Fair Work Handbook
Fair Work Handbook
Fair Work Handbook
Our role
The Fair Work Ombudsman helps employers and employees understand and follow
Australian workplace laws. We do this by:
We have information available in 30 different languages to help you understand what your
rights are when working in Australia.
We’ve developed easy-to-use, free and interactive short online courses to help
businesses and managers achieve best practice and compliance with the FW Act. The
courses are on topics including hiring employees, managing performance, and having
difficult conversations in the workplace. You can complete these courses now at
www.fairwork.gov.au/learning.
get help with workplace laws, including help sorting out workplace issues, and
save our replies
save results from our Pay, Shift, Leave, and Notice and Redundancy Calculators
save your favourite website pages, including award summaries from Find my
award
You can check your knowledge of workplace laws with the FWO’s Workplace Basics quiz.
The quiz will provide you with tailored feedback and resource links to brush up on any
areas you need help with. You can access the quiz at www.fairwork.gov.au/basicsquiz.
Pay ...................................................................................................................................... 7
Leave ................................................................................................................................... 8
Flexibility ............................................................................................................................ 15
Protections at work............................................................................................................. 18
The minimum entitlements are set out in the National Employment Standards and the award
or agreement that applies to your business.
The national minimum wage and the NES make up the minimum entitlements for employees
in Australia. An award, employment contract, enterprise agreement or other registered
agreement can't provide conditions that are less than the national minimum wage or the
NES. They can’t exclude the NES.
1. Maximum weekly hours of work – 38 hours per week, plus reasonable extra hours
4. Annual leave – four weeks paid leave per year, plus an extra week for some
shiftworkers
5. Personal/carer’s leave and compassionate leave – 10 days per year paid personal/
carer’s leave, two days unpaid carer’s leave and two days compassionate leave as
required and five days unpaid family and domestic violence leave (in a 12 month
period)
7. Long service leave – paid leave for employees who have been with the same
employer for a long time. This may be under the NES or applicable state or territory
law
8. Public holidays – a paid day off on a public holiday, unless reasonably requested to
work
10. Fair Work Information Statement (FWIS) – a document that must be provided to all
new employees. Download the FWIS from www.fairwork.gov.au/fwis.
Awards
An award is a document that sets out the minimum wages and conditions for a certain job
(for example, the Clerks Award) or industry (for example, the Retail Award). They apply
automatically unless your employees are covered by a registered agreement. Awards apply
on top of the NES and can include information on:
superannuation
Awards may not apply to some managers or high income employees (who have an
appropriate written guarantee of annual earnings). To work out which award applies to your
business and how your employees should be classified go to www.fairwork.gov.au/awards-
and-agreements/awards/find-my-award.
Agreements
A registered agreement is a document that sets out the terms and conditions that apply to a
particular business or workplace. Like awards, agreements can have extra entitlements, but
Employment contracts
An employment contract can be in writing or verbal. It’s best practice to record your
employee’s terms and conditions when they’re hired. This can be done in a letter of
engagement or through a more formal contract.
A contract must provide the same or more generous conditions than the NES and any
relevant award or agreement. A contract can’t undercut an employee’s minimum
entitlements from the NES or any relevant award or agreement, even if they agree to it.
Pay
An employee’s minimum pay rate is set by the relevant award or agreement.
The pay rate in an agreement can’t be less than the base pay rates in an award. Where
there is no award, pay rates in a registered agreement can’t be less than the national
minimum wage. This rule only applies to base pay rates, penalties, loadings and allowances
still come from the agreement.
Our Pay and Conditions Tool (PACT) calculates base pay rates, allowances and penalty
rates (including overtime).
Every year, the Fair Work Commission reviews the national minimum wage and pay rates
under awards. Any changes that are made begin on the first full pay period on or after 1
July.
age (for example, junior employees may get different pay rates)
If any of these factors change, then your employee’s pay rate may need to change.
Where an employee is paid a salary under a contract, you need to make sure the amount
covers all the employees’ entitlements under the relevant award or agreement.
Leave
Employees take leave for many reasons, including to go on a holiday, because they are sick
or to take care of sick family members.
Minimum leave entitlements for employees come from the NES. An award, agreement or
contract of employment can provide for other leave entitlements but they can’t be less than
what’s in the NES. For more information about the different types of leave visit
www.fairwork.gov.au/leave.
You need to keep detailed records for each employee about their employment, such as pay,
hours of work, leave, superannuation and other matters.
Pay slips
Employees need to be issued a pay slip within one working day of being paid. Pay slips can
be issued electronically or in hard copy.
Pay slips have to cover details of an employee’s pay for each pay period. Below is a list of
what to include:
if paid hourly – the employee’s hourly rate, the hours worked at that rate, and the
total amount paid at that rate
any deductions
super contributions made or required for that pay period and the fund name or
name and number.
Our short, interactive Record-keeping and pay slips online learning course assists small
businesses in understanding and meeting their record-keeping and pay slips obligations.
The course is available at www.fairwork.gov.au/learning and provides links to our
resources including pay slip and record-keeping templates at
www.fairwork.gov.au/templates.
Hiring employees
Hiring a new employee is an important decision for your business. We have specialised
resources to help you find the right person, get them started and meet your obligations under
workplace laws. You can:
Check which award or agreement will apply to the employee. You can find out
more at www.fairwork.gov.au/awards □
□
Determine the classification level under the award or agreement
Decide whether the position will be full-time, part-time or casual and whether
it’s permanent or temporary □
Find out the minimum pay rates, penalties, loadings and allowances. You can
use our pay calculator at www.fairwork.gov.au/pact □
It’s worthwhile to write a position description setting out the required duties,
skills and experience the employee will need to be suitable for the job. You can □
You need to give new employees the Fair Work Information Statement which
you can download from www.fairwork.gov.au/fwis □
It’s best practice to give new employees a letter of engagement which sets
out the terms and conditions of their employment. This helps them
understand what’s expected and what they can expect too. You can
download our template engagement letters from
□
www.fairwork.gov.au/templates
Unpaid work trials for any period beyond what is reasonably required to demonstrate the
skills required for the job are unlawful. What’s reasonable will vary depending on the
nature and complexity of the work, but could range from an hour to one shift. For more
information about unpaid trials and unpaid work, visit www.fairwork.gov.au/unpaidwork.
Independent Contractors
An independent contractor is someone who is self-employed and contracts their services to
clients, such as other businesses. Independent contractors aren’t employees and have
different rights.
It’s important to understand the difference between independent contractors and employees
and to give them their correct entitlements. Just because a worker has an ABN or issues
invoices doesn’t automatically make them an independent contractor. Also, labelling people
as independent contractors or getting them to sign contracts which state they are doesn’t
mean this either. There are a number of factors that need to be considered.
Your business may need to engage contractors from time to time. If you’re contracting out
work to another business, this can create a contracting network or supply chain. It makes
business sense to manage your supply chain and use contractors who do the right thing
and follow workplace laws. Download our Guide to contracting labour for small business
at www.fairwork.gov.au/supplychain for practical steps to minimise your risk of hiring a
non-compliant contractor.
If problems arise in the workplace it's important to take time to understand and discuss the
issues with your employees. Most workplace issues can be resolved with the right tools.
use our Effective Dispute Resolution Best Practice Guide which is available at
www.fairwork.gov.au/bestpracticeguides for more detailed steps and tips.
Performance management
Knowing how to manage underperformance is important for every business. If it’s not
handled quickly, well and sensitively, it is likely to have consequences for you, your
employee and the rest of the workplace.
Good employee management is linked to lower staff turnover, higher productivity and
business success.
Effective managers know how to motivate and communicate with their employees. They also
understand their legal obligations and promptly deal with any problems that arise in the
workplace.
A simple way to help you get the best from your employees is to implement a performance
system.
- Managing underperformance best practice guide for steps and practical tips
Flexibility
Flexibility in the workplace allows employers and employees to make arrangements about
working conditions that suit them. This helps employees maintain a work/life balance and
can help employers improve the productivity and efficiency of their business.
As long as employees are still receiving their minimum entitlements, employers and
employees can negotiate ways to make their workplace more flexible. Examples include
changing what hours are worked and where work is performed.
There are two formal ways employers and employees can make their workplace more
flexible:
More and more employers are making flexibility work for their business and their
employees. Complete our Workplace flexibility online learning course at
www.fairwork.gov.au/learning to find out more.
The amount of notice depends on the employee’s length of service and age. It is important to
check the award, employment contract or agreement to see whether there are any
conditions and if a longer notice period is required.
Employees who are over 45 and have worked for the business for at least two years get an
extra week of notice.
Redundancy
Redundancy happens when an employee’s employment is terminated because an employer
either:
introduces new technology (for example, the job can be done by a machine)
closes down
casual employees
apprentices
Use our Notice and redundancy calculator at www.fairwork.gov.au/pact to find out how
much notice and redundancy pay is required under the award or the NES.
Final pay
An employee should get the following entitlements in their final pay:
outstanding wages for hours they have worked, including penalty rates and
allowances
if it applies:
annual leave loading
accrued or pro rata long service leave
redundancy pay.
Sick and carer’s leave is generally not paid out when employment ends.
Remember, employees need to be given a pay slip with their final pay.
You aren’t automatically entitled to deduct money from an employee’s final pay if they
don’t give notice or fail to return items (keys, uniforms, etc.). Deductions need to be
properly authorised. For information about deductions, visit
www.fairwork.gov.au/deductions.
Unfair dismissal
Unfair dismissal is when an employee is dismissed from their job in a harsh, unjust or
unreasonable manner. The Fair Work Commission provides more information in their unfair
dismissal guides available at www.fwc.gov.au/resources/fact-sheets-guides-videos.
Businesses with less than 15 employees should use the Small Business Fair Dismissal
Code and checklist to make sure that a dismissal is fair. You can download a copy of the
Small Business Fair Dismissal Code at www.fairwork.gov.au/unfairdismissal.
Protections at work
All employees have protected rights at work. These protected rights include:
workplace rights
Workplace rights
A person has a workplace right if they:
Discrimination
An employee or prospective employee has the right to be free from discrimination at work.
Discrimination occurs in the workplace when an employer takes adverse action against an
employee or prospective employee because of a protected attribute (this includes race,
colour, sex, sexual orientation, age, physical or mental disability, family or carer’s
responsibilities and pregnancy).
firing an employee
offering a potential employee different and unfair terms and conditions for the
job compared to other employees.
A diverse and inclusive workplace is good for business. It can help you boost productivity,
reduce turnover and save money. It also minimises the risk of discrimination occurring.
Remember, we’re here to help you. For more information about resolving workplace issues
visit www.fairwork.gov.au/help.
The Fair Work Ombudsman is committed to providing you with advice that you can rely on. The information contained in this guide is general
in nature. If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association
or a workplace relations professional.
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