What are employer obligations in Australia?
Before hiring a new employee, employers need to make sure they know their rights, responsibilities and obligations – whether they relate to pay, minimum terms and conditions, tax or superannuation.
Similarly, employees should familiarise themselves with their workplace rights and obligations so they can make sure they are being treated fairly at work.
Employee entitlements vary depending on the type of employment: full-time, part-time or casual.
There are two systems of employment law operating for the private sector in WA, the state industrial relations system and the national fair work system. Which system covers a particular employer depends on the business structure. The two systems have different employment rights and obligations.
The state system covers private sector businesses and their employees that operate as:
- sole traders.
- unincorporated partnerships where none of the partners in the business are Pty Ltd entities.
- unincorporated trust arrangements where none of the trustees or other entities in the trust arrangement are Pty Ltd entities.
- incorporated associations and other not-for-profit organisations (including sporting clubs and school P&C’s) that are not trading or financial corporations.
The National System covers employers who are:
- Pty Ltd businesses that are trading or financial corporations.
- incorporated partnerships where one or more of the partners in the business is a Pty Ltd entity.
- incorporated trust arrangements where one or more of the trustees or other entities in the trust arrangement is a Pty Ltd entity.
- incorporated associations and other not-for-profit organisations that are trading or financial corporations.
If you are not sure which system covers your business, you can contact Wageline on 1300 655 266 and provide the name of the business and the ABN and Wageline can assist with a business search over the phone.
The fairwork site also has more information on employer obligations: https://www.fairwork.gov.au/starting-employment
Superannuation Guarantee
What is the Superannuation Guarantee?
The Superannuation Guarantee is a compulsory payment, eligible employees are entitled to have paid into their superfunds.
Under the superannuation guarantee, employers have to pay superannuation contributions at the statutory rate of an employee’s ordinary time earnings when an employee is:
- over 18 years, or
- under 18 years and works over 30 hours a week
If eligible, the super guarantee applies to all types of employees including:
- full-time employees
- part-time employees
- casual employees.
Temporary residents are also eligible for super.
The super guarantee rate is currently 11%. It will increase by 0.5% annually until it reaches 12% in 2025.
Super must be paid at least every 3 months and into the employee’s nominated account.
The ATO can give advice and assistance on superannuation issues, including on the super guarantee. Find out more at:
When Superannuation Hasn’t Been Paid
Employers have an obligation to pay super at a minimum of four times a year in line with the ATO’s deadlines. If an employer fails to pay super on time they must file a super guarantee charge statement and pay interest on the overdue amounts.
For further information about what an employer must do if they haven’t met their superannuation obligations go to ATO – Super Guarantee Charge (SGC) Statement
Stapled Super Funds
What is a stapled superfund?
Stapled super is an existing super account that is linked, ‘or stapled” to an individual employee so that it follows them as they change jobs. The change aims to stop new super accounts from being opened every time an employee starts a new job.
Super stapling was introduced by the Federal Government in 2021 to address the issue of individual employees having multiple super accounts which results in additional fees and insurance premiums and erodes retirement savings.
Most employers from 1 November 2021, may have an extra step to take to comply with choice of fund rules if:
- they have new employees start, and
- the employees do not choose a super fund.
If a superfund already exists for the employee, the employer is required to pay super into this account. Employers can no longer set up default superfunds for employees with existing accounts.
Instead, the employer may now have to request their new employees’ stapled super fund’ details from the ATO.