INDUSTRIAL RELATIONS

Onboarding employees

Alexandra Sinkis Employment and Industrial Relations Advisor

The MBV Employment and Industrial Relations (EIR) team regularly assists members with a wide range of matters concerning the employment lifecycle.

The onboarding process for new employees is a popular enquiry we receive.

In the New Year, you may be looking at putting on an apprentice or someone more experienced.

Whatever the role, the onboarding process can be daunting, especially if you are a small business.

The following points guide you through some crucial matters to consider when engaging an employee.

They will assist you in starting the employment relationship on the right foot and help prevent future issues. Have a written employment agreement

Implementing a written employment agreement is very important when hiring a new employee.

They outline the terms and conditions of the employment but also set clear obligations and expectations for the employee.

We recommend that employees covered by a modern award or enterprise agreement be provided with a short form letter of engagement.

This is because the applicable instrument already covers many aspects of the employment relationship.

We generally recommend having a more detailed employment contract for more senior employees.

Alongside the written agreement, we recommend you provide the employee with a position description.

This will provide the employee with a written record of their role, duties and requirements at the company.

The EIR team can provide you with template employment agreements and position descriptions.

Remuneration

Before offering employment, discussing remuneration with the prospective employee may be worthwhile.

Both parties can voice their expectations on the wage or salary.

This will mitigate any potential disputes about pay.

You must pay the employee at least the minimum rate in any applicable modern award or enterprise agreement.

You will need to pay at least the national minimum wage if there is no applicable instrument.

We can advise you on the minimum entitlements and provide resources that summarise these rates.

We encourage you to confirm any agreed remuneration in writing to the employee.

In practice, this is outlined in an employment contract or letter of engagement.

Superannuation

with the ATO superannuation choice form.

This will allow the employee to nominate their superannuation fund.

You will need to make superannuation contributions to this account.

The current minimum superannuation contribution is 10.5 per cent of ordinary time earnings (OTE). Please be aware the contribution percentage is set to increase by 0.5 per cent every year until it reaches 12 per cent from 1 July 2025.

CoINVEST

If you’re hiring a construction worker, don’t forget to register them with CoINVEST, the industry’s compulsory portable long-service leave scheme in Victoria.

It is a legal obligation for businesses and workers in the construction industry in Victoria.

The scheme allows construction workers to move between employers and to continue their service period towards their long service leave.

WorkCover insurance

If you have employees working in Victoria, you must register and have adequate WorkCover insurance.

WorkCover insurance covers employers if their employees become injured or ill because of their work.

If you fail to register for WorkCover, you may face significant penalties.

Medical assessment

Before you engage a prospective employee, you may wish to have them undergo a medical assessment.

Provided the individual consents to undergo an assessment, you will gain an understanding of any pre-existing injuries or illnesses.

This is particularly important for construction workers due to the nature of their work.

The pre-employment medical report may be used as supporting documentation should a WorkCover claim be made.

Other points for consideration

You will need to provide the Fair Work Information Statement to new employees before or as soon as they start work.

If they are a casual employee, they will also need to be given the Casual Information Statement.

You will be required to obtain the employee’s tax file number (TFN) for taxation purposes.

If they do not already have a TFN, they will need to register for one through the ATO.

MBV’s EIR team is here to help you navigate the process of engaging a new employee. We have a range of resources to assist you with the task of hiring someone.

Don’t hesitate to contact us if you have questions about the onboarding process on (03) 9411 4555.

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