Bringing staff on board is exciting, but it also comes with real legal responsibilities. Whether you’re welcoming your very first hire or growing an established team, knowing your obligations under Australian employment law not only protects your workers, but also your business.

As advisors who work closely with business owners building their teams, we’ve got the experience to guide you. Here’s a practical, no-frills overview of the key obligations every employer in Australia needs to know.

1. Follow National Employment Standards (NES)

The NES outlines 11 minimum entitlements that apply to all employees in the national workplace relations system. These include responsibilities relating to:

• Maximum weekly hours of work
• Requests for flexible working arrangements
• Parental, annual, and personal leave
• Public holidays
• Notice of termination and redundancy pay‎

‎ ‎

Even if you have awards, enterprise agreements, or contracts in place, the NES still sets the baseline.

2. Pay the Right Wages

Pay isn’t just about the base rate. You need to make sure employees are getting:

• At least the minimum wage (or the relevant award/enterprise agreement rate)
• Correct penalty rates, overtime, and allowances
• Payslips within one business day of payday
• Super contributions at the correct rate (12% from July 2025)

‎ ‎

Underpayment isn’t just bad for morale; it’s illegal. Wage theft laws mean mistakes can lead to significant fines and reputational damage.

3. Create a Safe, Fair, and Respectful Workplace

As an employer, you have a legal and moral duty to create a workplace that is:

• Safe: Follow WHS laws, identify hazards, and take steps to manage risks.
• Respectful: Prevent bullying, harassment, and discrimination.
• Supportive: Prioritise mental health and wellbeing.

‎ ‎

Some industries also require mandatory health and safety training or appointing representatives to oversee these obligations. Check what applies to you.

4. Keep Accurate Records and Documentation

Employment records aren’t just admin, but also a legal requirement. Keep details on:

• Time worked
• Wages paid
• Leave entitlements
• Superannuation contributions
• Tax and other deductions

‎ ‎

You must hold these for at least seven years and be ready to produce them if Fair Work asks.

5. Understand Awards and Agreements

Most employees are covered by a Modern Award that sets out minimum pay rates and conditions. Some workplaces have an enterprise agreement, which must still meet or exceed the NES we mentioned before. Misclassifying an employee can lead to back-pay claims, so it’s worth double-checking.

6. Stay on Top of Tax and Super

Your payroll responsibilities include:

• Registering for PAYG withholding and deducting the right amount of tax
• Reporting through Single Touch Payroll (STP)
• Paying superannuation on time and to the correct fund

‎ ‎

Tax and super mistakes can mean fines, interest charges, and even scrutiny from the ATO — not to mention they can directly affect your employees’ finances and trust in your business.

7. Follow the Fair Work Act

The Fair Work Act 2009 is the backbone of Australian employment law, designed to ensure a fair and productive workplace for all employees. Some of the things it protects against are unfair dismissal and unlawful discrimination. As an employer, you must:

• Use correct processes for hiring, managing, and ending employment
• Give fair notice and follow due process before termination
• Avoid discrimination based on age, gender, race, disability, religion, or other protected attributes

‎ ‎

It’s important to remember that employment laws in Australia can change. Keeping up to date is the best way to protect your business and stay compliant, as well as maintain a positive working environment for your team. Review your policies and contracts regularly, and get advice if you’re unsure.

Helpful resources for Victorian Business Owners:

• Fair Work Ombudsman
• Australian Taxation Office (ATO)
• WorkSafe Victoria
• Business Victoria – Staff & HR