Workplace bullying, as defined by the Fair Work Act, involves repeated unreasonable behaviour towards a worker or group of workers that poses a risk to their health and safety. Importantly, actions considered reasonable management practices carried out in a reasonable manner are not classified as bullying. Examples of bullying behaviour include intimidation, exclusion, spreading malicious rumours, and setting unreasonable work expectations. These actions can have serious consequences for individuals, including anxiety, depression, and other health issues, emphasising the need for proactive intervention.

As a small business owner, receiving a complaint about workplace bullying can feel overwhelming. But ignoring the issue is not an option. Bullying has serious consequences—not just for the individuals involved but for your entire workplace culture and business reputation. Addressing complaints promptly and effectively is essential to maintaining a positive and productive environment.

The first step? Listen.

Take every complaint seriously, whether it comes from an employee, contractor, or volunteer. Investigate the matter thoroughly, documenting every step of the process to ensure fairness and transparency. A proactive response demonstrates your commitment to a respectful workplace and can protect your business from potential legal risks.

At Fresh HR Insights, we specialise in helping small businesses confidently navigate these situations. Our team offers expert guidance on handling workplace bullying complaints, including investigating effectively, resolving conflicts, and implementing policies that prevent future issues.

Don’t wait for small issues to escalate—reach out today to create a workplace where everyone feels safe and valued.

Bullying is a safety issue, not just an HR one

It is easy to think of bullying as a people problem that sits with HR. Legally, it sits in two places at once. Alongside the Fair Work Act, workplace bullying is a psychosocial hazard under work health and safety law, which means you have a positive duty to identify the risk and do something about it before harm occurs, not only to respond once a complaint lands. The Fair Work Commission can also make a stop bullying order, and separately a stop sexual harassment order. These are not compensation claims. They are orders telling you what to do differently, and an employee can apply while still employed. In practice that means a matter you thought was quietly simmering can become a formal proceeding without any dismissal having occurred.

Dealing with a bullying or harassment complaint?

These situations are stressful, and how you respond in the first few days really matters — both for the people involved and for protecting your business. You don’t have to work out the next step on your own. We help small businesses investigate fairly, resolve the issue, and put policies in place so it doesn’t happen again. Not sure how exposed you are? Our HR Health Check ($297) finds the gaps before they become claims. Book a confidential chat — or start with an HR Health Check

Casual employees are vital in many small businesses, offering flexibility to meet seasonal demands and fluctuating workloads. But what exactly defines a casual employee, and what are your obligations as an employer?

What is a casual employee?

Since 26 August 2024, the definition has changed. A person is a casual employee if, when the offer of employment is made, there is no firm advance commitment to continuing and indefinite work, and they are entitled to a casual loading. The important shift is how that is assessed. It is no longer decided by the words in the contract alone. The test looks at the real substance, practical reality and true nature of the relationship, including how the arrangement actually runs day to day. If someone has worked the same shifts, on the same roster, for two years, calling them a casual in the paperwork will not settle the question.

Key rights of casual employees

• Casual loading, a higher hourly rate to compensate for the absence of paid leave and notice.
• The same protections as everyone else: work health and safety, anti-discrimination, general protections, and the right to a safe workplace.
• Some National Employment Standards entitlements, including unpaid carer’s leave, unpaid compassionate leave, community service leave, and 10 days of paid family and domestic violence leave.
• The right to move to permanent employment through the employee choice pathway.

Casual conversion: what actually happens now

The old system, where the employer had to make an offer, is gone. Under the employee choice pathway, the initiative sits with the employee.

• A casual employee can give you written notification that they want to change to permanent employment once they have been employed for at least 6 months, or 12 months if you are a small business employer with fewer than 15 employees.
• They must reasonably believe they no longer meet the definition of a casual employee.
• You must consult the employee, and then respond in writing within 21 days.
• You can only refuse on specific grounds: they still meet the casual definition, there are fair and reasonable operational grounds, or accepting would mean breaching a recruitment or selection requirement in a law.
• If you refuse, your written response must explain why. You can take a disagreement to the Fair Work Commission.

The Casual Employment Information Statement

You must give every casual employee the Casual Employment Information Statement when they start. If you are a small business employer, you also give it again after 12 months. If you have 15 or more employees, you give it at the start, at 6 months, at 12 months, and then every 12 months after that.

It is a free download from the Fair Work Ombudsman, and it takes a minute to add to your onboarding pack. Not providing it is a straightforward breach, and it is the sort of thing that turns up first when someone starts looking.

How to get it right

Put the terms of engagement in a written casual employment agreement. Keep an eye on the pattern of work, not just the paperwork, because the test looks at the pattern. Diarise the 6 or 12 month mark so a notification does not catch you unprepared, and keep a record of any conversation about conversion.

Not sure whether your casuals are still casuals? Book a free 30-minute chat, and we will work through it together.

Understanding Employee Dismissal: A Guide for Small Business Owners

Navigating the complexities of employee dismissal is crucial for small business owners to ensure compliance with Australian employment laws and to maintain fair workplace practices.

As a small business owner, handling employee dismissals can be daunting—but it’s essential to get it right. Fair dismissal practices protect both your business and your employees, ensuring compliance with the law and maintaining a respectful workplace environment.

Under the Fair Work Act, employers must provide appropriate notice periods, ensure final pay is calculated correctly, and avoid dismissals that are harsh, unjust, or unreasonable. If you’re a small business with fewer than 15 employees, the Small Business Fair Dismissal Code applies, offering a clear framework to guide you.

Here’s what you need to know:

✔️ Summary Dismissal: Immediate termination is valid in cases of serious misconduct (e.g., theft, violence).
✔️ Performance-Based Dismissal: Employees must be given valid reasons for termination and an opportunity to improve.
✔️ Documentation Matters: Record all warnings and communications to demonstrate compliance with the Code.

By following these steps, you can minimise risks and ensure fairness. Need help navigating this process? Visit the Fair Work Ombudsman or seek professional advice.

Remember, fair dismissals are not just a legal obligation—they’re key to protecting your reputation and fostering a positive workplace culture.

Key Considerations When Ending Employment

When terminating an employee, it’s essential to adhere to the Fair Work Act 2009, which outlines the legal requirements for dismissal, including providing appropriate notice periods, final pay calculations, and ensuring the dismissal is not harsh, unjust, or unreasonable.

Small Business Fair Dismissal Code

For businesses with fewer than 15 employees, the Small Business Fair Dismissal Code offers a simplified framework to ensure dismissals are conducted fairly and legally.

Key aspects of the Code include:

• Summary Dismissal: Immediate termination without notice is permissible if an employee’s conduct is sufficiently serious, such as theft, fraud, or violence.
• Other Dismissals: For performance-related issues, employers must provide a valid reason for dismissal and allow the employee to respond.
• Procedural Fairness: Employers should document the process, including any warnings and the employee’s responses, to demonstrate compliance with the Code.

Adhering to the Small Business Fair Dismissal Code can protect your business from unfair dismissal claims.

Best Practices for Small Business Employers

• Documentation: Keep detailed records of all employment-related decisions, including performance reviews and any disciplinary actions.
• Clear Communication: Ensure employees know their performance expectations and any improvement areas.
• Seek Professional Advice: Consult an HR professional or legal advisor to navigate complex dismissal situations.

By following these guidelines, small business owners can manage employee dismissals effectively, ensuring compliance with legal standards and fostering a fair workplace environment.

The numbers that apply from 1 July 2026

• Minimum employment period: 12 months if you employ fewer than 15 people, 6 months if you employ 15 or more. Below that, an employee generally cannot bring an unfair dismissal claim.
• High income threshold: $190,100. An employee earning at or above this, who is not covered by an award or agreement, cannot bring an unfair dismissal claim.
• Maximum compensation for unfair dismissal: $95,050, or 26 weeks’ pay, whichever is lower.

Both figures are indexed every 1 July, so they move each year. And a word of caution about the minimum employment period. It keeps people out of the unfair dismissal jurisdiction, but it does nothing at all for general protections, discrimination or unlawful termination claims. Those have no minimum service requirement and no compensation cap. A short-service dismissal handled badly is not a safe dismissal.

Facing a dismissal and want to get it right?

Getting a termination wrong is one of the costliest mistakes a small business can make — unfair dismissal claims, back pay, and a whole lot of stress. Our Termination Sprint ($695) walks you through it properly: the process, the paperwork, the notice and final pay, and the correspondence you need to do it fairly and defensibly. No second-guessing.  Get the Termination Sprint — or book a free 30-minute chat first if you’d like to talk it through.

What Are Enterprise Agreements?  A Simple Explanation for Small Business Owners

Enterprise agreements are legally binding documents that outline employees’ pay and conditions, tailored to a workplace’s specific needs. These agreements are negotiated between employers and employees (or their representatives) and, once approved by the Fair Work Commission, replace any applicable awards or previous agreements. They provide a structured and flexible way to manage workplace terms, ensuring both employers and employees benefit from clearly defined arrangements.

Enterprise agreements can simplify complex award terms, provide certainty about entitlements, and foster a collaborative work culture. They are made through enterprise bargaining, where representatives negotiate on conditions such as pay, leave, and work hours. Employees vote on the agreement, and the Fair Work Commission ensures it meets all legal requirements, including offering better terms than existing awards.

Once approved, the agreement becomes enforceable, with non-compliance potentially leading to serious penalties.

A note on the better off overall test

Every agreement has to pass the better off overall test, which compares it against the award that would otherwise apply. Since June 2023 that has been a global assessment rather than a line by line comparison, and the Commission takes a more practical approach to approval, including the ability to work with the parties to fix problems rather than simply refusing.

That said, for most small businesses an enterprise agreement is more machinery than the situation needs. The award plus a well-drafted contract usually does the job. It is worth a conversation before you commit to bargaining.

 Need support? Let Fresh HR Insights be your partner in supporting your Human Resource needs and employee relations. Contact us now to take the first step! book a FREE 30-minute consult with our expert – book here

Implementing Flexible Working Arrangements in Your Small Business

Flexible working arrangements allow employees to adjust aspects of their work, such as hours, patterns, or locations, to balance professional and personal commitments better. For small business owners, embracing flexibility can enhance employee satisfaction, boost productivity, and improve efficiency.

Understanding Flexible Working Arrangements

Flexible working can take various forms, including:

• Adjusting Start and Finish Times: Allowing employees to begin and end their workday at times that suit their personal needs.
• Job Sharing: Splitting a full-time role between two employees.
• Compressed Work Hours: Working the standard number of hours over fewer days.
• Remote Work: Permitting employees to work from home or another location.

These arrangements can help employees maintain a work-life balance and assist employers in improving the productivity and efficiency of their business.

Who can make a request

Not every employee has the right to request flexible working. Two things have to line up. The employee needs at least 12 months of continuous service, and they need to fall within one of the prescribed circumstances:

• they are pregnant
• they are a parent, or have responsibility for the care, of a child who is school age or younger
• they are a carer
• they have a disability
• they are 55 or older
• they are experiencing family or domestic violence, or they are caring for or supporting a member of their household or immediate family who is

Casual employees can request too, if they have been employed on a regular and systematic basis for at least 12 months and reasonably expect that to continue.

How you have to respond

The obligations changed on 6 June 2023 and they are more demanding than most employers realise. You cannot simply consider the request and write back with a no.

• Discuss the request with the employee.
• Genuinely try to reach an agreement.
• Have regard to the consequences of refusal for the employee.
• Respond in writing within 21 days.
• If you refuse, you can only do so on reasonable business grounds, and your written response must explain those grounds and set out any changes you would be willing to make instead.

Reasonable business grounds can include excessive cost, a significant impact on efficiency or customer service, or the impracticality of changing other employees’ arrangements. What they cannot be is a general preference for having everyone in the office.

If you cannot agree, either of you can take the dispute to the Fair Work Commission, which can mediate and, if that does not resolve it, arbitrate and make binding orders. That is a meaningful change. A refusal is now reviewable, so the reasoning you put in writing is the reasoning you will be held to.

Overview of General Protections for Small Business Owners

General Protections under the Fair Work Act 2009 are designed to safeguard workplace rights, protect freedom of association, and prevent workplace discrimination and adverse action. These protections apply to employees, contractors, and prospective workers. They aim to ensure that individuals can exercise their workplace rights without fear of retaliation or unfair treatment.

 Protected Workplace Rights Include:

• The right to make inquiries or complaints about employment conditions.
• The right to participate or not participate in lawful industrial activities.
• Protection from workplace discrimination based on attributes like race, sex, age, disability, and more.
• The right to temporary leave due to illness or injury.

What Small Business Owners Should Avoid

 To Prevent General Protections Claims (With or Without Dismissal):

• Don’t dismiss an employee for exercising workplace rights (e.g., lodging a complaint or taking leave).
• Ensure all decisions are well-documented and justified to avoid claims of unlawful treatment.
• Avoid actions like reducing hours or demoting employees as a form of retaliation.

Regarding Adverse Action:

• Adverse action includes termination, altering the employee’s position to their detriment, or discriminating against them.
• Avoid taking adverse action because of an employee’s protected attribute (e.g., pregnancy, race) or their involvement in lawful workplace activities.

Why general protections deserve more attention than they usually get

Most small business owners have heard of unfair dismissal and far fewer have thought seriously about general protections. It should be the other way around.

• There is no minimum employment period. A person dismissed in week two can bring a claim.
• There is no compensation cap. Unfair dismissal is capped. This is not.
• The burden of proof is reversed. Under s361, once an employee alleges the action was taken for a prohibited reason, it is presumed to be so unless you prove otherwise. You have to show the real reason, and you show it with your records.

The protected attributes have also broadened. Alongside race, sex, age, disability and the rest, they now include breastfeeding, gender identity, intersex status, and being subjected to family and domestic violence.

None of this should make you afraid to manage your team. It should make you write things down as you go, so that when you do act, the genuine reason is visible in the file rather than only in your memory.

Need support? Let Fresh HR Insights be your partner in supporting your Human Resources needs and employee relations. Contact us now to take the first step!

Book a FREE 30-minute consult with our expert – book here –https://calendly.com/freshhrinsights/30min

Supporting Small Business Owners to Prevent and Manage Harassment in the Workplace

 Workplace harassment is a serious issue that can create a hostile environment, damage employee morale, and expose businesses to legal liabilities. As a small business owner, it’s your responsibility to ensure your workplace is free from harassment, including sexual, racial, and disability-related harassment. Here’s what you need to know.

What You Should NOT Do

1. Ignore Complaints: Dismissing or failing to act on harassment complaints can escalate the issue and lead to legal consequences.
2. Engage in Discriminatory Behaviour: Making jokes, comments, or decisions based on race, gender, disability, or personal matters is prohibited under anti-discrimination laws.
3. Allow a Toxic Culture: Turning a blind eye to offensive jokes, posters, or comments creates an unsafe workplace for your employees.

What You NEED to Do

1. Implement Clear Policies: Create and communicate anti-harassment policies that define unacceptable behaviours and outline complaint procedures.
2. Provide Training: Educate employees and managers on recognising and addressing harassment, including bystander intervention strategies.
3. Take Complaints Seriously: Investigate all complaints promptly and fairly. Maintain confidentiality and take appropriate action against perpetrators.
4. Comply with Legal Obligations: Familiarize yourself with relevant legislation such as:
   • Sex Discrimination Act 1984: Prohibits unwelcome sexual advances or conduct that offends, humiliates, or intimidates.
   • Racial Discrimination Act 1975: Prohibits acts likely to offend or insult based on race, colour, or national origin.
   • Disability Discrimination Act 1992: Prohibits harassment related to an employee’s disability.
5. Promote a Respectful Culture: Foster an inclusive and respectful workplace where harassment is actively discouraged.

By taking these proactive steps, you not only fulfil your legal obligations but also build a positive and productive environment for your team.

The positive duty: you have to act before anything happens

This is the change that reset the whole area, and a lot of small businesses still have not caught up with it. Under the Sex Discrimination Act 1984 you have a positive duty to take reasonable and proportionate measures to eliminate, as far as possible, sexual harassment, sex discrimination, sex-based harassment, hostile workplace environments and related victimisation. Read that again: eliminate, as far as possible. The duty is not triggered by a complaint. It exists right now, whether or not anything has ever happened in your workplace. The Australian Human Rights Commission has had enforcement powers to inquire into compliance since December 2023.

Reasonable and proportionate is judged against your size and resources, so nobody expects a six person business to run what a bank runs. But it does expect something: a policy people have actually read, training, a reporting path that does not require someone to report to the person they are complaining about, and evidence you have turned your mind to the risk.

Queensland: you need a written prevention plan

If you operate in Queensland, this one is specific to you and it has been in force since 1 March 2025. Under s55H of the Work Health and Safety Regulation 2011 (Qld), if you identify a risk to health and safety from sexual harassment or sex or gender-based harassment, you must prepare and implement a written prevention plan. The plan has to state each identified risk, identify the control measures you have put in place or will put in place, and be set out in a way your workers can readily access and understand. You must prepare it in consultation with your workers. Queensland is currently the only state to put this in work health and safety legislation. In practical terms, almost every workplace carries some level of risk, so for most Queensland businesses the honest answer is that a plan is required. The regulator can issue improvement notices and infringement notices for not having one.

The Fair Work Commission can now deal with sexual harassment directly

Sexual harassment in connection with work is prohibited under the Fair Work Act, and a worker can apply to the Commission to deal with it. There is no minimum employment period, the application can be made while the person is still employed, and the Commission can make orders including compensation. Employers can also be vicariously liable for harassment by their workers unless they took all reasonable steps to prevent it. Which brings it back to the same place: the policy, the training and the plan are not paperwork for its own sake. They are the reasonable steps.

Examples of Harassment

• Sending explicit or racially offensive emails or messages.
• Displaying offensive or pornographic materials.
• Making derogatory comments or jokes about race, disability, or gender.
• Asking intrusive personal questions.

Dealing with a bullying or harassment complaint?  These situations are stressful, and how you respond in the first few days really matters — both for the people involved and for protecting your business. You don’t have to work out the next step on your own. We help small businesses investigate fairly, resolve the issue, and put policies in place so it doesn’t happen again. Not sure how exposed you are? Our HR Health Check ($297) finds the gaps before they become claims. Book a confidential chat — or start with an HR Health Check

I – Independent Contractors

Getting this wrong is expensive, and it is one of the easiest mistakes to make in good faith. A lot of small businesses engage someone as a contractor because that is what both parties wanted, the person has an ABN, and it seemed simpler. None of those three things settles the question.

The test changed on 26 August 2024

Section 15AA of the Fair Work Act now sets out a whole of relationship test. Whether someone is an employee or a contractor is worked out by ascertaining the real substance, practical reality and true nature of the relationship. You look at the terms of the contract and at how the contract is actually performed in practice. That is a genuine shift. Before this, the written contract carried most of the weight. Now, a well drafted contractor agreement that does not match what happens day to day will not protect you.

What the test actually looks at

• How much control you have over how, when and where the work is done.
• Who carries the financial risk, and whether the person can make a profit or a loss.
• Who supplies the tools, equipment and vehicle.
• Whether the person can delegate or subcontract the work to someone else.
• Whether they work for others, or in reality only for you.
• Whether they present to the world as part of your business, in your uniform, on your systems.

No single factor decides it. The picture as a whole does.

Sham contracting

Sham contracting is representing an employment relationship as a contracting one. It is unlawful, and the defence has been tightened. It is no longer enough that you were not reckless. You now have to show that at the time you made the representation, you reasonably believed the person was a contractor. Ignorance or an unreasonable assumption will not get you there.

Two other things worth knowing

Contractors can now apply to the Fair Work Commission about unfair contract terms in a services contract, and the Commission can set aside, amend or vary those terms. Separately, a contractor earning above the contractor high income threshold can give an opt out notice preserving their contractor status under the new definition. That threshold is $190,100 from 1 July 2026. And a reminder that catches almost everyone: even where someone genuinely is a contractor, if they are engaged wholly or principally for their labour, you are still required to pay superannuation for them. Contractor status does not switch off super.

What to do about it

If you have people working as contractors, look at the relationship rather than the paperwork. Would an outsider watching for a week say that person is running their own business, or working in yours? If you are not sure, that uncertainty is the answer you needed.

Worried about how you have classified someone? Book a free 30 minute chat and we will work through it before anyone else does.

J – Job Descriptions

A good job description does more than list duties — it’s the first impression a candidate gets of your business, and it quietly does a lot of heavy lifting behind the scenes. Get it right and you attract the right people, set clear expectations from day one, and give yourself something solid to lean on later if performance or conduct ever becomes an issue. Here’s how to write one that works, especially for the niche roles small businesses so often need to fill.

Understand the role before you write a word. Take time to work out what the role actually involves day to day. Chat with the people already doing similar work, or anyone who’ll manage the position, to pin down the real skills and experience needed. This clarity saves you from writing a wish-list that no human could ever meet — and helps you recognise the right candidate when they apply.

Use clear, specific language. Skip the jargon and the gimmicks. “Sales Specialist” will always beat “Sales Ninja” or “Marketing Guru” — plain titles are clearer for candidates and far easier to find in a search. Spell out the key responsibilities and the must-have skills so applicants can genuinely assess whether the role suits them before they apply. The more specific you are, the better the quality of applications you’ll receive.

Separate the must-haves from the nice-to-haves. Be honest about what’s truly essential versus what you’d merely like. Long lists of “essential” requirements scare off good candidates — particularly women and people from under-represented groups, who tend not to apply unless they meet nearly every criterion. Keep the essentials genuinely essential.

Show the growth on offer. Where there’s room to develop, learn, or progress, say so. Highlighting career paths and development opportunities attracts people who are looking to stick around and invest in your business — not just fill a gap for six months.

Let your culture show through. Your job description should sound like your business. A little personality helps the right people picture themselves on your team and self-select in — and helps the wrong-fit candidates self-select out, which saves everyone time.

Be upfront about pay and benefits. Including a salary range respects the candidate’s time and yours, and filters for people comfortable with the level on offer. List the real perks too — flexible hours, professional development, extra leave, whatever you genuinely provide. Transparency here builds trust before you’ve even met.

Write inclusively. Use gender-neutral, bias-free language and focus on the skills and experience the role actually requires. An inclusive job description widens your talent pool and signals the kind of workplace you’re building. (It’s also smart risk management — the wording of an ad can itself raise discrimination issues if it excludes people on protected attributes.)

A quick Australian note: your job description isn’t just a marketing tool — it shapes the role’s award classification, defines the “inherent requirements” of the position, and can become a key document if you ever need to manage performance or defend a dismissal. It’s worth getting it right from the start. Nail these, and your job descriptions will pull in stronger candidates, set the right tone, and make your whole recruitment process smoother.

Need a hand with your job descriptions? Let’s chat — book a FREE 30-minute consult and we’ll help you get them right.

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K – Keeping Records (The Importance of Documentation)

If there’s one habit that quietly protects a small business more than almost any other, it’s good record-keeping. Solid documentation keeps you compliant with Fair Work’s record-keeping obligations, but its real value shows up when something goes wrong — a performance issue, a grievance, an unfair dismissal claim. The business with clear, contemporaneous records is the business that’s protected. Here’s why it matters and how to do it well.

Why keeping records is essential

• It protects you legally. When a dispute lands — an unfair dismissal claim, a general protections application, a grievance — your records are your evidence. The Fair Work Commission and the courts expect thorough, factual documentation, and the employer who can produce a clear paper trail is in a far stronger position than one relying on memory.
• It keeps things objective. Documenting incidents, meetings and performance conversations at the time they happen creates a factual account that’s hard to argue with. Memories fade and stories shift; a dated, factual note doesn’t. It’s your defence against the “he said, she said” that so many workplace disputes descend into.
• It leads to better decisions. Writing things down forces you to slow down and think clearly rather than react. Over time, your notes also reveal patterns — recurring lateness, repeated conduct issues — that help you manage performance fairly and decide on the right next step.
• It can stop a claim before it starts. Employees are far less likely to pursue a claim when they know the events were clearly recorded at the time. Good records don’t just help you win disputes — they often prevent them.

Best practices for keeping records

• Stick to the facts. Record what was said and done — ideally using direct quotes and specific examples. Leave out opinions, emotional language and anything derogatory. Write every note as though it may one day be read aloud in a tribunal, because it might be.
• Be timely. Document events as soon as possible after they happen, while the detail is fresh and accurate. A note made the same day carries far more weight than one written up weeks later.
• Keep it confidential. Store records securely and limit access to those who genuinely need it. Employee records contain personal information and must be handled with care.
• Be consistent. Apply the same record-keeping standards to everyone. Consistency is what makes your process fair — and fairness is exactly what’s tested if a decision is ever challenged.
• Be transparent where appropriate. Share relevant records with the employee — performance notes, meeting summaries — and give them a chance to respond. It builds trust and strengthens the record, because it shows the employee was aware and had the opportunity to put their side.

What the law actually requires you to keep

Alongside the good habits above, there are hard obligations under the Fair Work Regulations. Employee records must be kept for seven years, in a legible form and in English, and they must be private and not false or misleading. You cannot alter a record except to correct a genuine error. You need to keep records covering the basics of employment, pay, hours, leave, superannuation, and how employment ended. Payslips must be issued within one working day of payday, even if the person is on leave.

The part most employers have never heard of

Section 557C of the Fair Work Act. If an employee alleges they were underpaid and you cannot produce the records you were required to keep, the burden shifts to you to disprove the allegation. Sit with that for a moment. Without records, you are not being asked to defend your position. You are being asked to prove a negative. That is the practical reason record keeping matters more than almost anything else on this page. The Fair Work Ombudsman can also issue on the spot infringement notices for record keeping and payslip breaches, without going anywhere near a court.

Get into the habit of documenting as you go, and you’ll build a quiet layer of protection around your business — one that’s there exactly when you need it most.

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Need a file note template – we have that covered – you can download one HERE

L – Leave Entitlements

Understanding employee leave entitlements is crucial for small business owners in Australia to stay compliant with the National Employment Standards (NES) and foster a fair workplace. Here’s an overview of the key leave types:

Annual Leave — Full-time employees are entitled to 4 weeks of paid annual leave per year, accruing progressively based on their ordinary hours worked (pro rata for part-time employees). One exception worth knowing: employees who meet the definition of a shiftworker under their award are usually entitled to 5 weeks of annual leave rather than 4. Check the definition in your award before you assume the standard four applies.

Sick and Carer’s Leave (Personal Leave) — Full-time employees receive 10 days of paid personal leave each year, used for personal illness or to care for an immediate family or household member.

Parental Leave — Eligible employees are entitled to up to 12 months of unpaid parental leave on the birth or adoption of a child, with the right to request a further 12 months. Separately, the government-funded Paid Parental Leave scheme reached its full 26 weeks (130 days) for children born or adopted on or after 1 July 2026, with 20 days reserved for each parent in a couple. The government funds that payment at the National Minimum Wage, not you, although you will often be the paymaster passing it through. Since 1 July 2025, the ATO also pays 12% superannuation on Parental Leave Pay, directly to the employee’s fund. That is an ATO payment, not an employer one, so there is nothing for you to calculate or report.

Long Service Leave — Employees with a long period of continuous service with the same employer are entitled to long service leave. The specific entitlement varies by state and territory.

Compassionate and Bereavement Leave — Employees are entitled to 2 days of compassionate leave per occasion, available on the death or life-threatening illness or injury of an immediate family or household member (and on a miscarriage or stillbirth).

Family and Domestic Violence Leave — All employees, including casuals, are entitled to 10 days of paid family and domestic violence leave each year. The full 10 days is available upfront from the start of each 12-month period — it doesn’t accrue gradually and doesn’t carry over.

Community Service Leave — Employees can take leave for eligible community service activities, such as voluntary emergency management or jury duty. Jury duty is generally paid (make-up pay) for a limited period, while other community service leave is unpaid.

Remember, these are the minimum standards. Actual entitlements can be more generous depending on the employee’s award, registered agreement, or contract — so it’s always worth checking the relevant instrument alongside the NES.

Annual leave loading is an additional payment made to employees in Australia when they take annual leave. Typically set at 17.5% of the employee’s base pay rate, this extra compensation is designed to offset the potential loss of regular overtime or penalty rates that employees might miss out on during their leave.

Historical Context

The concept of leave loading emerged during the 1960s and 1970s, a period marked by significant Labor movements in Australia. Workers, particularly in industries with substantial overtime and shift work, expressed concerns about reduced earnings when taking annual leave, as they missed out on additional income from overtime and penalties. To address this disparity, unions advocated for an extra payment during annual leave.

In 1974, a standard leave loading rate of 17.5% was established to compensate for these lost earnings.

Employer Obligations

As an employer, whether you’re required to pay annual leave loading depends on the terms outlined in the applicable modern award, enterprise agreement, or individual employment contract. Many modern awards and agreements include provisions for leave loading, making it a mandatory entitlement for covered employees.

If your employees are covered by such an award or agreement that stipulates leave loading, you are obligated to pay it. It’s important to note that if an employee is entitled to annual leave loading during their employment, this loading must also be paid out on any unused annual leave upon termination.

Key Considerations for Employers

• Review Employment Instruments: Examine the relevant awards, agreements, or contracts to determine if leave loading applies to your employees.
• Incorporation into Salary: In some cases, leave loading may be incorporated into an employee’s annual salary or an all-inclusive hourly rate. Ensure this is clearly stated in the employment contract to avoid misunderstandings.
• Accurate Calculations: When applicable, calculate leave loading correctly to ensure compliance and avoid potential disputes.
• Termination Payments: Remember to include any accrued leave loading in final payments when an employee’s employment ends.

One nuance on termination. Whether loading is payable on accrued annual leave when employment ends depends on the wording of the particular award or agreement, and awards genuinely differ on this. Some say expressly that loading is not paid on termination. Others are silent, in which case the National Employment Standards position generally applies. Do not assume either way. Read the clause, and if it is ambiguous, get it checked before you process the final pay.

By understanding and adhering to the requirements surrounding annual leave loading, you can ensure compliance with Australian employment laws and maintain fair compensation practices within your business.

Understanding Minimum Wages and Awards

The National Minimum Wage sets the minimum pay rate for employees. As of 1 July 2026, it is $26.44 per hour or $1,004.90 per 38-hour week (before tax). However, most employees are covered by an industry or occupation-specific award, which stipulates minimum pay rates and conditions tailored to their role. These awards often specify different pay levels based on experience, qualifications, and duties. Minimum rates in modern awards also increased by 4.75% from the first full pay period starting on or after 1 July 2026.

Common Pitfalls Leading to Underpayment

1. Incorrect Award Application: Misidentifying the relevant award or failing to apply the correct classification can result in underpayment. It’s crucial to determine which award covers your business and employees accurately.
2. Overlooking Age-Related Pay Increases: For junior employees, pay rates often increase as they age. Neglecting to adjust wages accordingly can lead to non-compliance.
3. Failure to Update Pay Rates: Minimum wages and award rates are reviewed annually. Not implementing these changes promptly can cause inadvertent underpayment.

Consequences of Underpayment — Underpaying employees can lead to significant financial penalties and damage your business’s reputation. High-profile cases have shown that media exposure of wage underpayment can harm customer trust and brand image.

Intentional underpayment is now a crime

Since 1 January 2025, intentionally underpaying an employee’s wages or entitlements has been a criminal offence under the Fair Work Act. Not a civil penalty. A criminal offence, carrying up to 10 years’ imprisonment for an individual and very substantial fines for a company. The word doing the work in that sentence is intentionally. Honest mistakes are not caught by the criminal offence. Misreading a classification, missing an increase, getting an allowance wrong: these are still serious and you still have to fix them and back pay, but they are not crimes.

The Voluntary Small Business Wage Compliance Code

If you employ fewer than 15 people, there is a specific protection built for you. If the Fair Work Ombudsman is satisfied you have complied with the Voluntary Small Business Wage Compliance Code in relation to an underpayment, it cannot refer you for criminal prosecution. Complying with the Code broadly means you did not intend to underpay, and you can show it. The things that demonstrate that are unglamorous and completely achievable: checking which award applies, using the Fair Work Ombudsman’s pay tools, keeping proper records, asking for advice when you are unsure, fixing errors promptly when you find them, and cooperating if you are asked questions.

It is worth downloading the Code and the accompanying guide, reading them once, and keeping a note that you did. That note is part of the evidence. The Code protects you from criminal prosecution. It does not remove the debt. If you have underpaid someone, you still owe it, and civil penalties can still apply.

Best Practices for Compliance

• Identify the Correct Award and Classification: Use the Fair Work Ombudsman’s resources to determine the appropriate award and classification for each employee.
• Regularly Review Pay Rates: Stay informed about annual wage reviews and adjust employee pay rates accordingly. The Fair Work Ombudsman provides updated pay guides to assist employers.
• Implement Robust Payroll Systems: Utilise reliable payroll software or services that automatically update pay rates and ensure accurate calculations.
• Maintain Accurate Records: Keep detailed records of employee classifications, pay rates, hours worked, and any changes over time. This documentation is vital for compliance and in case of audits.
• Seek Professional Advice: If uncertain, consult with employment law professionals or the Fair Work Ombudsman to ensure adherence to legal obligations.

By applying the correct pay rates and staying informed about legislative changes, small business owners can foster a fair, compliant workplace and avoid the pitfalls of underpayment.

A Quick Word on Timing — It’s Not Always 1 July

One detail that trips up many employers: the new rates don’t necessarily kick in on 1 July itself. They apply from the first full pay period that starts on or after 1 July 2026. What does that mean in practice? If your pay week runs Monday to Sunday and 1 July 2026 falls on a Wednesday, you don’t switch to the new rates mid-week. You keep paying the old rates until the next full pay period begins — in this example, Monday 6 July 2026. From that point on, the new rates apply. The same logic works for fortnightly or monthly pay cycles. Find the first complete pay period that begins on or after 1 July, and that’s when the increase takes effect. Paying the new rates a few days early won’t get you into trouble, but applying them late — or part-way through a pay period — can leave you underpaying staff and exposed to a back-pay claim.

If you’re ever unsure where your pay cycle lands, it’s worth mapping out your pay period start dates for the year so the changeover date is clear well before 1 July rolls around.

Not 100% sure you’re paying your team correctly?

Award interpretation trips up even the most diligent employers — wrong classification, missed increases, the wrong rate by a few dollars an hour that quietly adds up to thousands. Our Wage & Award Sprint ($695) gets you certainty: the right award, the right classification, the right rates, so you can stop worrying about an underpayment claim landing on your desk. Get the Wage & Award Sprint — or book a free chat to talk through your award.

The National Employment Standards (NES) for Small Business Owners

The National Employment Standards (NES) are the minimum employment entitlements that must be provided to every employee covered by the national workplace relations system. No award, agreement or contract can give less than the NES.

Key NES Entitlements

1. Maximum weekly hours: 38 hours for full-time employees, plus reasonable additional hours.
2. Requests for flexible working arrangements, for eligible employees.
3. Casual conversion: the employee choice pathway for eligible casuals to move to permanent employment.
4. Parental leave and related entitlements: up to 12 months unpaid, with the right to request a further 12 months.
5. Annual leave: 4 weeks per year, pro rata for part-time employees, and 5 weeks for many shiftworkers.
6. Personal/carer’s leave, compassionate leave and paid family and domestic violence leave: 10 days paid personal leave, 2 days compassionate leave per occasion, and 10 days paid family and domestic violence leave available in full from the start of each 12 month period.
7. Community service leave, including jury duty and voluntary emergency management activities.
8. Long service leave, with entitlements set by state and territory legislation.
9. Public holidays, with a right to be absent unless a request to work is reasonable.
10. Notice of termination and redundancy pay.
11. The Fair Work Information Statement, and the Casual Employment Information Statement for casual employees.
12. Superannuation contributions.
13. The right to disconnect: the right to reasonably refuse contact outside working hours. This reached small business employers on 26 August 2025.

The last two on that list are the newest, and they are the ones most likely to be missing from an older employment contract or handbook. If your documents have not been reviewed since 2024, they almost certainly do not mention either.

Why the NES Matters for Your Business

• Compliance: Adhering to the NES avoids penalties and legal disputes.
• Employee Trust: Ensures fairness and transparency in employment practices.
• Business Reputation: Demonstrates your commitment to workplace fairness.

Tip: Always review the NES alongside applicable awards or agreements, as these may include additional obligations tailored to your industry.

💡 These standards ensure fairness and compliance—protect your business by getting them right. Need help navigating NES obligations? Let’s chat! Book a FREE 30-minute consult with our expert – book here –https://calendly.com/freshhrinsights/30min

Onboarding is the process of integrating new employees into an organisation, encompassing orientation, training, and acclimatisation to the company culture.

Importance of Onboarding

Effective onboarding is crucial for several reasons:

• Employee Engagement: A structured onboarding process enhances employee engagement, leading to increased job satisfaction and productivity.
• Retention Rates: Proper onboarding can significantly improve employee retention, reducing turnover costs and maintaining organisational stability.
• Cultural Integration: It helps new hires understand company values and expectations, fostering a cohesive work environment.

The day-one compliance layer

Culture and connection matter enormously, and everything above is right. But there is a compliance layer underneath onboarding that is quick to do and awkward to fix later.

• A signed written contract, ideally before the first day rather than three weeks in.
• The Fair Work Information Statement, given to every new employee.
• The Casual Employment Information Statement as well, if they are casual.
• The Fixed Term Contract Information Statement, if the role is on a fixed term.
• A TFN declaration and superannuation standard choice form. If they do not choose a fund, you need to request their stapled fund from the ATO before defaulting them anywhere.
• Emergency contact details, and any licences or tickets the role requires, sighted and copied.
• A safety induction, including how to report a hazard or an incident.
• Your policies, issued and acknowledged, so you can show later that the person actually received them.

Under Payday Super, accurate fund details on day one matter more than they used to. A rejected contribution because of a wrong member number can push you past the seven business day deadline, and the deadline does not move because the data was wrong.

Streamlining Onboarding for Small Businesses

Small businesses often face challenges in implementing comprehensive onboarding due to limited resources. To streamline the process and minimise paperwork:

1. Digital Solutions: Utilise onboarding software to automate documentation and training modules, reducing manual tasks.
2. Pre-Employment Preparation: Provide new hires with access to necessary forms and company information before their start date to expedite the process.
3. Structured Plans: Develop a clear, step-by-step onboarding plan that outlines responsibilities and timelines, ensuring consistency and efficiency.
4. Mentorship Programs: Assign a mentor or buddy to guide new employees, offering personalised support without extensive formal procedures.

By adopting these strategies, small businesses can create an effective onboarding that benefits both the organisation and its employees.

Probation periods are a vital component of the employment process, offering both employers and employees a structured timeframe to assess suitability for a role. For small business owners, understanding the nuances of probation periods and their alignment with minimum employment periods is essential for effective workforce management.

Understanding Probation Periods

A probation period is an initial phase of employment during which an employer evaluates a new hire’s performance, capabilities, and cultural fit within the organisation. This period allows employers to determine if the employee meets the job requirements and integrates well with the team. Typically, probation periods range from three to six months, depending on the employer’s discretion and the role’s nature.

Employee Entitlements During Probation

Employees on probation are entitled to the same rights and benefits as permanent employees. This includes accruing and accessing paid leave, such as annual and sick leave. If employment ends during or at the end of the probation period, employees are entitled to notice and payment of any unused accrued annual leave.

Minimum Employment Periods and Unfair Dismissal

The Fair Work Act 2009 defines a ‘minimum employment period’ (MEP), which is distinct from the probation period:

• Small Businesses: For employers with fewer than 15 employees, the MEP is 12 months.
• Larger Businesses: The MEP is six months for employers with 15 or more employees.

During the MEP, employees are generally not eligible to make an unfair dismissal claim if their employment is terminated. However, other claims, such as discrimination or general protections, may still apply regardless of employment length.

Aligning Probation with Minimum Employment Periods

For small business owners, it’s advisable to set the probation period to align with the MEP. This alignment ensures decisions about continuing or terminating employment are made within a timeframe that minimises exposure to unfair dismissal claims. For instance, a small business might consider a probation period of up to 12 months, corresponding with the MEP for unfair dismissal eligibility.

Two things that catch people out

First, service as a regular and systematic casual, where the person reasonably expected the work to continue, counts towards the minimum employment period. So a casual who has been with you for ten months and then goes permanent does not start the clock again. They may be protected from unfair dismissal considerably sooner than you expect.

Second, calling something a probation period does not change anyone’s legal position. Probation is a management concept, not a statutory one. During probation, an employee accrues leave, is entitled to notice, and is fully covered by general protections and discrimination law. A dismissal in month two for a prohibited reason is just as unlawful as one in year five.

What probation genuinely gives you is a structured window to assess fit and to have honest conversations early. Use it for that. Meet at 30, 60 and 90 days, put the feedback in writing, and make the decision before the period expires rather than letting it quietly lapse.

Best Practices for Managing Probation Periods

1. Clear Communication: Clearly outline the probation period’s duration and expectations in the employment contract.
2. Regular Performance Reviews: Conduct regular evaluations to provide timely feedback and address concerns.
3. Documentation: Maintain detailed records of performance discussions and any training or support provided.
4. Fair Assessment: Ensure assessments during the probation period are objective, fair, and free from discrimination.

By effectively managing probation periods and understanding their relationship with minimum employment periods, small business owners can make informed decisions that support both the organization’s growth and employee development

Quiet Quitting refers to employees performing only the minimum required tasks without enthusiasm or commitment, often due to disengagement or dissatisfaction. This trend can significantly impact small businesses, leading to reduced productivity and morale.

Identifying Quiet Quitting

Signs of quiet quitting include:

• Reduced work output
• Lack of participation in team activities
• Unwillingness to take on additional responsibilities
• Decline in initiative and motivation

Strategies to Prevent Quiet Quitting

1. Enhance Employee Engagement: Foster a supportive and engaging workplace to prevent the silent impact of quiet quitting on your business.
2. Promote Work-Life Balance: Addressing a lack of work-life balance is crucial, as it is a significant factor contributing to quiet quitting.
3. Recognise and Reward Efforts: Acknowledge employee contributions to boost morale and motivation.
4. Provide Growth Opportunities: Offer training and career development to keep employees engaged and invested in their roles.
5. Maintain Open Communication: Encourage regular feedback and discussions to address concerns promptly.

By implementing these strategies, small business owners can create a positive work environment that discourages quiet quitting and promotes active engagement.

A fair word of caution

Before labelling someone as quietly quitting, it is worth checking what you are actually seeing. Since 26 August 2025, employees of small business employers have the right to disconnect. They can reasonably refuse to monitor, read or respond to contact outside their working hours. So an employee who no longer answers messages at 9pm is not necessarily disengaged. They may simply be exercising an entitlement they have always had on paper and now have in law.

And someone doing their job properly within their hours, without volunteering for extra, is not underperforming. They are doing their job. The real question is whether the work is getting done to the standard you agreed, not whether someone is going above and beyond. Where there is genuine disengagement, it is usually telling you something about workload, recognition or direction. Worth asking before assuming.

Understanding Your Superannuation Obligations: A Guide for Small Business Owners

Superannuation is a cornerstone of Australia’s retirement system, and as a small business owner it is one of your most closely watched obligations. Since 1 July 2026 the way you pay super has changed significantly under the Payday Super rules, and quarterly payment is no longer an option.

Payday Super from 1 July 2026

Payday Super: how it works now. The Superannuation Guarantee rate is 12%, and that has not changed. What changed on 1 July 2026 is how often and how quickly you have to pay it. The quarterly system, with its 28 October, 28 January, 28 April and 28 July deadlines, ended. You now pay super at the same time as wages, every payday.

• The 7 business day rule. Each time you pay wages, the super contribution must be received by the employee’s super fund within 7 business days. Received, not sent. If you use a clearing house or payroll software, you need to allow processing time so it still lands inside the window.
• New employees get longer. For an employee’s first contribution, or the first payment into a new fund, you have 20 business days.
• Qualifying Earnings replaced Ordinary Time Earnings. In practice QE largely mirrors OTE, but check your payroll is capturing it correctly.
• Reporting runs through Single Touch Payroll each pay cycle, which gives the ATO close to real time visibility.
• Super funds now receive contributions through the New Payments Platform, and they have 3 business days to return a contribution they cannot allocate, down from 20. A rejected contribution does not extend your deadline, so accurate member details matter.

The ATO has taken a risk based, facilitative approach for the first year, and has published Practical Compliance Guideline PCG 2026/1 setting out what it treats as high, medium and low risk. Genuine errors, promptly corrected, are treated very differently from deliberate or repeated non-compliance. That is useful breathing room, not a reason to let things drift. The ATO’s Small Business Superannuation Clearing House has closed. It stopped accepting new users on 1 October 2025 and access ended on 30 June 2026. If you have not already moved to another SuperStream compliant solution, whether that is your payroll software or your default fund’s clearing house, that needs sorting now rather than at the next pay run.

Key Responsibilities:

1. Eligibility: Generally, all employees aged 18 and over are eligible for super contributions, regardless of how much they earn. There are additional eligibility rules for workers under 18, domestic or private workers, independent contractors, international workers, and the self-employed. Note that contractors engaged mainly for their labour are captured for SG purposes and are included under Payday Super.
2. Payment Timing: Quarterly until 30 June 2026; payday (within 7 business days) from 1 July 2026, as set out above.
3. Payment Method: Super contributions must be made electronically through a SuperStream-compliant system, which ensures payments and associated data are transmitted in a standardised format. Important: the ATO’s Small Business Superannuation Clearing House (SBSCH) is closing — it stopped accepting new users on 1 October 2025, and existing users only have access until 30 June 2026. If you’ve been relying on the SBSCH, you’ll need an alternative SuperStream solution (such as enabled payroll software or your default fund’s clearing house) in place before Payday Super begins.
4. The maximum contribution base, which caps the earnings that attract super, is $270,830 for the 2026-27 year. With an annual cap rather than a quarterly one, super for high earners is now front-loaded earlier in the financial year, which is worth factoring into cash flow.

Penalties for Non-Compliance

Failing to meet your super obligations carries real consequences, and the penalty framework is being modernised alongside Payday Super:

• Superannuation Guarantee Charge (SGC): If super isn’t received in full and on time, you become liable for the SGC. Under the new framework, the SGC is assessed by the ATO (you no longer lodge an SG statement yourself) and includes the super shortfall, an interest/earnings component, and an administrative uplift to reflect enforcement costs. The SGC is not tax-deductible.
• Additional Penalties: Further penalties can apply — up to 200% of the SGC in serious cases, with late-payment penalties of 25% (or 50% for repeat non-compliance) of the unpaid amount. Lodging a voluntary disclosure promptly can reduce the administrative uplift component.
• Director Penalties: Company directors can be held personally liable for unpaid super liabilities, underscoring the importance of compliance at every level of the business.
• Now part of the National Employment Standards: Superannuation is also enforceable under the NES, meaning the Fair Work Ombudsman has a role alongside the ATO.

Best Practices for Compliance

• Stay Informed: Regularly review the ATO’s guidelines and updates so you’re across any changes to super laws and rates.
• Maintain Accurate Records: Keep detailed records of all super payments, employee details and correspondence. Accurate, complete employee fund details are especially important under Payday Super, because rejected contributions can cause you to miss the deadline. Keep records for a minimum of five years.
• Use Reliable Systems: Implement SuperStream-compliant payroll systems that integrate super with your pay run to reduce errors and late payments.
• Seek Professional Advice: Consult a tax professional or accountant to ensure your business meets all super obligations and to get guidance tailored to your circumstances.

By managing your superannuation responsibilities diligently you’ll meet your legal obligations and contribute positively to your employees’ financial futures, fostering a more committed and satisfied workforce.

Employee training and development are crucial for small businesses aiming to enhance productivity, retain talent, and adapt to market changes. Investing in your team’s growth leads to improved performance, innovation, and employee satisfaction.

Benefits for Small Businesses:

• Enhanced Performance: Training equips employees with the necessary skills to perform their tasks efficiently, leading to increased productivity and quality of work.
• Employee Retention: Offering development opportunities shows employees that you value their growth, which can lead to higher job satisfaction and reduced turnover.
• Adaptability: Continuous training helps your team stay updated with industry trends and technologies, enabling your business to remain competitive.
• Innovation: A well-trained workforce is more likely to contribute innovative ideas and solutions, driving business growth.

Implementing Training Programs:

1. Assess Needs: Identify the skills and knowledge gaps within your team to tailor training programs effectively.
2. Set Clear Objectives: Define what you aim to achieve with the training to ensure it aligns with your business goals.
3. Choose Appropriate Methods: Select training methods that suit your team’s learning styles, such as workshops, online courses, or mentoring.
4. Evaluate Effectiveness: Regularly assess the impact of training programs and make necessary adjustments to improve outcomes.

Investing in employee training and development not only enhances your team’s capabilities but also contributes to the overall success and sustainability of your small business.

One practical point. If you require an employee to attend training, that time is generally paid time, and under many awards it also attracts the relevant penalty or overtime rate if it falls outside ordinary hours. Online modules completed at home count too. It is an easy thing to overlook when training is scheduled on a Saturday morning or expected to be done after hours.

 Unpaid work can take various forms, including vocational placements, unpaid internships, work experience, and volunteer work. While these arrangements can provide valuable experience, it’s crucial for small business owners to understand when unpaid work is lawful to ensure compliance with the Fair Work Act.

Types of Unpaid Work:

1. Vocational Placements: These are formal work experience arrangements that are part of an education or training course. Vocational placements are typically unpaid and are lawful when they meet specific criteria outlined by the Fair Work Act.
2. Unpaid Internships and Work Experience: These involve individuals working to gain experience in a particular industry. Such arrangements can be lawful if they are part of a genuine learning experience and do not involve the individual performing productive work that would otherwise be done by a paid employee.
3. Volunteering: This involves individuals willingly giving their time for community service or non-profit organizations without expectation of payment. Volunteering is lawful when the person is under no obligation to attend the workplace or perform work, and there is no expectation of remuneration.

 Key Considerations for Small Business Owners:

• Employment Relationship: If an unpaid worker is performing tasks that would typically be done by a paid employee, an employment relationship may be deemed to exist, entitling the worker to minimum wages and entitlements.
• Genuine Learning Experience: Unpaid work should primarily benefit the individual by providing a meaningful learning experience, rather than benefiting the business through productive work.
• Duration and Nature of Work: Short-term observational placements are more likely to be considered lawful unpaid work. Extended periods involving productive work may indicate an employment relationship.

• Unpaid trial shifts: This is the version of unpaid work that turns up most often in hospitality, retail and the trades, and it is the one most likely to cost you. An unpaid work trial is only lawful if it is genuinely for the purpose of demonstrating the skills needed for the job, it lasts no longer than is reasonably necessary for that purpose, and the person is directly supervised the whole time. For most roles that means somewhere between a few minutes and a couple of hours. A full unpaid shift is not a trial. Neither is a trial where the person works unsupervised, serves customers, or is used to cover a gap on the roster. At that point they are doing productive work and they must be paid for it, at the correct award rate, with super and a payslip. If you need to see someone work for longer than a short supervised demonstration, put them on as a casual for that shift and pay them. It is a small cost and it removes the problem entirely.

 Risks of Non-Compliance:

Engaging individuals in unpaid work outside the lawful exceptions can lead to significant legal and financial consequences, including:

• Back Payment of Wages: Businesses may be required to pay back wages for the period the individual worked.
• Penalties: Non-compliance with the Fair Work Act can result in fines and penalties.
• Reputational Damage: Unlawful unpaid work practices can harm your business’s reputation and employee relations.

 Best Practices:

• Assess the Nature of the Work: Before engaging someone in an unpaid capacity, evaluate whether the arrangement meets the criteria for lawful unpaid work.
• Consult Legal Resources: Refer to the Fair Work Ombudsman’s guidelines on unpaid work to ensure compliance.
• Maintain Documentation: Keep detailed records of the arrangement, including the purpose, duration, and nature of the work performed.

By understanding and adhering to the legal requirements surrounding unpaid work, small business owners can provide valuable learning opportunities while ensuring compliance with employment laws.

 Engaging volunteers can be a valuable asset for small businesses, especially within community, charitable, emergency, or sporting organizations. However, it’s essential to understand the legal distinctions between volunteers and employees to ensure compliance with the Fair Work Act.

 Defining a Volunteer:

A volunteer is an individual who:

• Offers their time and effort willingly without any expectation of payment.
• Is under no obligation to attend the workplace or perform work.
• Performs tasks without coercion, benefiting the community or organization.

 Key Considerations for Small Business Owners:

1. Nature of the Work: Ensure that the tasks assigned to volunteers are genuinely voluntary and do not replace roles that would otherwise be performed by paid employees.
2. Obligations and Expectations: Volunteers should have the freedom to choose whether to attend work and should not be rostered in a manner that mimics employment schedules.
3. Benefits and Compensation: While reimbursing out-of-pocket expenses is acceptable, providing regular payments or incentives can blur the line between a volunteer and an employee.

Risks of Misclassification:

Misclassifying an employee as a volunteer can lead to:

• Legal Penalties: Non-compliance with employment laws may result in fines and legal action.
• Back Payment of Wages: If deemed an employee, the individual may be entitled to back pay for the duration of their service.
• Reputational Damage: Misclassification can harm your business’s reputation and employee relations.

Safety duties still apply

One thing that surprises people: under the Work Health and Safety Act 2011, a volunteer is a worker. Your duty to provide a safe workplace, safe systems of work, adequate facilities, and proper information, training, instruction and supervision applies to volunteers in exactly the same way it applies to employees. So a volunteer gets an induction. A volunteer gets the safety briefing. A volunteer is consulted about the risks that affect them. And it is worth checking with your insurer that your policies extend to volunteers, because many standard policies do not without being asked.

 Best Practices:

• Clear Agreements: Establish written agreements outlining the voluntary nature of the work, expectations, and the absence of remuneration.
• Training and Support: Provide necessary training to volunteers to ensure they can perform their roles safely and effectively.
• Regular Reviews: Periodically assess volunteer roles to ensure they remain compliant with legal standards and do not evolve into employment relationships.

By adhering to these guidelines, small business owners can effectively engage volunteers while maintaining compliance with the Fair Work Act.

Workplace health and safety (WHS) is a critical aspect of running a small business, ensuring the well-being of employees, customers, and visitors. In Queensland, the Work Health and Safety Act 2011 outlines the legal obligations for business owners to maintain a safe working environment.

 Legal Obligations Under the Work Health and Safety Act 2011

As a small business owner, you are legally required to:

• Provide a Safe Work Environment: Ensure that the workplace is free from hazards that could cause harm.
• Maintain Safe Systems of Work: Implement procedures that promote safety in daily operations.
• Ensure Safe Use of Equipment and Substances: Guarantee that all tools, machinery, and chemicals are used safely and appropriately.
• Provide Adequate Facilities: Offer necessary amenities such as clean restrooms, drinking water, and first aid.
• Provide Information, Training, Instruction, and Supervision: Equip workers with the knowledge and skills to perform their tasks safely.

Psychosocial hazards are now part of your safety duty

Safety used to be thought of as hard hats, machine guards and trip hazards. It is broader than that now, and Queensland has moved further than most. Since 1 September 2024, Part 3.2 of the Work Health and Safety Regulation 2011 (Qld) requires you to proactively identify and manage psychosocial risks. Those include bullying, harassment, poor support, unreasonable workloads, low job control, exposure to traumatic events and aggression from customers. The Managing the risk of psychosocial hazards at work Code of Practice 2022 sets out how. In plain terms: the way you run performance management, set workloads and handle conflict is now a safety matter, not only an HR one.

The sexual harassment prevention plan

Since 1 March 2025, s55H of the Work Health and Safety Regulation 2011 (Qld) requires you to prepare and implement a written prevention plan wherever you identify a risk to health and safety from sexual harassment or sex or gender-based harassment. The plan must state each identified risk, set out the control measures, be prepared in consultation with your workers, and be written so your workers can readily access and understand it. Queensland is the only state to put this in work health and safety law. Most workplaces carry some level of risk, so for most Queensland businesses a plan is required rather than optional.

Officers have their own duty

If you are a company director, or someone who makes decisions affecting a substantial part of the business, s27 places a due diligence duty on you personally. You are expected to keep up to date on safety matters, understand the hazards in your operation, make sure the business has appropriate resources and processes, and verify that they are actually being used. This duty is personal. It does not transfer to a manager, and it sits alongside Queensland’s industrial manslaughter offence. Officers can be prosecuted in their own right.

 Benefits of Implementing WHS Practices

Adhering to WHS regulations not only fulfils legal requirements but also offers several advantages:

• Employee Retention: A safe workplace enhances job satisfaction, reducing staff turnover.
• Increased Productivity: Healthy employees are more efficient and contribute positively to business operations.
• Cost Reduction: Minimising workplace injuries lowers expenses related to workers’ compensation and medical leave.
• Legal Compliance: Avoiding legal penalties and fines associated with non-compliance.

Steps to Enhance Workplace Safety

1. Identify Hazards: Regularly inspect the workplace to detect potential risks.
2. Assess Risks: Evaluate the likelihood and severity of identified hazards.
3. Implement Control Measures: Take steps to eliminate or minimise risks, such as providing protective equipment or modifying work processes.
4. Consult with Employees: Engage workers in discussions about safety concerns and solutions.
5. Review and Revise: Continuously monitor and update safety practices to ensure their effectiveness.

By prioritising workplace health and safety, small business owners can create a secure environment that promotes the well-being of all stakeholders and contributes to the overall success of the business.

Addressing Xenophobia in the Workplace: A Guide for Small Business Owners

Xenophobia—fear, hatred, or prejudice against people from different countries or cultures—can have no place in a productive and inclusive workplace. For small business owners, fostering a diverse and welcoming environment is not just ethically right but also crucial for success.

Why Is It Important to Tackle Xenophobia?

• Enhances Team Collaboration: A respectful and inclusive environment encourages better teamwork and communication among employees.
• Improves Retention: Employees who feel valued and respected are more likely to stay with your business.
• Boosts Innovation: Diverse teams bring different perspectives, fostering creativity and problem-solving.
• Protects Your Reputation: A positive workplace culture enhances your brand’s image, attracting talent and customers.

How Xenophobia Manifests in the Workplace

• Exclusion or isolation of employees based on cultural or ethnic differences.
• Discriminatory jokes, remarks, or microaggressions.
• Unequal treatment in assignments, promotions, or opportunities.
• Hostility toward employees perceived as “outsiders.”

Where this sits legally

Beyond being wrong, xenophobic conduct engages several sets of obligations at once, and it is useful to know which:

• The Racial Discrimination Act 1975 and the Anti-Discrimination Act 1991 (Qld) prohibit discrimination on the basis of race, colour, descent, national or ethnic origin, and in Queensland also religious belief and religious activity.
• Section 351 of the Fair Work Act makes it unlawful to take adverse action against an employee because of race, colour, national extraction or social origin.
• Under work health and safety law, racial harassment is a psychosocial hazard you are required to manage proactively.
• You can be vicariously liable for what your workers do, unless you took all reasonable steps to prevent it.

The practical message is the same one that runs through this whole page: the policy, the training and the willingness to address something the first time you hear it are not just decency. They are the reasonable steps that protect your people and your business.

Steps to Prevent Xenophobia in the Workplace

1. Lead by Example:
   • Model respectful and inclusive behaviour as a leader.
   • Address any inappropriate comments or actions immediately.
2. Establish Clear Policies:
   • Implement a zero-tolerance policy for discrimination and harassment.
   • Ensure employees understand their rights and responsibilities through training and communication.
3. Promote Cultural Awareness:
   • Host workshops or team-building activities that celebrate diversity.
   • Encourage employees to share aspects of their cultures in a safe and open environment.
4. Provide Training:
   • Conduct diversity, equity, and inclusion (DEI) training to educate employees on the importance of respect and understanding.
   • Equip managers with tools to identify and address bias or conflict.
5. Create a Safe Reporting Mechanism:
   • Ensure employees feel safe reporting incidents of xenophobia without fear of retaliation.
   • Address complaints promptly and fairly.
6. Engage with the Community:
   • Partner with local multicultural organisations to promote inclusion.
   • Participate in events or initiatives that highlight diversity and mutual respect.

Building a Better Workplace

By fostering a culture of inclusion, small business owners can prevent xenophobia from taking root. This not only supports employee well-being but also strengthens your business through diverse perspectives and a positive reputation.

Employing Young Workers: A Guide for Small Business Owners

Young workers bring enthusiasm, fresh perspectives, and energy to a workplace. For small business owners, employing younger workers can be rewarding, but it requires understanding legal obligations and adopting best practices to create a supportive and compliant environment.

Key Considerations for Employing Young Workers

1. Legal Requirements:
   • Minimum Age Restrictions: Some states have age-based restrictions on when young workers can start working and the types of tasks they can perform. Check your state’s regulations.
   • Junior Pay Rates: Employees under 21 often have junior pay rates determined by their age. Use tools like the Fair Work Pay Calculator to ensure compliance.
   • Fair Treatment: Anti-discrimination laws prohibit unfavourable treatment based on age, among other protected attributes.
2. Rights and Responsibilities:
   • Provide young workers with a Fair Work Information Statement and, if applicable, a Casual Employment Information Statement upon starting employment.
   • Clearly explain job expectations, working hours, meal breaks, pay structure, and leave entitlements.
3. Health and Safety:
   • Ensure young workers understand workplace safety protocols.
   • Provide thorough safety training, including hazard identification and reporting procedures.
   • Assign mentors or buddies to guide them in their roles and monitor adherence to safety measures.
4. Training and Development:
   • Use tailored training methods like demonstrations, mentoring, or online resources to help young workers learn effectively.
   • Foster a culture of continuous learning to build their skills and confidence.
5. Preventing Bullying and Discrimination:
   • Create a respectful workplace by implementing and communicating a zero-tolerance policy for bullying, harassment, and discrimination.
   • Encourage open communication and provide a safe mechanism for raising concerns.
6. Support for Outside Commitments:
   • Recognise that younger workers may balance school, exams, or training. Accommodating their schedules demonstrates flexibility and promotes loyalty.

The birthday problem

This deserves its own heading because it is one of the most common quiet underpayments in small business, and it is almost never deliberate. Junior rates step up on the employee’s birthday. Not at the next pay review, not on 1 July, not when someone remembers. On the day. A 17 year old who turns 18 in November moves to the 18 year old rate from that pay period, and if you miss it you are underpaying from that date forward, quietly, until someone notices. Put every junior’s birthday in a calendar with a reminder two weeks out. It takes five minutes and it removes the risk entirely.

Queensland child employment rules

If you employ anyone under 18 in Queensland, the Child Employment Act 2006 (Qld) adds its own layer on top of the award. Children under 16 generally need written parental consent, there are restrictions on the hours and times they can work, particularly during school terms and at night, and some work is prohibited outright. Check the current rules before rostering, because they are stricter than most employers expect.

Supervision is a safety duty, not a courtesy

Young workers are more likely to be injured at work, largely because they are less likely to recognise a hazard and far less likely to speak up about one. Your duty to provide information, training, instruction and supervision is the same for everyone, but the level of supervision that discharges it is higher for someone who has never done this before. Pair them with someone experienced, and tell them plainly that stopping to ask a question is always the right call.

Benefits of Employing Young Workers

• Improved Recruitment and Retention: Engaged young workers are more likely to remain with your business.
• Fresh Ideas and Perspectives: Younger employees can bring innovative ideas and adapt quickly to new technologies.
• Building a Skilled Workforce: Investing in training and mentoring develops long-term skills that benefit your business.

By understanding and supporting the unique needs of young workers, small business owners can create an inclusive and productive environment that benefits both employees and the organisation.

Zero-Tolerance Policies in the Workplace: A Guide for Small Business Owners

A Zero-Tolerance Policy is a clear and non-negotiable stance against specific harmful behaviours, such as harassment, bullying, violence, or discrimination. For small business owners, implementing such a policy promotes a safe, respectful, and productive workplace.

Why a Zero-Tolerance Policy is Essential

1. Workplace Safety: Protects employees from harmful behaviours, ensuring their physical and psychological well-being.
2. Compliance: Helps businesses align with legal obligations, such as anti-discrimination and workplace health and safety laws.
3. Culture of Respect: Sends a clear message that harmful actions are unacceptable, fostering an inclusive environment.
4. Risk Mitigation: Reduces potential legal disputes and reputational damage.

Key Elements of a Zero-Tolerance Policy

1. Clear Definitions:
   • Outline prohibited behaviours, such as harassment, bullying, violence, or discrimination.
   • Provide examples of unacceptable actions.
2. Reporting Procedures:
   • Establish a confidential and accessible way for employees to report incidents.
   • Include options for informal, formal, and anonymous reporting.
3. Investigation and Consequences:
   • Define how complaints will be investigated impartially and promptly.
   • Clearly state the consequences of policy violations, including disciplinary actions.
4. Employee Training:
   • Provide training to ensure employees understand the policy, their rights, and responsibilities.
   • Include practical scenarios to help employees recognise and prevent harmful behaviours.
5. Support Mechanisms:
   • Offer resources, such as counselling or Employee Assistance Programs (EAP).
   • Ensure support for victims and witnesses.
6. Regular Review:
   • Evaluate the policy’s effectiveness and update it regularly to reflect best practices and legal changes.

A word of caution about the phrase itself

I want to be honest about something, because it comes up more often than you would think. Zero tolerance describes your standard. It does not describe your process. A policy cannot remove the need for a valid reason and procedural fairness, and the Fair Work Commission has made that point in plenty of decisions where an employer dismissed someone on the spot and pointed to the policy as justification. If your policy says zero tolerance and you then dismiss without investigating, without putting the allegations to the person, and without genuinely considering their response, the policy does not help you. It can actually hurt, because it looks like the outcome was decided before you asked the questions.

So keep the standard, and keep the process too. Investigate. Put the allegations in writing. Let the person respond, with a support person if they want one. Consider what they say with a genuinely open mind. Then decide. A zero tolerance policy tells your team what will not be accepted here. A fair process is what makes it enforceable.

Sample Zero-Tolerance Policy

[Company Name] Zero-Tolerance Policy

At [Company Name], we are committed to maintaining a workplace free from harassment, bullying, violence, and discrimination. This Zero-Tolerance Policy ensures a safe and respectful environment for all employees.

Prohibited Behaviors

• Physical violence or threats
• Harassment, including sexual harassment
• Discrimination based on protected attributes
• Bullying or intimidation

Reporting – Employees can report concerns to their direct supervisor, HR department, or anonymously via [Reporting Mechanism].

Investigation – All reports will be handled promptly and confidentially. Violations of this policy will result in disciplinary actions, up to and including termination.

Training – All employees must attend annual training sessions to understand this policy and their role in fostering a positive workplace.

For questions or concerns, contact [HR Contact Information].

Importance of Training – Training is vital to ensure the success of a Zero-Tolerance Policy. It helps employees:

• Recognise unacceptable behaviours.
• Understand how to report incidents.
• Learn strategies to de-escalate potential conflicts.
• Feel confident that the policy will be enforced fairly.

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