So your business is growing and you have decided that you will need an extra set of hands to get everything done.
Hiring an employee is a big step and knowing exactly what you need to have in place can be daunting. With so many rules and regulations, where do you actually start and what paperwork do you need?
Step 1) How much should I pay?
The first step is to identify the Award or Agreement that will apply to your new employee and then decide what wage is appropriate based on the type of skills and experience you are looking for. The Fair Work Ombudsman has lots of information and can help you determine which Award will apply. Researching this step first will also give you visibility over the investment the business will be making taking on an employee and how this will impact your cashflow.
Step 2) Employment Agreement
Next, the agreement between your business and employee. Will they be Full-Time, Part-Time or Casual? What are the conditions of employment and what risks do you need to cover? Again, the Fair Work Ombudsman has templates that you can use (links down the bottom) to get started.
This will also include setting clear expectations of the role and what is expected from the employee.
Step 3) Insurance!!
Once your new superstar employee is on board, you will need to ensure you have adequate Workers Compensation insurance in place. This is a requirement for businesses with employees and not having it can land you in some pretty hot water. Each state has its own Workers Compensation insurer and a variation of rule so be sure to check out their websites below for more information.
Link to Fair Work Templates: https://www.fairwork.gov.au/find-help-for/small-business/hiring-employees
Link to Workers Compensation Insurance by State: https://www.fairwork.gov.au/leave/workers-compensation
Step 4) Record Keeping
It is important that you keep good records for your employee, starting with the collection of personal information such as Date of Birth, Tax File Number, contact details etc. Employees will also need to fill in a Tax File Number Declaration form so you know what tax needs to be withheld each pay cycle.
Other considerations are; Do they need to complete timesheets? Are they entitled to leave?
It is a requirement that a payslip is issued within one working day of pay day and incorporates the correct details (a list of these can be found using the links above).
Taking on an employee is a big milestone for any business, therefore it is crucial to know your obligations as an employer. The Fair Work Ombudsman is the best place too start so be sure to check out the links above.