Creating Compliant Employment Offers

Your business is growing, and it's time to hire new staff to support you. There are a few options to manage increased workloads, and the decisions you make should depend on your business plan, growth opportunities, and current financial situation.

Finding the perfect support

Often businesses wait too long to hire their first employees and then have to rush the decision.

Below are some considerations, along with Hiring & Recruitment tips to assist you in making the right choice for steady business growth and preparing an employment offer that is compliant.

Offering an 'illegal' job can have severe legal, reputational and operational ramifications to business.

Assess your business need

Consider what kind of support or resources you need to hire. Determine where the extra work comes from. Is it skilled work, service-related or administrative? Are there systems or processes you can streamline to save time?

Sometimes, outsourcing things like payroll administration, bookkeeping or repetitive tasks that don't require too much personal attention, can free you to focus on your core business.

Once you've evaluated these options, consider hiring someone for skilled work. Create a relevant job description and employment offer, then proceed with the Hiring and Recruiting steps.

Understand your legal and financial commitments

Make sure you understand your commitment to the employee in terms of costs. These are ongoing costs to your business. The following are important considerations you need to be confirm and include in your employment offer.

• Award or Agreement - determine what Award or Agreement the employee will work under. This will determine their pay, conditions, hours of work and many other details.

• Salary - what is the minimum salary and an appropriate offer based on their experience.

• Other additional payments - consider hours or work, rosters, breaks, allowances, penalty rates and leave payments.

Although labour costs aren't typically considered fixed, minimum costs exist once you employ someone, such as notice periods and Superannuation payments. I recommend employers treat labour costs as fixed when preparing annual budgets.

Create a compliant employment offer

Many small businesses offer jobs verbally then follow up with necessary paperwork for payroll, tax and Super. However, Fair Work guidelines require you provide detailed employment terms and conditions to your employees. Most employees know their rights, so it's crucial to be well informed.

Put your employment offers in writing referencing:

• appropriate Award or Agreement

• state the remuneration

• payment regularity

• performance reviews

• probationary periods.

Include:

• leave entitlements

• Superannuation

• termination terms

• other benefits or conditions

And ensure you provide all necessary information before the new employee signs on.

Guidance is available from online resources or you can engage an HR Consultant to help ensure you develop compliant contracts.

Prepare a smooth onboarding process

New employees have many documents to complete for salary payments, Superannuation, taxation, insurance, etc. You will also need to collect next-of-kin information and any relevant health or medical details. Following a pre-defined onboarding checklist ensures all information is gathered before their first day, aligning with privacy and confidentiality guidelines.

Plan the induction

Some companies have formal induction processes, while others offer guidelines on a less formal basis. Always plan the employee's first day, even if it's simply work location, equipment, uniforms, and safety requirements. Sometimes pre-employment health, safety, and training may be necessary to ensure a productive start.

An induction program doesn't need to be complex. Provide a list of tasks to learn, people to meet, and expectations for the first days, weeks, and month. A buddy system can be effective in helping a new employee feel comfortable and informed so they can perform their role safely and efficiently.

Seek help if you don't hire regularly

While you can handle everything independently, using an HR Consultant or specialist can save time, money and the stress of wondering if your employment offer is compliant, especially if you don't hire regularly. Whether you do it yourself or seek professional help, getting it right is crucial.

Approximately 26% of job seekers reported having a job offer rescinded over the past year. Of those, about 6% went on to file a formal complaint or take legal action against the employer.

Victoria University 2023 report on Rescinded Job Offers.

Over to you

How do you ensure your employment contracts are up-to-date, legal and meet your business requirements? Do you have any additional tips you can share?

Need help making sure your offer documents are compliant? Get in touch. [email protected]