What do I need to consider when setting pay rates? In Australia, most job are covered under a modern award. A modern award is an industrial instrument that sets minimum pay rates and employment conditions for employees in particular industries or occupations.
Within each award are classifications (referred to as levels or grades) that apply to an employee based on the work they perform, their skills, qualifications, experience, and level of responsibility.
For example, a café owner determines that the Restaurant Award applies to their employees. They then need to assess the classification of three different roles: a junior casual food runner, a barista, and a qualified cook. All three may be covered by the Restaurant Award, but they’ll sit at different classification levels – each with different minimum pay rates and entitlements.
You also need to consider conditions relevant to the industry or occupation. Your employees may be entitled to allowances, loadings, penalty rates and overtime all specific to that industry. If any of these entitlements apply, you must pay these to the employee. Many employers flatten their pay rates by determining a rate that accommodates these entitlements.
How do I know what award and classification applies to my employee? To choose the right award and classification, you need to look at the kind of work your employee performs, their duties, and the nature of your business. Once you’ve identified the correct award, you then need to determine the employee’s classification level based on their duties, skills, experience and level of responsibility. You’re trying to determine the best fit.
How often should I review employee pay rates? The Fair Work Commission reviews the modern award base pay rates and entitlements annually, with changes taking effect in July. It’s a good idea to review employee pay rates at least once a year around this time. However, you should also review them whenever there is a change that could affect an employee’s classification, such as changes to their duties, award rates or workplace arrangements.
When reviewing pay rates, don’t just look at the hourly rate. Check that:
the correct award still applies
employees are classified correctly
allowances, penalty rates and overtime are being applied correctly
employees on flat rates or annualised salaries remain better off overall than they would be under the relevant award.
Can I say no to a request for flexible work? Yes, but you’ll need a genuine business reason.
Not every flexible work arrangement will be practical or suitable for every business. If approving the request would have a significant impact on customer service, productivity, team coverage, workplace safety, or result in costs the business can’t reasonably absorb, you may be able to refuse it.
For business owners, it’s often about balancing the needs of your employee with the realities of running your business. What works in one workplace may not work in another, and that’s okay.
The key is to approach it as a conversation rather than a compliance exercise. Taking the time to listen, explore options and communicate openly can help you find a practical solution and reduce the risk of misunderstandings or disputes.
If you do need to say no, base your decision on the needs of the business rather than personal preference. If the arrangement would create real operational challenges, it’s reasonable to explain those concerns and why the request can’t be accommodated.
What are an employer’s obligations regarding flexible work requests? When an eligible employee requests flexible work, employers have a few key obligations: You need to genuinely consider the request, discuss it with the employee, and provide a written response within 21 days.
If the arrangement won’t work as proposed, you’re also expected to consider whether there are alternative options that could meet the employee’s needs while still working for the business.
While you’re not required to approve every request, you can’t simply dismiss it out of hand. If you decide to say no, you’ll need to have reasonable business grounds and clearly explain your reasons.
Does flexible work always mean working from home? Not at all. Flexible work can take many forms, and working from home is just one option.
Depending on the employee’s circumstances and your business needs, flexible work might include changes to start and finish times, adjusted work hours, job sharing, compressed work weeks, changes to work patterns, or a mix of office and remote work.
For business owners and managers, it’s helpful to think about the outcome the employee is trying to achieve rather than focusing on a specific arrangement. Sometimes there may be several ways to provide flexibility while still meeting operational needs of your business.
Who can request flexible working arrangements? Most employees can ask for flexible work, but the Fair Work rules set some eligibility requirements. Generally, the employee needs to have been with you for at least 12 months (or be a long‑term casual working regular, ongoing hours). They also need a qualifying reason – such as caring responsibilities, disability, being 55 or over, pregnancy, or circumstances related to family and domestic violence (their own or someone they support in their household or immediate family).
What do I do if I think my employee isn’t genuinely sick? Let’s be honest, most business owners or managers have had this thought at some point. If something doesn’t seem right, try not to jump straight to the conclusion that the employee is doing the wrong thing. Instead, focus on what you know and follow your usual absence management process.
That might include asking for evidence of the absence if it’s required under your workplace policies or having a conversation if you’re noticing a pattern of repeated absences.
The important thing is to deal with the situation consistently and professionally. If you’re concerned about an employee’s attendance, a direct and respectful conversation is often the best place to start. It gives you an opportunity to discuss any concerns, clarify expectations, and understand whether there’s a pattern that needs to be addressed.
How much information can I ask for when an employee calls in sick? When an employee calls in sick, it’s okay to ask questions that help you manage the absence, such as how long they’re likely to be away and whether work needs to be covered. But you don’t need a detailed explanation of their medical condition.
If you’re unsure about the absence, you can ask for reasonable evidence, such as a medical certificate or statutory declaration. Having a clear process for reporting absences can also make these conversations easier for everyone.
What should I do if an employee has been on sick leave for a long time? Long-term absences can be challenging for everyone involved. While your employee may be dealing with a genuine illness or injury, you may also be managing the impact of an unfilled role, additional workload for the team, and uncertainty about what happens next.
The first step is to stay in touch. Regular communication can help you understand your employee’s situation, whether they’re likely to return to work, and whether any support or workplace adjustments may be needed.
Every situation is different, so it’s worth taking the time to understand the employee’s circumstances before deciding on the next steps.
In the case of a prolonged absence, focus on gathering the right information, understanding your obligations, and considering the needs of both your employee and your business before making any decisions. Under certain circumstances, employment may be terminated after a sufficiently long absence.
What should I do if an employee is accused of misconduct? When a concern is raised about your employee’s behaviour, it can be tempting to act quickly, especially if the issue has affected other team members or disrupted the workplace.
Before making any decisions, take the time to understand what has happened. The right approach will depend on the nature and seriousness of the allegation. Sometimes a conversation is enough to resolve an issue, while other situations may require a more formal investigation.
The key is to focus on the facts and make sure everyone involved has an opportunity to share their perspective. Taking a measured approach can help you make informed decisions and maintain trust in the process.
Do I need to formally investigate every complaint or allegation? Not necessarily.
Every workplace concern should be taken seriously, but that doesn’t mean every issue requires a formal investigation. In some cases, a conversation, coaching or mediation may be enough to address the situation.
A good place to start is by considering the nature of the concern and the impact it’s having on your employees and your workplace. Issues involving bullying, harassment, discrimination, safety, or potentially serious misconduct will often require a more structured response.
The important thing is to choose an approach that fits the circumstances and helps you understand what’s happened before deciding what to do next.
Can I dismiss an employee for misconduct? Potentially, but it’s important to understand the full picture before deciding on an outcome.
Not all misconduct is the same, and not every misconduct issue will justify dismissal. The seriousness of the conduct, the surrounding circumstances, and your employee’s response are all factors that may need to be considered.
For many business owners and managers, the challenge isn’t deciding whether a behaviour was appropriate, it’s determining the most appropriate response. Before taking disciplinary action, make sure you’ve gathered the relevant information and given your employee an opportunity to respond to the concerns raised.
The best outcome is one that is fair, reasonable and proportionate to the situation, while also supporting the standards and expectations of your business.
How do I know if a role is genuinely redundant? Redundancy is about the role, not the person.
If your business no longer needs a particular job to be done due to changes in operations, business priorities, technology, structure, or financial circumstances, the role may be genuinely redundant.
For many business owners and managers, redundancies arise because the business needs to adapt and operate differently than it has in the past. Before making any decisions, it’s worth being clear about what’s driving the change and why the role is no longer needed. Having a clear business rationale will help you make informed decisions and explain the changes to your employees.
Do I need to talk to my employee before making a role redundant? In most cases, yes.
While these conversations can be difficult, consulting with your employee is an important part of the process. It gives you an opportunity to explain the proposed changes, hear their feedback, and explore whether there are any alternatives that may help avoid or minimise the impact.
For many business owners and managers, redundancy decisions carry a significant sense of responsibility. In smaller businesses and regional communities especially, you’re often talking about people you’ve worked alongside for years, know personally, or who play an important role in your team.
That’s why consultation is about more than simply meeting your obligations. It’s an opportunity to have an open and respectful conversation about what’s changing in the business and what it means for the people affected.
Even when the business decision is unlikely to change, taking the time to communicate openly can make a challenging situation easier for everyone involved.
Do I have to offer another job before making someone redundant? Not necessarily, but before moving ahead with a redundancy, you do need to consider whether there are any suitable alternative roles available within your business.
For many business owners, this is one of the more difficult parts of the process. Often, the issue isn’t the employee or their contribution to the business. The challenge is that the role is no longer needed in its current form.
That doesn’t mean you need to create a new position where one doesn’t exist. In some businesses, particularly smaller ones, there may simply be no suitable alternative roles available. In others, redeployment may be an option worth exploring.
Every situation is different, but taking the time to consider the alternatives can help ensure you’ve explored all reasonable options before making a final decision.