Understanding employment law for your business

Finding and keeping good staff is critical to the success of your business, so to keep staff happy and ensure your business complies with the relevant employment law, you must understand your obligations to employees, including safety, equal opportunity and wrongful dismissal. Talking with an employment law solicitor may help.

Employment contracts

The first step when hiring a new employee is to present them with a contract of employment, says Michael Solari, solicitor and principal of Solari Legal. This document then forms the basis of their employment. 

"The second thing is to start employees off on a three-month probationary basis," says Michael. "If they don't work out, this allows you to terminate their employment without being subject to a wrongful dismissal claim."

Occupational Health and Safety (OH&S)

All businesses must adhere to OH&S laws in providing a safe and healthy working environment for employees.

"You've got a very high obligation in relation to OH&S and the penalties for non-compliance are extremely severe," says Michael. 

OH&S obligations will differ between businesses. Offices, for example, have vastly different safety requirements to factories. To understand your obligations, contact your state workplace authority:

• ACT WorkCover
• NT WorkSafe
• SafeWork SA
• WorkCover NSW
• Workplace Health and Safety Queensland
• Workplace Standards Tasmania
• WorkSafe Victoria
• WorkSafe Western Australia

Equal opportunity

Michael says businesses must understand employment law in relation to equal opportunity and anti-discrimination in recruiting employees and in their day-to-day dealings with staff.

Discrimination is treating someone unfairly or denying opportunities on the basis of their:

• age
• disability
• status as an Aboriginal or Torres Strait Islander
• race
• gender
• education
• religious or political beliefs
• sexual orientation
• pregnancy
• marital status
• parental status

Like breaches of safety legislation, complaints of discrimination or breaches of human rights under federal laws can be costly to your business, both in financial and reputational terms.

Wrongful dismissal

According to Michael, protecting your business from claims of wrongful dismissal begins with the employment contract.

"Clearly you put in the contract your entitlement to terminate," he says.

"There are laws relating to termination notice or payment in lieu if an employee is over 45. You also need to establish termination processes for poor performance, which will vary depending on your company structure."

Protect your business 

If you breach your obligations to an employee, they may be entitled to make acclaim against you for compensation, says Michael.

"Certain other breaches will result in the possibility of criminal prosecution," he says. "It really depends upon the nature of the breach as to whether it carries a criminal or financial penalty." 

Get the right advice 

As an employer you have legal rights and obligations to your staff, so to better manage and retain your valuable workers, ask an employment-law solicitor to establish where you stand in relation to OH&S, equal opportunity and wrongful dismissal.