HR Tools For Business

Running an Australian business can be challenging. You need to hire good workers, manage them productively and exit workers seemlessly as needed. You need to keep people safe. You also need to ensure compliance with some of the world’s most complex employment laws.

Its no surprise that more and more business owners and managers are being prosecuted for breaching Australian employment laws.

Last year alone, Fair Work Inspectors issued almost $500,000 in on-the-spot fines. The Fair Work Ombusdman also secured over $4.4 million dollars in court-ordered penalties and recovered $40,204,976 for workers.

HR Laws in Australia

The majority of Australian businesses – including small business – are now covered by the Fair Work Act 2009. It includes 10 National Employment Standards that you must provide to all employees. There are also 122 Modern Awards with minimum pay rates for employees and when you need to pay penalty rates, allowances and loadings. There are also The Fair Work Regulations which set out the compulsory records that you must issue and keep and for how long.

On the spot fines

Fair Work Inspectors may issue on the spot infringement notices where they reasonably believe an employer has contravened the record-keeping and pay slip obligations contained in the Fair Work Act 2009 and the Fair Work Regulations 2009.

The maximum fines payable from an infringement notice are:

• $630 per contravention for an individual
• $3150 per contravention for a body corporate.

Court ordered penalties

Fair Work Inspectors can also recommend taking matters to court. If this happens and litigation is successful, employers may face court orders, including:

• penalties of up to $12,600 per contravention for an individual
• penalties of up to $63,000 per contravention for a body corporate
• orders to pay the employee what they’re owed (plus interest)
• orders granting an injunction or interim injunction
• orders awarding the employee compensation for loss suffered
• orders to reinstate an employee, which may mean the employee must be given their job back
• orders to correct the discrimination.

Personal Fines

Individuals can also be held liable as an accessory if their employer breaches the Fair Work Act.

• Are you responsible for HR, payroll or administrative functions?
• Do you try and obtain accurate advice?
• Do you alert clients to possible breaches?
• Do you actively question instructions if you have doubts regarding legality?

If not, you may be at risk of personal fines under Section 550 of the Fair Work Act 2009.

Need help with HR and Compliance?

Contact Workforce Guardian, the HR and employment law experts.

Phone 1300 659 563 or visit: www.workforceguardian.com.au