HR Obligations for Small Business Owners

As a business owner you have many obligations when it comes to employing individuals.

The majority of small business owners believe they have different employment obligations compared to large business owners. Unfortunately, this isn’t the case!

Obligations small business owners have under the Fair Work Act

Many small business owners do not understand their obligations under the Fair Work Act.

In our experience, some Small Businesses feel that due to the limited number of employees they are governed by a different set of rules. While this might be true in specific circumstances, for those businesses who have less than 15 Employees they can qualify for the Small Business Exemptions. It gives Small Businesses greater flexibility and less financial burden compared to Larger Businesses. Examples of this include:

• reduced liability when it comes to redundancy pay-outs; and
• extension of probation to a 12month period.

These are obviously subject to any Modern Award or Enterprise Bargain Agreements clauses.

So how do businesses of any size understand their Employment obligations? The right solution is the one that works for that business. It’s not something that can be copied and pasted. The best way to ensure success is to have at a minimum strong Human Resource (HR)  foundations. We suggest Employment Contracts, Position Descriptions and Workplace Policies/ Employee Handbook. This will then allow the business to naturally grow as the Employee numbers increase.

Employment Contracts 

An Employment Contract outlines the terms and conditions of the employment relationship.

A contract provides the employer and employee a clear understanding of the relationship and the elements that create this relationship. These include but are not limited to the position of employment, nature of employment (full time, part time or casual), remuneration structure including superannuation, leave entitlements, location of work and termination.

Position Descriptions 

A Position Description is a document that outlines a positions purpose, responsibilities and duties.

It can be used for managing performance or career development of an Employee. It also supports a business structure and provides for clear direction.

It is recommended that the Position Description is a separate document to the Employment Contract. This allows flexibility for changes in positions from time to time without having to rewrite and resign a new Employment Contract; unless the role is completely different, and a new Employment Contract is warranted.

Employee Policies/Handbook 

An Employee Handbook is a document that outlines workplace expectations, policies, procedures, standards and boundaries in relation to Employees.

It covers legislative matters and best practice implemented set by the Employer.

The Employee Handbook is essentially the do’s and the don’ts that an Employee needs to aware of, to ensure that they are undertaking their employment effectively and sticking to the rules.

The Handbook should be acknowledged and accessible by all Employees.

HR support for Small Business Owners

At Now Actually, we customise our support for each individual business and tailor it to fit the needs for each business. We understand how HR for small business owners work, and we work towards each unique businesses’ goals, whatever they might be.

Contact us today to have a no obligation consultation to discuss how we can best support your small business.