Developing an effective way to hire great employees is one thing. However, keeping them on board is a whole different process altogether. The weight of both processes holds equal bearing in effective business operations management. That is why it is important to offer a good package to your employees that covers all basic benefits—and more.
Australian laws state that all business owners have obligations for their employees—from CEOs, virtual CFO’s, sales teams and all other types of employees. These cover insurance, tax, superannuation, employment records and employment health and safety. Some businesses even offer more than the basics.
Here is a quick rundown of the basic employee benefits required by Australian law:
As an employer, it is your responsibility to provide protection to your employees through their compensation insurance. The workers’ compensation covers their wages while they are not fit to work and medical or rehabilitation expenses. Some employers even go as far as providing life insurance to their employees.
Taxation and Superannuation
Taxation and Superannuation obligations may differ depending on workers’ status; nevertheless, you still need to meet them. Determine whether your staff members are actual employees or contractors. Your benefits package needs to include these—again, with regard to worker status:
Pay as you go (PAYG) Withholding
Fringe Benefits Tax (FBT)
To ensure that all employees are paid correctly and have received all relevant entitlements including taxation and superannuation benefits, you are required to keep all records relevant to each and every one of your staff.
Employment records in both the state and the national system require employers to keep time and wage records for at least seven years, while calculations of long service leaves are to be kept for at least 10 years. Note that record-keeping differs depending on whether the employment is covered by the state or the national labour relations system.
The legal obligations business owners have to their employees depend on the type of labour relations system the business falls under.
Industrial awards and agreements
Contracts of employment
It is essential that you know which system applies to your business to avoid not being in compliance with the government at all costs.
Employers are also required to ensure that employees’ workplace remains safe for all staff members. This also concerns customers and the general public. As a business owner, you must make sure that your business does not create any health or safety problems for anyone.
It is the business owner’s prerogative to choose to offer more benefits to his employees. However, all employer obligations stated above follow Australian law. Not only do these ensure that your business does not get into trouble with the government, but these benefits will also give your employees more reasons to stay with you.
Find out how your business is faring in the employer’s obligations aspect by taking our TRUST Assessment. You can also contact myCEO to speak with a business coach about your concerns.