A Beginners Guide: National Employment Standards

​I’ve just returned from a one-day intensive course all about Fair Work legislation.  What an eye opening experience.  Did you know that in Australia we have the most complex employment laws in the world? 
Working out what employees are entitled to, which award they are covered under and how much to pay them can be a convoluted process.  It is essential to get this right because failure to comply with the law can lead to big fines.  Up to $54,000 per breach if you’re caught doing the wrong thing.  No wonder payroll and employee management causes so much stress for business owners!
 
The best way to avoid these pitfalls is to be educated.  Let’s start with the National Employment standards.  These are the 10 minimum entitlements that apply to all Australian employees.  Every employer must comply with these standards and they cover the following areas:
 

1. Maximum of 38 hour week for full time employees.  Employees cannot be required to work additional hours if the request is not “reasonable” or if the employees’ refusal to work additional hours is reasonable in the circumstances.
2. Provision for 12 months of unpaid parental leave. This also applies to casual workers if there is a reasonable expectation of continuing employment.  Eligible employees are those who have completed 12 months of service at the time of birth or adoption. The maximum period of unpaid leave is two years.
3. Personal and Carer’s leave & Compassionate leave.  Full time employees accrue 10 days paid personal/carers leave per year.  Personal leave applies if an employee is ill or injured and Carer’s leave if a member of their immediate family is sick or injured.  Part time employees are also covered on a pro rata basis.  Compassionate leave of 2 days per occasions, covers events where a member of an employees’ immediate family suffers from a life threatening illness or injury or has passed away.  Compassionate leave is paid leave for full time and part time employees and unpaid for casual employees.
4. Long service leave.  Entitlement to long service leave is covered by the relevant state legislation.  In NSW, full time, part time and casual employees who have completed at least 10 years of continuous service with an employer are entitled to long service leave.
5. Notice and redundancy pay.  Employers are required to give set amount of notice to employees upon termination of employment unless they are casuals, hired under a fixed term arrangement or are being dismissed for ‘serious misconduct’.  The amount of notice depends on years of continual service and the age of the employee.   Notice period for employees to their employer is covered under the relevant award.   An employee is generally entitled to redundancy pay if they are made redundant except in circumstances where employment is for a fixed period or contingent on another contract, if the employer has less than 15 employees or if the employee has not completed 12 months of service.
6. Entitlement for an employee to request flexible working arrangements.  This entitlement only applies to some employees e.g. has school aged children or is a carer. The employee must have completed 12 months of service and the employer has the right to refuse the request on “reasonable grounds”.  Examples of flexible working arrangements include, changes to working hours, working days or locations.
7. Annual leave.  Full time workers are entitled to four weeks per year (but check your relevant award which may provide for more generous entitlements).  Part time employees’ entitlement is on a pro-rata basis.  Annual leave is paid on an employees’ base pay rate for ordinary hours.  Leave loading if applicable under an award payable on top when leave is taken.  Any unused annual leave is paid out at the end of employment.
8. Leave entitlements for jury service and community service.  Jury leave applies when an employee is required to serve on a jury.  Employers are required to pay “make up” pay for the first 10 days of service.  Entitlement to community service leave is unpaid leave for those employees who are volunteers with a recognised emergency management body and are required to assist with an emergency or disaster situation.
9. Public holidays.  Public holidays are different across states so it is important to check which days apply.  Full time and part time employees who are normally required to work on a public holiday they are entitled to payment at their base pay rate.  Different rules apply to situations where an employee works on a public holiday, awards can provide for special entitlements in addition to their base pay.
10. Fair Work Information statement.  All employers must provide a copy of the Fair Work Information Statement which covers all the above points to each new employee when they start work. 

 
These 10 entitlements cover the basic entitlements for employees.  For more information and to download your copy of the Fair Work Information statement visit www.fairwork.gov.au.
 
The majority of workers are also covered by a Modern Award.  See A Beginners Guide: Modern Awards for the next instalment.

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