The 10 Pillars of Australian HR You Need to Know

Navigating the complexities of human resources (HR) in Australia takes a solid understanding of key laws and frameworks that govern employment practices. 🧠

From the Fair Work Act 2009 to workplace health and safety regulations, these ten pillars of Australian HR are essential for fostering a fair, safe, and productive work environment. ⬇️

Fair Work Act 2009

What is the Fair Work Act?

The Fair Work Act 2009 is the primary legislation that governs employment and industrial relations in Australia. It was introduced to create a balanced framework for cooperative and productive workplace relations, promoting national economic prosperity and social inclusion 🙌

What does the Fair Work Act cover? 

The Fair Work Act 2009 aims to provide a clear set of rules and guidelines for employment practices, protect employee rights, and ensure fair treatment in the workplace. It balances the interests of both employers and employees to foster productive and cooperative working environments.

The Fair Work Act covers ⬇️

• The National Employment Standards (NES)
• Modern Awards
• Enterprise agreements
• Anti-discrimination legislation
• Superannuation
• Privacy and confidentiality 
• Employee termination and redundancy
• Minimum wage
• Unfair dismissal protections
• The right to request flexible work arrangements
• Industrial action
• Transfer of business
• Workplace Health and Safety (WHS)
• Equal Employment Opportunity (EEO)
• Record-keeping
• Payslips
• Fair Work information statement

National Employment Standards (NES)

The National Employment Standards (NES) are a set of 11 minimum employment entitlements that have to be provided to all employees in Australia covered by the national workplace relations system. These standards ensure fair and equitable treatment for employees. 

Key NES Standards

Maximum weekly hours

• Standard working week of 38 hours plus reasonable additional hours

Requests for flexible working arrangements

• Eligible employees can request changes to their working arrangements
• Eligibility includes parents or carers of a child under school age, employees with disabilities, employees aged 55 or older, and those experiencing family violence

Parental leave and related entitlements

• Up to 12 months of unpaid leave for new parents, with the option to request an additional 12 months
• Includes adoption-related leave

Annual leave

• Four weeks of paid annual leave per year for full-time employees
• Pro rata for part-time employees

Personal/carer’s leave and compassionate leave

• 10 days of paid personal/carer’s leave per year
• Two days of unpaid carer’s leave as required
• Two days of compassionate leave for each permissible occasion (paid for full-time and part-time employees, unpaid for casuals)

Community service leave

• Unpaid leave for voluntary emergency management activities
• Paid leave for jury duty, with employers required to make up the difference between jury duty pay and the employee’s base rate for up to 10 days

Long service leave

• Entitlements vary by state and territory legislation, generally accessible after a long period of continuous service

Public holidays

• Entitlement to a paid day off on public holidays, except where reasonably requested to work

Notice of termination and redundancy pay

• Minimum notice periods for termination based on length of service
• Redundancy pay entitlements based on length of service

Fair work information statement

• Employers must provide this statement to all new employees, outlining their rights and entitlements under the Fair Work Act

Workplace Health and Safety (WHS) Laws

What are the WHS laws?

Workplace Health and Safety (WHS) laws in Australia are designed to ensure the safety, health, and welfare of employees and other people who might be affected by the work being carried out. These laws are governed by both federal and state/territory legislation, with the key piece of federal legislation being the Work Health and Safety Act 2011.

There are federal WHS laws, like the Work Health and Safety Regulations 2011, and specific laws for each state + territory. There are also specific WHS laws and regulations like 👇 

• Various state and federal laws specific to the mining and petroleum industries, ensuring safety in these high-risk sectors
• Specific regulations and acts like the Electrical Safety Act 2002 (QLD) aimed at ensuring electrical safety in workplaces
• Regulations governing the storage, handling, and transportation of dangerous goods and hazardous substances, such as the Dangerous Goods (Road and Rail Transport) Act 2008 (NSW)
• Specific regulations on asbestos management, such as the Work Health and Safety (Asbestos) Amendment Regulation 2016 (NSW)

What are WHS employer responsibilities?

Employers, also known as “Persons Conducting a Business or Undertaking” (PCBU), have a primary duty of care to ensure the health and safety of their workers and others at the workplace. This responsibility is fundamental to maintaining a safe working environment and encompasses various aspects, including the provision of safe work systems, equipment, and conditions.

Employers have several key responsibilities under Workplace Health and Safety (WHS) laws to ensure a safe and healthy working environment for their employees. These responsibilities are designed to minimise risks and protect workers from harm ⬇️

Provide a safe work environment

• Ensure the workplace is free from health and safety risks
• Maintain safe systems of work and ensure that all plant, structures, and substances are used safely

Provide safe equipment and substances

• Ensure that machinery, equipment, and substances are safe and properly maintained
• Provide information, training, and supervision on the safe use of equipment and substances

Identify and manage risks

• Identify hazards and assess the risks associated with them
• Implement measures to eliminate or minimise those risks
• Regularly review and update risk management processes to address new and changing hazards

Health and safety policies and procedures

• Develop and implement comprehensive WHS policies and procedures
• Ensure all workers are aware of and understand these policies and procedures
• Regularly review and update WHS policies and procedures to ensure they remain effective

Training and information

• Provide adequate training, information, and supervision to workers to ensure they can perform their work safely
• Ensure that workers are competent to undertake their tasks safely
• Provide ongoing training to keep workers updated on safety practices and procedures

Consultation and representation

• Engage in regular consultation with workers and their representatives on WHS matters
• Establish health and safety committees and support health and safety representatives (HSRs) if required
• Ensure workers can participate in decisions that affect their health and safety

Monitor and review

• Regularly monitor and review health and safety practices to ensure they are effective and comply with legal requirements
• Conduct regular workplace inspections and audits to identify potential hazards
• Keep records of incidents, injuries, and hazards, and use this information to improve safety practices

Emergency procedures

• Develop and maintain effective emergency procedures to address potential workplace emergencies
• Ensure workers are trained in these procedures and conduct regular emergency drills
• Review and update emergency procedures regularly to ensure they remain relevant and effective

Provide Personal Protective Equipment (PPE)

• Supply appropriate PPE to workers at no cost to them
• Ensure PPE is properly maintained and replaced as necessary
• Provide training on the correct use of PPE

Reporting and record-keeping

• Report notifiable incidents, such as serious injuries, illnesses, and dangerous incidents, to the relevant WHS authority
• Maintain accurate records of risk assessments, training, incidents, and other relevant WHS documentation
• Use records to identify trends and areas for improvement in workplace safety

Anti-Discrimination Legislation

Australia has several key pieces of legislation aimed at preventing discrimination and promoting equality in the workplace. These laws cover various aspects of discrimination and ensure that all individuals are treated fairly and with respect 👇

Racial Discrimination Act 1975

The Racial Discrimination Act 1975 aims to promote equality before the law for people of all races and to make discrimination on the basis of race, colour, descent, or national or ethnic origin unlawful. 

It prohibits discrimination in employment, provision of goods and services, housing, and other areas of public life. This Act covers both direct and indirect discrimination and allows individuals to lodge complaints with the Australian Human Rights Commission (AHRC).

Sex Discrimination Act 1984

The Sex Discrimination Act 1984 seeks to eliminate discrimination on the basis of sex, marital or relationship status, pregnancy, potential pregnancy, breastfeeding, family responsibilities, and sexual orientation, gender identity, and intersex status. 

Key provisions of the Act prohibit discrimination in employment, education, provision of goods and services, accommodation, and the administration of Commonwealth laws and programs. The Act also addresses sexual harassment and provides protection against it, including provisions for affirmative action to promote gender equality in the workplace.

Disability Discrimination Act 1992

The Disability Discrimination Act 1992 aims to eliminate discrimination against people with disabilities, ensure equal opportunity, and promote community acceptance of the principle that people with disabilities have the same fundamental rights as all members of the community. This Act prohibits discrimination in employment, education, access to premises, provision of goods and services, accommodation, and the buying and selling of land. It requires employers and service providers to make reasonable adjustments to accommodate people with disabilities and outlines the process for lodging complaints with the AHRC.

Age Discrimination Act 2004

The Age Discrimination Act 2004 aims to eliminate discrimination on the basis of age in many areas of public life and to ensure that everyone, regardless of age, has the same opportunities and rights. 

The Act prohibits discrimination in employment, provision of goods and services, education, accommodation, and administration of Commonwealth laws and programs. It covers both young and older individuals, promoting fair treatment across all age groups. It also includes provisions for positive discrimination or measures intended to meet the needs of people of different ages, where such measures are reasonable.

Industrial Relations Systems

Australia’s industrial relations systems encompass the frameworks and mechanisms through which employers, employees, and their representatives interact and negotiate to establish workplace conditions and resolve disputes

Collective bargaining

Collective bargaining is a process where employers and employees negotiate terms and conditions of employment, including wages, working hours, and other workplace matters. This process can be conducted at various levels:

• Enterprise agreements: These are agreements made at the workplace level between employers and employees (often represented by unions). They must be approved by the Fair Work Commission to ensure they pass the “better off overall test” compared to the relevant award
• Industry awards: These are legal documents that outline minimum pay rates and conditions of employment for specific industries or occupations

Industrial action

Industrial action refers to measures taken by employees or employers to enforce demands or express grievances. It includes strikes (employees stop working) and lockouts (employers prevent employees from working). The Fair Work Act 2009 regulates industrial action, allowing it only during the bargaining process for a new enterprise agreement and requiring it to be lawful. Key points include:

Protected action: Industrial action that is legally protected and taken during the bargaining process for a new enterprise agreement

Unprotected action: Industrial action that is not legally sanctioned, often leading to penalties

Processes for resolving workplace conflicts

Processes for resolving workplace conflicts are designed to address and resolve disputes between employers and employees efficiently and fairly. These mechanisms include:

• Fair Work Commission (FWC): The independent national workplace relations tribunal that plays a central role in resolving disputes. The FWC handles unfair dismissal claims, disputes regarding enterprise agreements, and other workplace issues
• Mediation and conciliation: These processes involve a neutral third party who helps the disputing parties reach a mutually acceptable resolution. Mediation is less formal and more flexible, while conciliation often involves a commissioner from the FWC
• Arbitration: When mediation or conciliation fails, the FWC may use arbitration, where a commissioner makes a binding decision to resolve the dispute
• Grievance procedures: Internal procedures within organisations that allow employees to raise and resolve issues or complaints about workplace conditions or treatment

Superannuation Guarantee (Administration) Act 1992 

The Superannuation Guarantee (Administration) Act 1992 is a key piece of legislation in Australia that mandates the compulsory superannuation (retirement savings) system for employees. 

The Act requires employers to contribute a minimum percentage of an employee’s ordinary time earnings to a complying superannuation fund or retirement savings account, ensuring that workers save for their retirement. 💵

What is the Superannuation Guarantee (Administration) Act?

The purpose of the Superannuation Guarantee (Administration) Act 1992 is to:

1. Ensure that all employees receive superannuation contributions from their employers
2. Increase retirement savings and reduce reliance on the age pension
3. Provide a standardised framework for the administration of superannuation contributions

Employer and employee obligations

Under the Superannuation Guarantee (Administration) Act 1992, employers have several key obligations:

• Superannuation contributions: Employers must contribute a minimum percentage of each eligible employee’s ordinary time earnings to a superannuation fund. As of 2024, this rate is 11% of the employee’s earnings, but it is scheduled to gradually increase to 12% by 2025.
• Choice of fund: Employers must provide eligible employees with a choice of superannuation fund. If an employee does not choose a fund, the employer must pay the contributions into a default fund that meets certain requirements.
• Timely payments: Superannuation contributions must be made at least quarterly by the due dates set by the Australian Taxation Office (ATO). Failure to pay on time can result in penalties.
• Record keeping: Employers must keep detailed records of superannuation contributions, including amounts paid, dates of payments, and the superannuation fund details.
• Reporting obligations: Employers must report superannuation contributions on employees’ payslips and submit relevant information to the ATO.

Employee Termination and Redundancy

Minimum notice periods

When terminating an employee, employers must provide a minimum notice period based on the employee’s length of continuous service. The notice period allows the employee time to find alternative employment. The standard minimum notice periods under the Fair Work Act 2009 are as follows:

• Less than 1 year of service: 1 week notice
• 1 to 3 years of service: 2 weeks notice
• 3 to 5 years of service: 3 weeks notice
• More than 5 years of service: 4 weeks notice

If the employee is over 45 years old and has completed at least 2 years of continuous service, they are entitled to an additional week of notice. Employers can provide payment in lieu of notice, which means the employee is paid the equivalent amount they would have earned during the notice period without having to work.

Redundancy pay

Redundancy pay is provided to employees who are terminated due to their position becoming redundant, meaning the employer no longer requires the job to be done by anyone. The amount of redundancy pay is determined by the employee’s length of continuous service with the employer and is calculated as follows:

• 1 to 2 years of service: 4 weeks pay
• 2 to 3 years of service: 6 weeks pay
• 3 to 4 years of service: 7 weeks pay
• 4 to 5 years of service: 8 weeks pay
• 5 to 6 years of service: 10 weeks pay
• 6 to 7 years of service: 11 weeks pay
• 7 to 8 years of service: 13 weeks pay
• 8 to 9 years of service: 14 weeks pay
• 9 to 10 years of service: 16 weeks pay
• 10 years or more of service: 12 weeks pay

Note that small businesses (those with fewer than 15 employees) may be exempt from paying redundancy pay.

Consultation requirements for significant workplace changes

Employers are required to consult with employees and their representatives (e.g., unions) about significant workplace changes that are likely to have a major impact on employees. This includes changes such as restructures, redundancies, and changes in working hours or conditions. The consultation process involves:

• Providing relevant information: Employers must provide affected employees with information about the nature of the changes, the expected effects on employees, and any measures the employer is taking to mitigate adverse effects
• Opportunity to discuss: Employees must be given the opportunity to discuss the proposed changes and provide feedback or suggestions
• Considering feedback: Employers must consider any feedback or suggestions from employees before making a final decision

Fair Work Commission

The Fair Work Commission (FWC) is the independent national workplace relations tribunal in Australia. It plays a critical role in resolving disputes related to termination and redundancy, among other employment issues. The FWC’s responsibilities include:

• Unfair dismissal claims: Employees who believe they have been unfairly dismissed can lodge a claim with the FWC. The commission will investigate the claim and can order remedies, including reinstatement or compensation, if the dismissal is found to be unfair
• Dispute resolution: The FWC can mediate and arbitrate disputes between employers and employees, including those related to redundancy and significant workplace changes
• Approving enterprise agreements: The FWC reviews and approves enterprise agreements to ensure they meet the “better off overall test” compared to the relevant award
• Setting minimum wages and employment conditions: The commission plays a role in setting and adjusting minimum wages and employment conditions through the award system

Australian Employment Contracts

An employment contract in Australia should clearly outline the terms and conditions of employment. This contract is a legally binding agreement between the employer and the employee, detailing the rights, responsibilities, and expectations of both parties ⬇️

What should be in an Australian employment contract?

Parties to the contract

• Employer’s details (Name, address, contact information)
• Employee’s details (Name, address, contact information)

Position and duties

• Job title
• Job description
• Reporting line

Employment type

• Full-time, part-time, or casual
• Fixed-term or permanent

Start date and duration

• Commencement date
• Probation period
• Contract duration (for fixed-term contracts)

Remuneration and benefits

• Salary or wage (including frequency)
• Superannuation
• Bonuses and incentives
• Allowances

Working hours

• Ordinary hours of work
• Overtime conditions and compensation

Leave entitlements

• Annual leave
• Personal/carer’s leave
• Parental leave
• Other leave (e.g., long service leave, community service leave)

Termination of employment

• Notice periods (for employer and employee)
• Redundancy provisions
• Grounds for immediate termination

Confidentiality and privacy

• Confidential information obligations
• Privacy handling (in compliance with the privacy act 1988)

Intellectual property

• Ownership of intellectual property created during employment

Policies and procedures

• Reference to company policies
• Code of conduct

Dispute resolution

• Grievance procedures

Variations to the contract

• Amendment process

Signatures

• Employee’s signature and date
• Employer’s signature and date

Equal Employment Opportunity (EEO)

Equal Employment Opportunity (EEO) refers to the fair treatment of all employees and applicants in all aspects of employment. It ensures that everyone has an equal chance for employment, promotions, and training, regardless of their background or characteristics. Here are the key aspects of EEO ⬇️

Key aspects of the Equal Employment Opportunity (EEO)

Non-discriminatory hiring practices

• Equal access: Ensuring all job applicants have equal access to job opportunities
• Merit-based selection: Hiring decisions are made based on the candidate’s qualifications, skills, and experience rather than on personal characteristics such as race, gender, age, disability, or religion
• Bias-free advertising: Job advertisements are free from discriminatory language and requirements that are not essential to the job

Fair treatment in promotions and training

• Equal opportunities: All employees have equal opportunities for promotions and professional development
• Merit-based advancement: Promotions and training opportunities are based on performance, skills, and potential rather than personal characteristics
• Transparent criteria: Clear and objective criteria for promotions and training to ensure fairness and transparency

Diversity and inclusion initiatives

• Inclusive culture: Promoting a workplace culture that values and respects diversity
• Diversity programs: Implementing programs and policies that support diversity and inclusion in the workplace
• Awareness training: Providing training to employees on diversity, inclusion, and cultural competence to foster a more inclusive environment

Complaint mechanisms for addressing discrimination

• Reporting procedures: Clear procedures for employees to report discrimination, harassment, and other EEO violations
• Confidentiality: Ensuring that complaints are handled confidentially to protect the privacy of those involved
• Investigation and resolution: Prompt and thorough investigation of complaints, with appropriate actions taken to resolve issues and prevent future occurrences
• Support for complainants: Providing support and protection from retaliation for employees who lodge complaints

Takeaway

The 10 pillars of Australian HR encompass essential frameworks and laws that ensure fair, safe, and equitable workplace practices. Key legislation such as the Fair Work Act 2009 provides the foundation for employment relations, covering areas like the National Employment Standards (NES), workplace health and safety, anti-discrimination measures, and employee rights concerning termination and redundancy. 

So, our best tips when it comes to Australian HR? 

➡️ Implement diversity and inclusion initiatives to create an inclusive environment where all employees feel valued. Encourage open communication, provide regular training, and establish clear policies to support equal employment opportunities 👍

➡️ Actively involve employees in discussions about significant workplace changes. This not only meets legal requirements but also helps in building trust and improving employee morale

➡️ Create and maintain detailed HR policies covering all aspects of employment, from hiring and training to termination and redundancy. Ensure that these policies are well-communicated and accessible to all employees

🚀 Want more Australian HR advice? We have a huge library of knowledge, resources, and guidance here at Subscribe-HR!