PRESS RELEASE: Liability and compliance: Essential last-minute tips businesses should know before 1 July

– Written by a principal at national law firm McCabe Curwood

Only a few days stand between businesses and the next financial year. The countdown is on for last-minute tax tips, and new office equipment purchases, before the clock strikes midnight on Wednesday.

But with the added strains of the end of financial year, and regular legislative changes that can be difficult to keep track of, there is an area many businesses will unknowingly overlook.

Legal exposure.

To avoid a dreaded knock on the door by the ATO, business owners and directors must review legal compliance now.

Here are three essential last-minute tips to know before Thursday.

1. Revisit ‘working from home’ policies

COVID-19 left many of us working from home. While changes to workplace laws provided greater flexibility for businesses during the height of the pandemic, they have now largely expired.

This means that if you are one of the many businesses that will continue working from home arrangements, you must update the policies and contractual terms in place to ensure they are compliant with current employment and Workplace Health and Safety (WHS) regulations.

Employers may be aware that this includes a duty to implement measures that help ensure the physical safety of an employee working from home.

However, it could come as a surprise that this responsibility also extends to managing psychological risks.

There are ways that businesses can help mitigate these risks. For example, frequent communication, and providing resources that support the mental health and wellbeing of employees.

2. Review your compliance with workplace laws

The last few weeks have seen a number of changes to workplace laws that you must review, including the 2.5 percent minimum wage increase. Have you put the processes in place to make this transition on 1 July?

The new 10 percent compulsory superannuation rate will also come into effect. Where an employee’s remuneration is expressed as a base salary exclusive of superannuation, the increase to the superannuation guarantee will come at a cost to employers. Failure to pay the increased super amount can see businesses investigated by the ATO, so it is essential to get this in order now.

Looking a little further back, there were a raft of updated modern awards issued last year, and reforms made to casual employment. Have you successfully integrated new processes and operations to meet these legislative changes?

Employers should also issue Casual Employment Information Statements, and check their casual contracts and casual conversion obligations.

3. Take the necessary steps to protect employees and avoid personal liability

Finally, directors and managers are increasingly at risk of being personally accountable for incidents in the workplace.

The tragic death of a 25-year-old worker in Western Australia saw his employer sentenced to two years in prison last month for gross negligence. Penalties facing directors and managers in employment and WHS matters are tightening. To protect employees, you must invest in necessary processes and training. Doing this will also safeguard employers from personal liability.

Failure to take reasonable steps to protect employees also extends to sexual harassment in the workplace. Employers have a duty to not only respond appropriately to reports of sexual assault, but assess the day-to-day culture, training, policies and processes of a business. If you have not reviewed these in some time, it should be a priority.

Tim McDonald is head principal in McCabe Curwood’s Employment group. His practice includes employment and industrial law, work health and safety, discrimination, bullying and harassment, management of injured workers and termination of employment. McCabe Curwood is a national Australian law firm, servicing clients in all areas of business.