and keeping the right people is central to the successful
functioning of your business. Objectives should be set
which will ensure that conditions are created and maintained
to provide profitable and efficient use of your personnel.
- this means advertising vacancies in a variety of ways
and providing adequate information to prospective employees.
Advertising in local newspapers is an excellent method
of attracting applications to job vacancies.
the skills, qualifications and experience required to
do the job. Separate these into "essential"
and "desirable". This will help in selecting
the best applicant for the job.
your nearest Job Network office or the website at www.jobnetwork.gov.au
and find out what assistance you may be entitled to.
option is to use a private employment agency. Private
agencies typically charge between 10% and 15% of the employee's
first year's salary as a fee.
commencing a new employee, make the first three months
of employment probationary. During the probationary period,
the employee should be assessed and, if unsuitable, either
retrained or, where appropriate, dismissed.
Better Business Tip
practical interviewing tip to help you get the best
employee possible: avoid hypothetical questions
such as "How would you (deal with ...)?"
and replace them with specific questions such as
"How have you (dealt with ...) in the past?"
A real example of an action is a far greater indicator
of performance than an imagined guess.
Training the New Starter - informal on-the-job
training is probably the most common training method used,
except for highly skilled or technical positions. Formal
training should also be considered once employees are
Don't forget about inductions once you have selected the
Better Business Tip
about setting up a formal employee performance review
system in your office. If you've ever been an employee
you'll remember how hungry you were for management
feedback. The review process will create a structure
with specific points to cover where you'll be forced
to communicate with your employee about how they're
doing. Make sure you're prepared for a two-way review
Ure can assist you to create a formal review process.
- the majority of employees in Australia are protected
by legally enforceable minimum wage rates, and are generally
entitled to equal pay for work of equal value.
- industrial awards are work codes which establish conditions
of work such as minimum wages, hours of work, overtime,
holidays, minimum periods of notice and other conditions
such as safety requirements. Different industries have
different awards. It is important to understand the awards
pertaining to each position in your business. For more
detailed information on specific awards contact the Award
Enquiry Service on 131628. For pay rates on common awards,
visit the Department of Industrial Relations' website
of Work - the standard working week of most
employees is 38 hours in a five day week, and usually
all time worked in excess of the standard hours or outside
the prescribed time must be paid for at penalty rates.
Refer to the relevant award for the details applying in
Leave - generally staff are entitled to a minimum
four weeks paid annual leave, but this can vary according
to different awards. A loading on holiday pay of 17.5%
or more is prescribed in many awards and most employees
receive 10 or more public holidays per year.
employees are entitled to one week paid sick leave per
annum. However, details of entitlements vary so it is
essential to refer to the relevant award for the details
applying in each case.
of Termination and Severance Payments - a number
of awards may contain specific reference to the period
of notice of termination and also the level of severance
payment based upon years of service.
is also legislation governing what is lawful or unlawful
dismissal. Employees unlawfully dismissed may be entitled
to claim for reinstatement or damages (in the form of
financial compensation). It is, therefore, worthwhile
to seek advice before proceeding with a dismissal.
Laws - in NSW it is generally against the law
for you, or any of your employees or agents, to discriminate
against or harass job applicants, employees, or those
you provide services for, on the basis of their (or any
of their colleagues', friends' or relatives') sex, pregnancy,
marital status, race (including colour, ethnic background,
descent, national identity and ethno-religion), homosexuality,
disability, transgender or age.
Union Members - union membership is not compulsory
in Australia, but some awards give preference to union
are a number of compulsory requirements to be aware of
when employing staff.
and Workers' Compensation
- minimum standards exist for physical working conditions
to ensure occupational health and safety (OH&S). It
is compulsory for all employers to insure for workers
employing others must obtain an insurance policy that
covers the full amount of the employer's liability under
the Workplace Injury Management and Workers Compensation
Act 1998 and the Workers Compensation Act 1987 in respect
of all workers employed. Penalties for failure by employers
to take out workers compensation insurance were increased
from 1 January, 1996, including the introduction of imprisonment
for up to six months as a penalty option under Section
155 of the Workers Compensation Act 1987. You are liable
for all workers recognised under the law for workers compensation.
Contact the Workcover Authority for more information on
- for specific details on your obligations, contact your
Accountant at Perry Ure.
(PAYG) - from 1 July, 2000, the Pay-As-You-Go
(PAYG) system replaced the PAYE system.
the PAYG system business receives a single tax statement
providing a business's total net tax payable (or refundable)
across a range of business taxes.
practical terms, the PAYG system is comprised of:
PAYG return form is the same Business Activity Statement
(BAS) which is utilised for GST.
Book - the law requires that every business
must keep wages records if the business has any employees.
There should be a record for each employee showing details
of all wages and deductions, as well as the "take-home"
Slips - all employees must be provided with
pay slips. These must include the employee's name and
classification, date of payment, dates relating to pay
period, gross pay (including overtime), tax deductions
and particulars of all deductions, including employee
superannuation contributions and net pay.
Agreements - these are agreements between the
employer and employee(s) to settle their own working arrangements
away from centralised controls. Agreements are to be registered
with the Industrial Registrar who ensures minimum conditions
are met. For more information contact the Department of
Industrial Relations on (02) 9243 8888.