Things to think about when operating a business with employees
Nov 26, 2019As an employer, it is important that when you hire new employees, and as their employment changes, you set out clearly – and in writing – your expectations of them, and their responsibilities. Not only will this assist in managing expectations, but it may be important to clarify each party’s obligations should a dispute arise during the course of their employment, or after termination. Making sure you have well prepared documents is key in protecting yourself and your employees.
What about policies and procedures?
We regularly see companies and individuals who, having already operated their business for some time, decide to tighten up their employment procedures and office policies. This may be by establishing consistent employment agreements, work place policies, or trading terms and conditions. It is not unusual for employers to take an attitude of, “we’ll deal with it if it comes up”. These kinds of documents are an important first step in establishing your organisation’s culture and also managing your liability and risk. If you intend to change these documents as your business develops, make sure that all employees are aware of changes, and ensure that you have the ability to change these documents under your employment agreements.
James Kaufman v Jones Lang LaSalle (Vic) Pty Ltd T/A JLL [2017] FWC 2623
Issues around business and employee management have been highlighted in a recent Fair Work Commission decision (‘Kaufman’). This decision relates to an unfair dismissal and highlights many practical issues for businesses and employers, whether they are small or large.
In Kaufman it was clear that as the employer’s business evolved, so too had their employment practices and the documentation that was provided to new employees. However, these documents had not been provided to old employees and therefore the employer could not rely on them when establishing expectations and obligations with those old employees.
Further, as the applicant employee’s responsibilities had increased, the employer had not followed clear processes in terms of providing documents to that employee which set out their obligations. Instead, the employer relied more generally on documents that had been provided to other employees, and what the general expectations were for the role occupied by the applicant employee.
This case has demonstrated that a general implication of what your employee’s responsibilities are may not be enough for either the employee or the employer to rely on in the event of a dispute.
Contact the Shire Legal team if you have any questions.
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