You’re an experienced HR professional from a large US-based company. You’ve just been put in charge of setting up a small satellite office in Australia. It should be a piece of cake, right?
After all, the US is one of the most litigious countries in the world. You’ve dealt with employment contracts, compliance audits, federal regulations and employee complaints. How hard can it be in a smaller country like Australia?
But then the questions start piling up:
- What’s a ‘modern award’?
- Why are you being asked to pay penalty rates on weekends?
- Do we have to pay parental leave?
- What do you mean you can’t terminate someone ‘at will’?
Welcome to Australian employment law!
To be fair, even the most experienced Australian HR professionals find our workplace laws challenging to navigate. In addition to both Commonwealth and State legislation, there is a complex modern award system that differs significantly from what you’re used to. In addition, our laws are often amended which can make it difficult to keep on top of. If not managed properly, your business could be at risk of expensive claims.
Managing requests for flexible work and parental leave can be particularly problematic. If not dealt with properly you can leave yourself open to claims under General Protection provisions of the Fair Work Act 2009 (Cth) or claims for discrimination in other forums such as the Australian Human Rights Commission.
Australia also has state-based workplace health and safety laws and injured employees may be entitled to apply for workers compensation in addition to any employment rights they have. Depending on the applicable state, an employee dispute that is not managed properly can lead to a claim for psychological injury. This can disrupt your business operations, as workers who are on approved workers’ compensation are protected for a period from dismissal by law. In addition, a claim is likely to have an impact on your insurance premiums.
We Advise Employers and Employees – So We See Both Sides
At TLB Law & Co, we’re experienced employment lawyers who advise both large corporates and SMEs on their workplace obligations. We also assist employees with complaints and have successfully assisted employees to claim hundreds of thousands of dollars from employers. We see firsthand where things go wrong and how quickly a small oversight can escalate.
Common issues we encounter is overseas-based companies, especially from the US, unintentionally breaching Australian workplace laws due to unfamiliarity with laws such as:
- The Fair Work Act;
- State based Long Service Leave legislation;
- Obligations under work health and safety legislation;
- Modern awards; and
- Minimum entitlements like penalty rates, overtime, and leave loading.
Even if your Australian team is small, your business is subject to local laws and claims being made, as well as enforcement action by the Fair Work Ombudsman.
Common Mistakes We See from Global Employers
- Assuming ‘at-will’ employment applies in Australia – it doesn’t.
- Managing under-performance or even serious misconduct in a way that puts the business at risk.
- Not dealing with employee enquiries and complaints appropriately and in accordance with obligations under the Fair Work Act.
- Not implementing proper payroll and understanding the implications for underpayment of employee entitlements.
These mistakes can lead to underpayments, employee complaints and claims, civil penalties, and in the most egregious cases criminal charges, especially now that intentional underpayment is a criminal offence in Australia.
What You Should Do
If you’re a global employer setting up or managing operations in Australia:
- Review your employment contracts and payroll systems.
- Where relevant, seek local legal advice to interpret awards and entitlements or employee rights such as requests for flexible working or parental leave.
- Act quickly if underpayments are identified.
- Train offshore HR teams on Australian laws and what to look out for.
Need Help Navigating Australian Employment Law?
TLB Law & Co works with international businesses to ensure their Australian operations are compliant, protected, and well-advised. Whether you’re expanding into Australia or reviewing existing practices, we can help.
Why TLB Law & Co
TLB Law & Co is a boutique Australian employment law firm trusted by both multinational corporations and SMEs. We are highly experienced, easy to deal with, and we do not charge like the big end of town. We offer agile, commercial, and cost-effective legal support for businesses operating in Australia, including those expanding from overseas. Whether you need help navigating the Fair Work Act, drafting contracts, interpreting modern awards, or resolving workplace disputes, we can be your local partner in Australian employment law and your legal requirements.
Call us on 1300 80 67 80 or if calling from overseas +61 2 9191 9856, or touch base through our contact form here, to book in a confidential consultation today.