Employee entitlements

All employees have the right to receive certain entitlements during the course of their employment, such as wages, leave and superannuation. Such entitlements include:

Contractor or employee?

As contractor relationships are common in the industry, it's often difficult to determine whether a worker is legally an employee or contractor. Just because a worker has an ABN, doesn't necessarily classify them as a contractor. Subcontracting arrangements are usually entered into with an entity such as a Pty Ltd business, a trust or a partnership. A good indication of a true subcontracting arrangement is when the entity can delegate the work to a person to perform. You should always have a written subcontract agreement that details the terms of service including delegation of work and commercial liability.

It’s illegal to misrepresent an employment relationship, under the Independent Contractors Act 2006. If you classify a worker as a contractor, but legally they’re an employee, you may be liable for unpaid benefits for the entire period they worked for you.

For help working out whether a worker is a contractor or employee, use this decision-making tool from the Australian Taxation Office.

National Employment Standards

All employees in the national workplace relations system are covered by the following 11 minimum National Employment Standards (NES), set out in the Fair Work Act 2009: 

• Maximum weekly hours (38 hours, plus reasonable overtime)
• Requests for flexible working arrangements
• Offers and requests to convert from casual to permanent employment
• Parental leave (Maximum of 24 months)
• Annual leave
• Personal/carers leave, compassionate leave and family domestic violence leave (paid)
• Community service (unpaid) and jury service (paid)
• Long service leave
• Public holidays
• Notice of termination and redundancy pay
• Receive a Fair Work Information Statement and Casual Employment Information Statement.

Casual employees are only entitled to:

• Offers and requests to convert from casual to permanent employment
• Paid and unpaid family domestic violence leave
• Unpaid carers leave
• Unpaid community service leave
• Receive a Fair Work Information Statement and Casual Employment Information Statement.

The standards can be negotiated but mustn't be reduced by any Awards, enterprise agreements or employment contracts that result in less favourable conditions for an employee.

Fair Work Information Statement

All new employees must be given a copy of the Fair Work Information Statement from the Fair Work website, when they begin their employment (or earlier).

Casual employees or permanent employees transitioning to casual must be issued a copy of the Casual Employment Information Statement when they begin their employment or have requested a conversion to casual.

WorkCover

As an employer, you should also be aware of your obligation to have compulsory workers' compensation insurance that covers injured workers for loss of capacity and income and medical expenses caused by a work-related injury or illness.