety standards are not only important from a legal
standpoint. It is in an employer's best interest to keep their
workers safe and healthy, as it will save costs associated with
sick leave, compensation and downtime. There are also
substantial penalties for breaches of the regulations, as
outlined on the Penalties section on the WorkCover NSW website. |
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In situations where there has been a breach of OH&S regulations
or when an accident or injury has occurred in the workplace, an
employee must report the
incident to their employer. The employer may then be required to
report the incident to their insurer or the relevant state
authorities, such as WorkCover NSW.
More information regarding your legal responsibilities as an
employer can be found at Employer
Obligations. |
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Equal Employment Opportunity |
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Take Quiz |
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A factor that you need to be aware of as an employer is the
requirement to provide equal employment opportunities to all
members of the community. There is a range of federal and state
legislation related to equal opportunities and anti
discrimination in the workforce. |
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Employees cannot be discriminated against on the basis of their
race, age, sex, marital status, family status or responsibility,
pregnancy, religious and political beliefs, disability, gender
history or sexual orientation. |
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Equal employment opportunity is about ensuring all job seekers
having equal access to work prospects and positions. This can be
achieved by making sure that workplaces and recruitment
processes are free from all forms of unlawful discrimination and
harassment. There are also programs in place to help people to
overcome past and present disadvantages or prejudices. |
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Groups that have been affected by discrimination when it comes
to employment in the past include: |
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Women |
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Older people |
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Untrained/Unskilled workers |
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Indigenous people |
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People with a disability |
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Foreign workers |
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More information
regarding these groups and the issues they face when seeking
employment can be found on the Equal Employment Opportunity
NSW website. |
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There are a number of schemes and incentives in place to assist
employers with providing equal opportunities for all people in
the working community, some of which are listed below: |
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Employer Demand Demonstration Projects |
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Work Experience
Placement Program |
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Auslan for
Employment for people with a disability. |
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Supported Wage
System to pay people fairly for their productivity. |
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Indigenous
Portal for employers. |
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