If You Are an Employer
Employment Risks Employers Should Be Aware Of
For employers, employment law problems usually do not begin only after an employee lodges a complaint. Many risks arise from unclear contracts at the outset, misclassification of employee status, non-compliant payroll systems, outdated internal policies, or undocumented performance management and dismissal procedures.
Businesses commonly need to deal with:
- drafting and updating employment contracts;
- employee handbooks and workplace policies;
- compliance with wages, overtime, superannuation and modern awards;
- probation, performance management and disciplinary action;
- workplace complaints, and investigations into bullying, harassment and discrimination;
- redundancy, role restructuring and termination of employment;
- separation agreements, confidentiality and restraint of trade;
Fair Work applications, employee claims and external complaints.
For small and medium-sized businesses, many employment law risks arise not from deliberate breaches of the law, but because contracts, wages and management processes have not kept pace with the growth of the business. An increase in staff numbers, changes in role allocation, operating across states, and the use of casual workers or contractors can all turn what was once a simple employment arrangement into a complex one.
How Employers Can Reduce the Risk of Disputes
When employers manage workplace relations, the focus is not only on “whether someone can be dismissed” or “whether a particular cost can be reduced”, but on whether the entire process has a documentary basis, whether the procedure is reasonable, and whether communication is clear.
Businesses should generally review, on a regular basis:
- whether employment contracts are consistent with role and remuneration arrangements;
- whether wage payments comply with minimum wage, modern award and superannuation requirements;
- whether employees are full-time, part-time, casual or contractors;
- whether performance management is clearly documented;
- whether the necessary procedures have been completed before a dismissal or redundancy;
- whether internal complaints are handled promptly, fairly and in writing;
whether confidentiality, intellectual property and post-employment restraint clauses are reasonable.
Contracts, Policies and Employee Handbooks
Employment risks in a business usually do not surface only after a dispute has arisen. Many problems stem from unclear contracts at the outset, outdated policies, vague position descriptions, undocumented performance management, or the absence of a process for handling complaints.
Employers commonly need to review, on a regular basis:
- employment contracts;
- position descriptions;
- employee handbooks;
- anti-discrimination, anti-harassment and anti-bullying policies;
- leave and working hours policies;
- IT, social media and confidentiality policies;
- performance management and disciplinary procedures;
- redundancy and termination procedures.
Clear documentation and stable management processes can help a business reduce misunderstandings and lower the risk of disputes, and can also provide a stronger basis when an employee complaint or an external application needs to be addressed.
Workplace Investigations
When a business receives a complaint of bullying, harassment, discrimination, serious misconduct or conflict of interest, whether an investigation is conducted, who conducts it, how the people involved are notified, and how evidence and privacy are protected will all affect the outcome of the matter.
The investigation process needs to remain objective and fair, with complete records. Handling a matter too lightly may fail to protect employee safety; handling it too heavily, or following an improper procedure, may give rise to new disputes.
NS Legal can assist employers to establish investigation processes, review evidence, manage responses to complaints, and provide legal advice on subsequent disciplinary action or remediation plans.
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