What key employment law obligations must I follow as a business owner?

Businesses must comply with national and state-specific employment laws, including:

• Providing fair and lawful employment contracts
• Meeting minimum wage and award conditions
• Ensuring a safe, discrimination-free workplace
• Following proper processes for performance and termination

What defines a casual employee?

A person is a casual employee if, when they start employment:

• the employment relationship has no firm advance commitment to ongoing work, taking into account a number of factors, 
• and they’re entitled to a casual loading or specific casual pay rate under an award, registered agreement, or employment contract.

They:

• Are paid a loading (usually 25%) instead of leave entitlements
• Can accept or decline shifts
• Do not accrue sick or annual leave

Can casuals become permanent?

Yes. After 12 months, casual employees may request permanent (part-time/full-time) conversion if they have worked a regular pattern of hours.

Do casual employees get unfair dismissal protections?

Casuals may be eligible if they’ve worked regularly for at least 6 months (or 12 months in small businesses) and meet other criteria.

What is a fixed-term employment contract?

A fixed-term contract is a legal agreement where employment is offered for a specific period or until a particular task or project is completed. Employment automatically ends on the specified date or event, with no guarantee of ongoing employment.

Fixed-term employees are covered by the Fair Work Act 2009 (Cth) and relevant modern awards or enterprise agreements.

When is a fixed-term contract appropriate?

Fixed-term contracts can be used when:

• Employment is tied to a specific project with an end date.
• The role is funded externally (e.g., government grants) for a limited period.
• Covering a temporary absence (e.g., parental leave, long service leave).
• For short-term peak demand needs.

What must be included in a fixed-term contract?

Key elements:

• Start and end date (or the specific event ending the role)
• Nature of the contract — why it’s fixed-term
• Remuneration and conditions, consistent with the National Employment Standards (NES) and any applicable award
• Notice provisions (if ending early)
• Leave entitlements (annual leave, personal leave, etc.)
• Early termination rights (if any)
• Issue the Fixed-Term Contract Information Statement (FTCIS) 

Can a fixed-term contract be ended early?

Yes, a fixed term contract can be ended early if:

• There is a clause allowing early termination by giving notice (or payment in lieu).
• Serious misconduct occurs, allowing summary dismissal under Fair Work principles.
• Both parties mutually agree to end the contract early.

What rights do fixed-term employees have?

Fixed-term employees are generally entitled to:

• • The same rights and entitlements as permanent employees under the National Employment Standards (NES).
  • Annual leave, personal/carer’s leave, and public holiday benefits.
  • Protection from unfair dismissal (after the minimum employment period — 6 months for large businesses, 12 months for small businesses).

• Superannuation contributions in line with the Superannuation Guarantee (SG) legislation.

Recent Changes: New Restrictions on Fixed-Term Contracts (December 2023)

Under the Secure Jobs, Better Pay Act 2022 reforms:

• Fixed-term contracts must not exceed 2 years in duration (including extensions).
• Fixed-term contracts can only be renewed once.
• Employers must issue a Fixed-Term Contract Information Statement (FTCIS) at the start of the employment (along with the Fair Work Information Statement).

Exceptions apply for:

• Specialised roles requiring distinct expertise
• Temporary funding situations (e.g., grants)
• Temporary replacement employees
• High-earning employees above the Fair Work High Income Threshold

Can fixed-term contracts be renewed?

• Renewal is possible, but only once unless a lawful exception applies.
• If repeatedly extended, the employment relationship may legally be considered ongoing.
• Always review carefully and seek HR advice before issuing renewals.

What happens at the end of a fixed-term contract?

• Employment ends automatically on the specified date or event.
• No notice is required unless stated otherwise in the contract.
• A clear and respectful offboarding process is recommended.
• Employees may still claim unfair dismissal if they were given an expectation of continued work and it is not renewed in a lawful manner.

What’s your approach to performance management?

Performance should be managed fairly, constructively, and consistently. Steps include:

1. Clear expectations and role descriptions
2. Informal feedback and coaching
3. Formal performance review (if needed)
4. Written improvement plans for ongoing issues
5. Escalation to formal warning or HR processes if no improvement

What do I do if someone is underperforming?

Always address issues early and document discussions. Use a performance improvement plan (PIP) if necessary and ensure transparency.

What is wage theft?

Wage theft occurs when an employer deliberately underpays wages, superannuation, or entitlements — including failing to:

• Pay correct award rates
• Provide penalty rates, allowances, or loadings
• Accurately record hours or breaks
• Pass on superannuation contributions

What are the penalties for wage theft?

Wage theft can carry significant legal penalties, including fines and criminal charges in some states (e.g., VIC, QLD). It can also severely damage brand and employee trust.

How do we avoid wage theft?

You can avoid wage theft by:

• Using compliant payroll systems
• Staying updated with award changes
• Regularly auditing payslips and rosters
• Training managers and payroll on compliance
• Encouraging employees to report issues early

What do I do if I see or experience something wrong?

Report it confidentially to HR or your manager. All concerns must be taken seriously and investigated promptly.