Do your employment contracts meet the requirements of Australia’s Fair Work Commission? Do you have employment contracts in place?
In Australia there are over a million sole traders who never need to worry about managing employees, however those businesses may hire employees, including contractors, down the track.
In this blog post I want to share with you the value of having employment contracts and how you can purchase documentation to make the process easier.
Are you at risk of losing a good employee?
It’s very common for a small business to rely on an accountant or BAS Agent to assist with their financial matters, but one area where business owners may get caught out is when the relationship between the employer and the employee breaks down. When there is no employment contract in place between the employer and the employee, or a contract that is not compliant, a relationship breakdown can become costly for the business.
Non-compliant employment contracts are not just limited to small business; I’ve been surprised to learn that even larger companies often get this wrong.
When I was hiring a new team member recently, during the interview process I asked why he was leaving his current employer. He told me it was because that he didn’t have an employment contract. What this translated into was uncertainty around the overall employee/employer relationship and in particular how their entitlements were being met; for an employee this can also raise questions around the professionalism of their employer. He didn’t want to have to take his employer to court so he found it easier to look for another job.
How can you ensure your documentation is right?
Knowing how to produce the right HR documentation can be burdensome, that’s why many businesses choose to purchase documentation from a third party. Purchasing through a third party such as Reckon can give you peace of mind knowing that the documentation complies with the current Fair Work Act and is signed off by a reputable law firm.
Examples of HR documentation you can purchase through Reckon are:
1. Full Time Employment Contracts
2. Part Time Employment Contracts
3. Casual Employment Contracts
4. And Service Agreements for Contractors
By purchasing the documentation through a provider it may help you avoid paying legal costs down the track if the existing documentation fails to meet the requirements of the Fair Work Commission.
Have employment contracts been useful for your business?
Find out more about Reckon’s HR documents for small business >
Are you a Reckon Docs client? Find out more about Reckon’s HR documentation for accounting professionals >