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What Do I Need To Do When Hiring An Employee?

Reading time: 6 mins

Employers need to do several important things when hiring an employee. If you’re a business owner, hiring an employee can be a daunting task. It is one of the most important decisions you’ll make.

The first thing to do when you are employing someone is to ensure that they have all the right papers and forms that are required. You will need to give them the employment contract, Fair Work Information Statement, and set up a payroll for them. You should also provide the employee with a written statement outlining the particulars of the job. This should be given along with their expected hours of work, non-work-related duties, and salary.

Further, it is important to ensure that you hire someone who will fit into your business culture and work well with your current team. However, hiring can be tricky when it comes to setting expectations and managing expectations. This guide has been written by an employment lawyer and explains how to hire employees in Australia.

Author: Farrah Motley, Director of Prosper Law and an employment lawyer.

Hire an Employment Lawyer to write an Employment Contract

When you hire a new employee, it’s important to have a written employment contract. This document should be signed by both parties and kept in a safe place. An employment contract should also be written by an employment lawyer.

The employment contract will outline the terms agreed upon by you, as the employer, and the newly hired employee. While the contract is not required to be in writing, it is strongly advised that both parties obtain a written agreement.

It will be useful for future reference and to review your rights and obligations under the agreement.

The employment contract may include the following:

  • The name of the company and its location
  • The name of the employee
  • The date of hire (or start date)
  • Job description and duties
  • Salary details
  • A statement that says whether or not there are any other conditions attached to this job – such as hours worked per week or breaks taken during working hours
  • Notice period
  • Confidentiality and Intellectual Property provisions

Fair Work Information Statement

You may have heard of the Fair Work Information Statement. This is an important document that you should provide to all new employees, as well as current or prospective employees who are considering changing their employment status.

This statement outlines your responsibilities as an employer and what you expect from them in return for their work. It also provides information about your obligations under the National Employment Standards (NES), which set out minimum conditions relating to things like hours of work, holiday pay and termination payments; how these apply to both full-time and part-time workers; how you can take disciplinary action against an employee who breaks these rules; how long those disciplinary actions last; and more.

You should provide this statement within six months of starting employment if it’s not already available on your website or intranet site at company headquarters. Otherwise, you may face monetary penalties of up to $66,600 for failing to provide such, as it is a clear violation of the NES. Further, you can be fined up to $13,320 as an individual.

Set up payroll for new employees

You need to set up a payroll system before you can start paying employees.

If you want to hire someone and are unsure of how much tax and superannuation they will be entitled to, then it is worth checking with the Australian Taxation Office (ATO). The ATO website has information about each state’s requirements for hiring staff and paying them wages, including:

  • Where do my employees have their superannuation scheme? What kind of scheme does my business have?
  • Do I need an employer contribution? How much do I need to pay my employee per week?

There are many other things that should be considered when hiring staff from another country. However, these are the main points that one should consider before finalising an application.

Superannuation must be paid to employees

Superannuation is a compulsory savings scheme for employees. It’s paid into an account on their behalf, and they can use it to pay for their own retirement when they leave work.

These contributions are paid in addition to the employee’s salary and wages. There are laws governing how much super the employer is required to pay. As the employer, you are required to pay a minimum amount based on the current super guarantee rate of the employee’s ordinary time earnings into super.

This is true whether the employee works casual, part-time, or full-time hours, and whether they are a permanent or temporary resident.

Communicate your expectations clearly at the beginning of the hiring process

When you’re hiring a new employee, it’s important to make sure that everyone knows their responsibilities and expectations from the start. A good way to do this is by having clear communication at the beginning of your hiring process. An employment lawyer can help you do this by providing clear employment policies.

Make sure that you are clear on what job duties and abilities will be required of them in order for them to perform well in their role. If there are any specific requirements or qualifications required for this position, be sure they’re included in their job description.

Assess the employee’s qualifications

As an employer, you need to make sure that the person has the right qualifications for the job. You should ask how they were trained and check that they can do a job based on this training.

As you’re considering candidates, it’s also important to get references from past employers. This can help you understand how well a candidate worked in their previous roles and how they will fit with your team.

It’s not necessary for an interviewer to ask every candidate for references (although most do) but asking at least three or four people whose skills match those required by an open role is recommended—and I recommend that you speak with more than one person at each level!

Additionally, if you’re hiring someone who needs work visa support or a work permit, make sure their application is in order before giving them any work.

You also need to check whether your potential employee is eligible to work in Australia (e.g., permanent residents). If so, then that might be enough proof of their qualifications—but if not, you could have problems later!

How can Prosper Law help?

Prosper Law is Australia’s online law firm. We provide legal advice to businesses and individuals across Australia. Our areas of legal practice include contracts, eCommerce, publishing, legal counsel and employment law.

If you need to talk to an employment lawyer, get in touch today.

Contact the team at Prosper Law today to discuss how we can provide you with your legal needs for a fixed fee or at affordable hourly rates.

Farrah Motley | Director

M: 1300 003 077

E: farrah@prosperlaw.com.au

About the Author

Farrah Motley
Director of Prosper Law. Farrah founded Prosper online law firm in 2021. She wanted to create a better way of doing legal work and a better experience for customers of legal services.

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