The Australian “employment system” is highly regulated and, by nature, very bureaucratic. 

For an SME Owner to (for the first time) decide to employ an employee there are 15 key steps/ issues  the Employer has to consider in reasonable detail to get the overall process right. These are: 

1.   What type of employee do I need? (Casual, Part Time, Fixed Term, Full Time) 

2.    Is there a benefit of using a Contractor instead or an Intern? What are the Fair Work legal rules regarding key differences between “Contractor” and “Employee” and “unpaid work”? 

3.    Assuming the employee option is chosen, what detail do I need to have in an appropriate Job Description? 

4.    How do I connect up the relevant role/ Job Description to an applicable Fair Work Award and then an appropriate classification in that legal Award? 

5.    Assuming I have picked the right Fair Work Award and Classification and employee is “happy” with the rate of pay am I able to interpret all relevant Award conditions pertinent to Allowances, Consultation, interpretation of overtime etc.? 

6.    What do I need to have in a Contract of Employment that is inclusive of the “right” Award but also covers relevant policies, not in Awards (i.e. Privacy, Confidentiality, Use Of Technology/ Social Media in the Workplace, Code of Conduct, Occupational Health & Safety etc.)? Who can do this for me? 

7.    What Do I need to put in a standard Letter of Offer of Employment? 

8.    I need to supply a copy of the Fair Work Information Statement to an employee as a legal requirement- this can be accessed online & is two pages.

9.    If the Employee is to be a regular hours “Casual “there is a FW requirement to provide a Conversion letter after usually 12 months of continuous service. 

10. I need to have a Queensland Work Cover policy – this can be accessed online but costs significant money that may be paid over an instalment plan. 

I need to be sure the right Work Cover classification is accessed as costs can vary significantly. 

11. Can I, or should I do a Police Check on applicants? This can be done online but costs $45 approx. per person. Other pre-employment “cards” could be applicable such as Blue Card (Children related).

12. I need to supply the chosen employee with a Superannuation Choice Form – can be done online. In the event, that a “casual “earns more than $450 in a month, I need to budget for a 9.5% Superannuation payment.

13. I also need to download a Tax File Declaration form for the chosen employee so I meet my tax obligations. 

14. How do I arrange to have the “right “software to incorporate the Payroll function (i.e. Quick books, Xero, etc.) Which software “harmonises” with the rest of my SME business? 

15. When I get the employee “on board” is there an ideal Induction Check List for me to follow? 

I have recently been talking to different clients about the above 15 steps and for them, it has been a “maze” partly because the activity cuts across not only legal but human resourcesand accounting/ software expertise. 

I have also what I regard as a 12 step process for Recruitment that is comprehensive but rarely followed except perhaps by large organisations with specialised HR resources under the Standard Employment system. 

For an SME Owner/ Manager  the idea of going to a “one stop shop” for the above is ideal but currently not necessarily out in the Market. Updated 12/2019 ©