Crafting Your HR Compliance Plan

Staying ahead of legislative changes is more critical than ever right now. With the introduction of sweeping updates to workplace laws, compliance is not just a box to tick—it’s a safeguard for your business’s future.

Let’s explore why compliance is essential, unpack the components of a robust protection and compliance plan, and provide actionable steps to create one tailored to your business.

Why Compliance Matters More Than Ever

Over the past few years, Australia’s employment legislation has undergone an unprecedented transformation.

Reforms such as the Secure Jobs, Better Pay Act and the Closing the Loopholes Act have redefined employer obligations, particularly in areas like casual employment, contractors, pay secrecy clauses, and employee rights to disconnect from work, just to name some of the most spoken about changes.

The stakes are higher than ever. From January 2025, intentional underpayment becomes a criminal offence, emphasising the risks of non-compliance. Penalties now extend to individuals, which means business owners and managers can face personal fines or even criminal proceedings.

The Fair Work Commission has also made it clear that ignorance is no longer an excuse—employers are expected to fully understand and adhere to their obligations. Not knowing is no longer a justifiable defence – you have an obligation to self educate when it comes to your compliance with our Industrial Relations and HR laws, and how they apply to employees in your business.

Building a Comprehensive Protection and Compliance Plan

A compliance plan ensures your business is not only meeting its legal obligations but also protecting itself from costly mistakes.

Here are the essential components of a strong compliance strategy:

1. Understand the Fair Work Act and National Employment Standards
   These foundational laws govern entitlements like maximum weekly hours, leave, and termination. Recent updates have changed the playing field, so even if you were compliant a year ago, it’s time for a review.
2. Review Modern Awards
   Modern awards apply to most Australian workplaces, and each underwent updates in 2024. Changes include the introduction of a right to disconnect, which must be implemented by August 2025 for small businesses. Make sure you’re applying the correct awards to your employees and adhering to their specific requirements.
3. Review and Update Employment Contracts
   Employment contracts are more than just legal documents—they’re tools to protect your business. Ensure your contracts are free of outdated clauses, like pay secrecy agreements, and include critical protections such as intellectual property, secondary employment, and restraint of trade clauses.
4. Consider Flexibility Agreements
   Individual Flexibility Agreements (IFAs) and Annualised Wage Agreements (AWA’s) are tools to tailor award conditions to your business’s needs. However, these documents must meet legal standards, ensuring employees are better off overall.
5. Update Policies and Procedures
   Policies provide clarity and consistency in your business operations. Key areas to review include leave management, flexible work arrangements, and workplace safety. Outdated policies can expose your business to risk, so schedule regular updates.
6. Address Contractor and Casual Employee Compliance
   Misclassifying contractors or casual employees is a common mistake with serious consequences. Legislative changes now impose stricter requirements around contractor engagement and casual conversion pathways. Conduct a thorough review of your arrangements to ensure compliance.
7. Right to Disconnect
   Employees now have a legal right to disconnect from work outside of agreed hours. This clause requires not just compliance but a cultural shift within organisations. Develop a policy and communicate it clearly to your team.

Creating a Practical Compliance To-Do List

Compliance may seem daunting, but breaking it into actionable steps makes it manageable. Here’s how to approach it:

1. Start with a Self-Audit
   Begin with the basics:
• Are you meeting the requirements of the Fair Work Act and National Employment Standards?
• Do you know which modern awards apply to your employees?
• Are your contracts, policies, and procedures up to date?

Identify gaps and prioritise actions that pose the most immediate risks to your business.

1. Revise Documentation
   Ensure your employment contracts reflect the latest legislative changes. Use Individual Flexibility Agreements or annualised wage agreements where applicable. Update policies and processes to provide clarity and protection.

1. Engage Experts
   Some compliance tasks, like determining award coverage or drafting flexibility agreements, may require professional advice. Investing in expertise now can save your business from costly mistakes later.

1. Train Your Team
   Policies are only effective if your employees understand them. Schedule training sessions to familiarise your team with new procedures, particularly for changes like the right to disconnect.

1. Plan for Ongoing Compliance
   Make compliance a regular part of your business operations. Set calendar reminders for annual reviews of policies, contracts, and awards. Staying proactive reduces the risk of falling behind.

Why Proactive Compliance Is Good Business

Beyond avoiding fines and penalties, a proactive approach to compliance builds trust within your team. Employees value transparency and fair treatment, which are at the heart of good compliance practices.

A well-structured workplace with clear policies and updated contracts also improves productivity, reduces turnover, and creates a positive organisational culture.

Looking Ahead

As 2025 approaches, the pace of change in workplace legislation shows no signs of slowing. Taking the time now to implement a thorough protection and compliance plan ensures your business is well-positioned for success.

Start with an audit, seek expert advice if needed, and commit to regular reviews. Compliance may seem like a daunting task, but it’s an investment in the longevity and health of your business.

An Invitation

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