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Staffing and Industrial Relations - Frequently Asked Questions

How do I find out how much to pay my staff?

What is an award and what does it cover?

How much notice do I need to give if I wish to terminate an employee?

What is enterprise bargaining?

What is an employee's entitlement for annual leave?

Do I need to keep a wages book?

Do I need to provide pay slips?

What is the difference between an employee and a contractor?

 

How do I find out how much to pay my staff?

Each state has a government department responsible for employment, and they are geared to answering enquiries, such as minimum rates of pay, and what your responsibilities are as an employer.  In NSW it is the Office of Industrial Relations in the Department of Commerce.  Its website is at www.industrialrelations.nsw.gov.au.

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What is an award and what does it cover?

An award is a legal document that sets out the rights and obligations of employers and employees in particular types of work.  It covers conditions of employment such as pay rates, hours of work and leave entitlements.  Some awards are State awards and some are Federal awards.  For information about Federal awards, visit the Department of Employment and Workplace Relations’ website on www.dewr.gov.au.  For information on NSW awards, visit the Office of Industrial Relations at www.industrialrelations.nsw.gov.au.

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How much notice do I need to give if I wish to terminate an employee?

The required notice is normally set down in the relevant award, and is usually one pay period.

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What is enterprise bargaining?

Where an employer and either the employees or a union negotiate and come to a mutual agreement regarding conditions of employment. The main difference from an award is that an enterprise agreement normally only applies to a particular workplace.

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What is an employee’s entitlement for annual leave?

A minimum of four weeks paid leave.

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Do I need to keep a wages book?

Yes, you must keep records that explain all wages transactions. Wages can be a major expense for a small business so you need to record wages in the payment section of your cashbook.

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Do I need to provide pay slips?

All employees must be provided with payslips. These must include the name and Australian Business Number (ABN) of the employer, employee’s name and classification, date of payment, dates relating to the pay period, gross pay (including overtime), tax deductions, particulars of all other deductions, including employee superannuation contributions, and net pay.

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What is the difference between an employee and a contractor?

An employee is bound by a contract of service, employed for or in the business.  An independent contractor is bound by a contract for service, working as a self-employed person on their own account.  For more information about this complex issue, please contact the Office of Industrial Relations on 13 16 28 or visit their website:  www.industrialrelations.nsw.gov.au.

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