Employee entitlements: your obligations to staff

Understanding employee entitlements is more than just employers being legally obliged to provide for their staff. Every business should understand its employer obligations - and it pays for employees to know them too.

"Businesses that do not adhere to the minimum requirements risk being fined," says Tiffany Quinlan, National Human Resources Manager at Randstad.

"They are also more likely to have disgruntled, disaffected staff, which can have a direct impact on the productivity of the business."

Legal requirements

Some businesses are covered by the federal industrial relations system, while others are covered by state systems. Regardless of which system your business operates under, certain obligations must always be adhered to.

These employer obligations cover: 

• leave provisions, such as annual, long-service, personal and sick leave
• maintaining occupational health and safety standards
• equal opportunity.

Employer obligations are the base elements of any employment contract. Things like salary, job description, key performance indicators and behavioural standards may be included in the employment contract alongside these minimum requirements.

All-in agreement

The minimum employer obligations exist regardless of what sort of agreement is entered into through the employment contract.

"Whether it is an individual or a collective agreement, these obligations must be adhered to," says Tiffany. "If they aren't and the employee finds out and takes action, the agreement becomes null and void. You'd have to go back to square one and renegotiate, and the employer would be looking at significant fines too."

Benefits of knowing and obeying these laws

Staff members who believe they are being treated unfairly or exploited are less likely to work as part of a cohesive team. They are more likely to lose focus, which has a direct impact on the productivity of the business. And ill discipline can spread through an organisation like a disease. 

However, staff who know their employers are adhering to all their workplace obligations are more likely to: 

• remain loyal to the business
• have higher morale and therefore higher levels of productivity
• talk up your business and brand
• attempt to resolve disputes before they escalate
• not exploit the business or its owners/managers, such as taking excessive sick leave. 

A business with loyal, passionate, dedicated staff is far more likely to succeed.

Sourcing the information

All Australian employers and employees should know which industrial relations system their business operates under and what the legal minimum obligations are.

The federal legislation (the Fair Work Act) governing employer obligations changes with some regularity, so the right advice is essential in keeping up to date. Contact an employment consultant today and discuss how knowing these obligations can help your business succeed.