Understand your employer obligations with the help of MBA

Hiring employees and growing your team can be an exciting next step. However, keeping on top of what to pay your employees and which benefits you’re required to provide can be a challenge. It’s important to understand and comply with your employer obligations under the Fair Work Act (2009) Cth, the National Employment Standards and where relevant any modern Award or enterprise agreement. Additionally, you may have responsibilities under superannuation legislation and state or territory based long service leave regulations.

The following industrial instruments make up what is known as the Fair Work system which sets and protects an employee minimum pay and entitlements –

Fair Work Act 2009 (Cth) – is the primary piece of legislation governing employment law in Australia. It sets out the minimum standards for employment, including employee rights, employer obligations, and workplace conditions. The Act establishes key elements such as –

• National Employment Standards (NES)
• National minimum wage
• Fair Work Commission (FWC)
• Unfair and unlawful dismissal protections
• Enterprise agreements

National Employment Standards (NES) – provides a minimum safety net of rights and entitlements for employees in Australia, ensuring fair and consistent conditions across all workplaces. These minimum standards can’t be reduced or be removed by other industrial instruments including enterprise agreements, employment contracts or Awards.

Modern Awards – set out the minimum pay rates, conditions, and entitlements for employees in specific industries or occupations. They automatically apply to employees doing the type of work described in the award, regardless of whether the employee is paid above the Award minimum rate. Awards may not apply if the employee and employer are covered by an enterprise agreement.

Enterprise Agreement – is a legally binding agreement made between an employer (or a group of employers) and their employees which outlines the terms and conditions of employment for a specific workplace or group of employees and must be approved by the FWC. To be approved, employees must be better off overall under the enterprise agreement than under any relevant Modern Award.

Employment contract- is a formal agreement between an employer and an employee that outlines the terms, rights, and obligations of both parties. By clearly defining these aspects, it helps prevent misunderstandings and reduces the risk of legal disputes.

How MBA can assist you

Understanding employee pay and entitlements promotes a fair and transparent workplace, minimising misunderstandings and costly disputes while building trust between employers and employees. It also helps prevent and resolve conflicts over wages, hours, or benefits efficiently and fairly, using the legal framework as a guide.

The Workplace Relations Team at MBA Cn offers a variety of support services, both included with membership and available for an additional fee, to help you understand your employer obligations, including:

• Guidance and support – Providing relevant and up to date advice on employment laws, regulations, and best practices for employee management.
• Resources and templates – Access to templates for employment contracts, policies, and essential documents, including the new HR Essential Tool Kit.
• Consultation services – Direct support through phone, in-person consultations, or email whenever needed.
• Enterprise Agreement: Step-by-step support and guidance for creating or renewing your enterprise agreement, along with assistance in lodging it with the FWC.

With new laws relating to underpayment of wages and entitlements and labour hire orders coming into effect it has never been a better time to connect with the Workplace Relations team. For more information reach out to the team on 02 6175 5900.