Download the
Small business brief
publication on Employment 

 
 
EMPLOYMENT
 

Volume of work, customer demands and plans for future growth may require you to employ an additional worker or workers.  There are many issues that should be considered before making a commitment.

Before employing

Before employing a new worker, the work to be done should be evaluated.  The duties and responsibilities of the position, and the skills, expertise and experience that will be required to do the work should be identified.  A job description should be prepared.

The employment conditions, level of pay and other costs of employment, including the physical accommodation of the worker should be considered.  Will the benefits of employing outweigh the costs?

Employing staff

It is important to attract and retain the right people.  The employment process will run more smoothly if you know how to:

  • advertise
  • interview
  • select the right applicant
  • draw up and document a formal offer of employment

Good human resource management also includes proper induction, training and the reviewing of employee performance.  The Small Business Development Corporation (SBDC) sells a range of books that cover human resource issues.  See the complete list of publications available from the SBDC online bookshop.

Do your employees know?

Do your employees know what you expect of them, what your organisation is all about, and what their role is in your business?

Employment arrangements

The Department of Consumer and Employment Protection (DOCEP) website and Wageline 1300 655 266 provide information on wage rates, award conditions, enterprise bargaining agreements, minimum conditions, unfair dismissal and other employment related matters, under the state industrail relations system.

Information on the federal Workplace relations system for constitutional corporations is available on the Workplace Ombudsman website www.wo.gov.au and the Workplace Authority website www.workplaceauthority.gov.au, or from the Workplace Infoline Tel: 1300 363 264.

Understand your legal obligations in relation to:

  • workers' compensation insurance cover
  • superannuation guarantee legislation
  • taxation - including payroll tax
  • apprenticeships and trainees
  • long service leave
  • occupational health and safety
  • record keeping
  • equal opportunity legislation - in relation to the recruitment, management and termination of employees.

See the contacts list below for further information.

If considering a subcontractor, note that different legal rights and obligations apply to employees and subcontractors.

Taxation requirements include:

  • Registering as a PAYG withholding payer with the Australian Taxation Office (ATO).  (Registration can be completed on the ABN registration form).
  • Obtaining from your employees a completed tax file number declaration.  Forms must be remitted to the ATO within 14 days of signing.  Employees wishing to anticipate certain entitlements (eg the family tax benefit), will also need to provide you with a withholding declaration.
  • Keeping records relating to payments to employees and other workers for 5 years for the ATO.  (There are other requirements under various awards and agreements).

Workers' compensation insurance

Workers' compensation insurance cover is compulsory for all employees but cover is not available for sole traders or partners.

Cover for working directors of proprietary companies is optional, and conditions apply. 

Injury management system

From 14 November 2005 every employer must ensure that an injury management system is established in relation to their workers.  The establishment, content and implementation of the injury management system must be in accordance with the mandatory Workers’ Compensation Code of Practice (Injury Management) 2005. 

The Code and accompanying guidance notes, and simple templates for an injury management system and an injury management policy are downloadable from the WorkCover website www.workcover.wa.gov.au under publications.

Information on workers’ compensation, cover for working directors, avoidance agreements and injury management systems is available on the WorkCover WA website at www.workcover.wa.gov.au/Information/Brochures.htm or contact WorkCover WA Infoline on 1300 794 744.

Thinksafe Small Business Assistance Program

If you are interested in having a free, confidential and independent safety assessment of your workplace and a simple safety action plan prepared for you, contact the Worksafe hotline 1800 429 273 or visit the website www.worksafe.wa.gov.au for further information on safety.

Caution:

  • Workers' Compensation insurance cover should be in place before your worker commences with you.
  • Keep records of what you and your employee discuss especially when related to conditions and terms of employment.
  • Keep all your records up-to-date.
  • Do not ignore unacceptable behaviour in the workplace.
  • You may be prosecuted and have to pay unpaid entitlements or compensation if you do not comply with the various industrial laws.
  • Employment laws and regulations are complex. Do not be afraid to seek professional advice: you cannot afford to make mistakes.

Workshops

The SBDC conducts a workshop on employment.  For details of this and other SBDC workshops, call 131 BIZ (131 249) or 1800 199 125 for country callers or visit the website.

Publications

Publications available from the SBDC bookshop at 553 Hay Street Perth, or online at www.sbdc.com.au, include the following titles:

Emotional vampires: dealing with people who drain you dry PLU 42 $24.95
How to develop and write job descriptions : business management and training series  PLU 189 $44.00
Managing human resources PLU 276 $39.95
The truth about the hiring best PLU 043 $24.95
You lead, they'll follow: Vol 1: how to inspire, lead and manage people.  Really PLU 20 $29.95

For further information and guidance contact:

Small Business Development Corporation
553 Hay Street (cnr Pier Street)
PERTH WA 6000
Tel: 131 BIZ (131 249)
Fax: (08) 9221 1132
Email: info@sbdc.com.au
Website: www.sbdc.com.au

Government Departments which Provide Information for Employers

Australian Taxation Office: Internet: www.ato.gov.au
Business income tax including fringe benefits tax, PAYG and GST Tel: 13 28 66 (business)
Superannuation Tel:
Internet:
13 10 20 (superannuation)
www.ato.gov.au/super
Office of State Revenue, Department of Treasury and Finance: Tel:
Internet:
(08) 9262 1300
www.dtf.wa.gov.au
Payroll Tax (applicable if your annual payroll is $750,000 or more)  Rate is 6%
Department of Consumer and Employment Protection:
State and federal awards, conditions of employment, wages records, employer / employee agreements, employment guides, unfair dismissal, etc.

Tel:
Internet:

(08) 9222 7700
http://www.docep.wa.gov.au
WA Wageline - wage rates and conditions Tel:
Internet:
1300 655 266
www.wagenet.gov.au
Country

 Albany

Tel: (08) 9842 8366

 Bunbury

Tel: (08) 9722 2888

 Geraldton

Tel: (08) 9964 5644

 Kalgoorlie

Tel: (08) 9021 5966

 Karratha

Tel: (08) 9185 0900
WorkSafe Western Australia:
Occupational Health and Safety
Workplace safety issues

Tel:
Internet:

Email:

1300 307 877
www.worksafe.wa.gov.au
safety@docep.wa.gov.au

WorkCover Western Australia:
Workers' compensation insurance

Tel:
Internet:

1300 794 744
www.workcover.wa.gov.au

Department of Education and Training:
Vocational training
Apprenticeships and traineeships

Tel:
Internet:

13 19 54
www.det.wa.edu.au

www.apprenticeships.training.wa.gov.au

Equal Opportunity Commission:
Tel:
Freecall:
Internet:
(08) 9216 3900
1800 198 149
www.equalopportunity.wa.gov.au

State Law Publisher:
Online publications - including Statutes and Regulations

Tel:
Internet:
(08) 9321 7688
www.slp.wa.gov.au

Western Australian Industrial Relations Commission:
Online copies of awards, information on unfair dismissal, information on employer / employee agreements

Tel:
Freecall:
Internet:
(08) 9420 4444
1800 624 263
www.wairc.wa.gov.au
Australian Industrial Relations Commission: Internet:

www.airc.gov.au

Workplace Authority
Information on workplace agreements

Tel:
Internet:

Workplace Infoline 1300 363 264
www.workplaceauthority.gov.au

Federal Department of Education, Employment and Workplace Relations:
Employment and workplace relations information
Tel:
Internet:
(08) 9464 4200
www.deewr.gov.au
www.workplace.gov.au

Workplace Ombudsman
Information on the federal workplace relations system including pay and conditions

 Tel:
Internet:

1300 724 200
www.wo.gov.au

You can also access all government departments and agencies through the website www.business.gov.au
 


© Small Business Development Corporation 2004-2005