Employing Staff: An Overview of Your Responsibilities as an Employer


As an Employer, it is crucial for you to understand employment-related legislations and your obligations surrounding the engagement of people to work within your business (employing staff).

There are taxes, minimum pay, annual leave, maternity leave, superannuation and employee rights all covered by employment legislation and must be applied across your business for all employees.

While complying with your responsibilities is important so that your business stays on the right side of the law, it also ensures staff morale high is kept high and reduces staff turnover.

Happy Employees are productive Employees and this also serves to improve the overall image of your business in addition to ensuring smooth operations.

We are going to cover a range of topics in the coming weeks which we hope will answer many of the queries you have in relation to this area of your business.

Firstly, Employee or Contractor?

There can be some confusion regarding the status of an individual who carries out work for you, are they classified as an Employee or are they actually a contractor?  Are you going to be employing staff? or engaging Contractors?

Referencing our blog from August 2016 on the topic of Employees vs Subcontractors:

Generally, an individual would be classified as an Employee if they fall under your (the business owners) control, they are paid regularly for their work and they are accruing leave entitlements (sick, annual, long service, and so on).

Subcontractors are generally engaged in a Business to Business relationship.  They may be an individual, partnership, company or trust and has undertaken a contract for service, not a contract of service.  They generally have an ABN and do not normally work full time for a single business.

When considering outside help for tasks within your business, it’s important to understand the difference between employing a staff member or engaging a contractor, and the differences in renumeration for those individuals.

Our blog on Contractors v’s Employees provides in depth detail on the requirements for each scenario.

When employing staff, there are a number of facts that you need to be aware of, which we will be covering in more detail in the coming weeks:

  • Pay & Entitlements
  • Superannuation

Managing Payroll falls within the scope of services that we provide our Clients, please don’t hesitate to Contact Us if you’d like to discuss your Employer obligations further.