The staff series: Employing staff

Employing staff in Australia involves several essential steps and documentation to ensure that you comply with legal and regulatory requirements. Here’s a list of key documents and considerations you’ll need to manage:

Tax File Number (TFN) declaration:

You’ll need to collect TFNs from your employees to comply with tax laws. These are available online from the Australian Tax Office. https://www.ato.gov.au/forms-and-instructions/tfn-declaration

Fair Work Information Statement:

It’s a legal requirement to provide this to all new employees. It contains information about their conditions of employment.

There are several different types of statement depending on how the employee is engaged. All employees must receive the Fair Work Information Statement regardless of their employment type.

In addition to this there are 2 additional statements which must also be supplied to Casual or Fixed Term employees.

https://www.fairwork.gov.au/employment-conditions/information-statements

Employment Contract/Letter of Offer:

This document outlines the terms and conditions of employment, including job duties, salary, and termination conditions. Make sure it complies with the National Employment Standards (NES) and any applicable award or agreement.

Have this document avoids unnecessary confusion about a person’s employment.

Basic contracts can be created using the Fair Work tool https://employ.business.gov.au/ which sets out the basic information that must be included.

Superannuation:

Employers must contribute to their employees’ superannuation funds. Currently the superannuation rate is at 11% but is due to increase to 11.5% as of 1/7/24.

Under the super guarantee, employers have to pay super contributions on an employee’s ordinary time earnings when an employee is:

over 18 years, or
under 18 years and works over 30 hours a week.

If eligible, the super guarantee applies to all types of employees, including:

full-time employees
part-time employees
casual employees.
Temporary residents are also eligible for super.

Super has to be paid at least every 3 months and into the employee’s nominated account.

Employers should supply their staff with a Superannuation standard choice form. https://www.ato.gov.au/forms-and-instructions/superannuation-standard-choice-form

This form advises employers of the employee’s choice of fund. Employers can use it to nominate their default super fund if the employee has no existing fund.

Employees are also able to complete this form online via their My Gov account.

Right to Work Checks:

Verify that your employees have the legal right to work in Australia (e.g., Australian citizens, permanent residents, or valid visa holders).

This directly links with the need to confirm a person’s identity. Employers should sight an employee’s identity document (drivers licence, passport or other photo id)

For visa holders, Employer should check the validity & visa conditions applicable for the employee before hiring.

https://immi.homeaffairs.gov.au/visas/already-have-a-visa/check-visa-details-and-conditions/check-conditions-online

Company Policies:

Developing comprehensive employment policies is crucial for setting clear expectations and ensuring legal compliance in your business. Here are essential employment policies that you might consider implementing: