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Employing Someone New

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What should I know about when employing someone?

With the retrenchments caused by businesses closing during the coronavirus, many people are looking to find new places to work. Some involve retraining and other lifestyle changes.

We have seen news reports of flight attendants using their organisational skills to work in grocery supplies or pilots working on farms learning how to use harvesting equipment. 

As an employer what should you look for in a new employee?

Let’s look at an example. You are a landscaper whose business has improved during the pandemic because people are staying home and making improvements on the family home to enhance their work and leisure time.

How do you go about employing someone to assist you?


Define the Job: Employment Terms 

It is important to define the role of the future employee, as this will guide you in choosing the type of employment contract suitable for your business.

Do you need someone while some concurrent jobs are on foot, or is your business expanding overall? This is especially important in the current coronavirus. 

Full-time Employee or Contractor? 

If you employ someone full-time you must meet obligations to pay an appropriate wage, any over-time entitlements, superannuation, Pay as you Go tax (PAYG) as well as sick leave and holiday pay. You must report all payments to the ATO or you can face penalty.

A contractor is essentially running their own business so you do not have the same obligations. Contractors will provide their own equipment and work for the term of the contract. They may however, charge at a higher rate because of this. 

If your business is well-established, you already have equipment. Would you need more equipment across the multiple sites you are landscaping? You would need to do a cost comparison to see whether a contractor, part-time, casual or full-time employee works best for you.  

List the Duties

What skills will your future employee need?

  • To drive a car?

  • To operate excavating machinery?

  • To supervise other employees at job sites in your absence?

  • To manage deliveries or do pick-up/deliveries themselves?

Insurances

You must keep insurances up-to-date to cover your liability in case of accident to your employee, to other employees and the public.

  • 3rd party insurance, compulsory as the employee will be driving a car;

  • Compulsory Workers Compensation Insurance; and

  • Public liability insurance if operating excavating equipment results in harm to the public.


Employment Contract


An employment contract sets out the rights and responsibilities of both the employee and employer. Legal minimum provisions must be met as set out in the National Employment Standards (NES). 

The contract should clearly define the role, the hours, the working conditions and also the employee’s guarantees and job qualifications.

This avoids conflict about over-time and also builds a good working relationship so you do not have the cost of retraining a new employee.

It is a good idea to also agree on onsite training and educational opportunities with the employee. Making clear the standards expected, stating the goals and anticipated workloads can be detailed in a regime of weekly meetings to ensure work is on track.

There should also be clauses about termination. If employees want to move on and set up their own business you should also include a restraint of trade. This could stop them taking on clients in your area for 2 years to protect your business.


Employee Warranties

When interviewing prospective employees, it is important to sight references, certificates, driver’s licences and qualifications. This is essential when the employee will be operating excavating equipment. There are specific educational certificates for supervisory roles, which are important when you will be absent at various times and need to be confident of the employee’s ability to maintain the role professionally and safely.


Work Health and Safety (WHS)

You are not only required to maintain compulsory insurances. You should consider all work-related hazards and risks that could expose you to liability.

Health issues specific to your landscaping business include:

  • Contamination from manure, potting mix, dust;

  • Hazardous chemicals and pesticides;

  • Injury from equipment both small tools, cutting equipment and large excavators;

  • Accidents when driving cars and/or trucks; and

  • Injury when unloading from deliveries.


Documented Emergency Procedure


Each site must have a set of procedures in place, which outline what to do in an emergency, emergency contact list and phone numbers as well as listing who has delegated authority to implement this. Base each section on the simple diagram above and add photographs of your equipment to show each step.

Keep a record of employee induction and training. Keep a diary of accidents so that you can complete the compulsory Incident Report. All serious incidents must be reported to SafeWork Australia. During the coronavirus, compulsory temperature checks are required of anyone entering the work site.

You must keep a register of hazardous chemicals as well as proof of safety testing of equipment and provide protective gear.


The Way Ahead

  1. Decide whether full-time or casual/contractor;

  2. Decide whether you can afford employee entitlements;

  3. Agree with employee on contract terms;

  4. Establish and maintain records and documentation of all payments including insurances;

  5. Establish and maintain protocols and procedures about training, accidents, potential hazards and WHS; and

  6. Once decided, make employee part of the team to ensure work achieves standards and you have good working relationships across all sites.

This is an outline of what is involved when employing someone. 

You can apply these ideas in a café, in a local grocery store or in the office of a medical supplier.

Please do not hesitate to contact us if you decide to go ahead.

Family Business: Sole Trader, Partnership, Company or Trust?

Dependent on how you have arranged your business there can also be liabilities and tax implications if you decide to expand the business and involve family members.

These can also arise if you and your partner separate and need to divide the property of the parties to achieve a settlement.


It is therefore important that you consult a lawyer before you finalise any agreements so that you can make an informed decision which will minimise any complications at a later date.

This article is for information only and is not legal advice.


David H. Cohen & Co