Even the most well-run business can make errors when it comes to HR compliance. From outdated contracts to missing records, small mistakes can quickly become costly if they lead to compliance breaches or Fair Work claims.
Here are some of the most common HR mistakes employers make and how to fix them to keep your business compliant.
1. Not Paying Staff Correctly
Pay errors are one of the most common compliance issues businesses face. Even minor mistakes in pay rates, overtime or allowances can lead to significant back-payments and penalties.
Solution: Check the correct Award, classification and pay rate for each employee, and review them regularly, especially when roles or duties change. Minimum wage rates are typically updated annually on 1 July, but Award conditions such as allowances, penalty rates and classifications can change at other times. Staying across these updates helps you protect your business and helps maintain trust with your team.
Furthermore, in line with the recent Federal Court decision, ensure an employee is better off overall each and every pay period.
2. Poor Record-Keeping
Inadequate time and wage records are one of the most common compliance breaches identified by Fair Work. Without accurate records, it’s almost impossible to defend underpayment claims.
Solution: Keep clear, up-to-date records of hours worked, pay rates, leave and employment details for every worker. Consistent record-keeping not only prevents compliance issues but also helps you manage your workforce more effectively. The recent Federal Court decision highlighted the importance of having the appropriate records readily accessible.
3. Skipping Proper Onboarding
Starting a new employee without a structured induction can lead to confusion, inconsistent expectations, and safety risks down the track.
Solution: Use a consistent onboarding process that covers organisational structure, policies, and performance expectations. Make sure new employees understand their role and who to go to for support.
4. Avoiding Difficult Conversations
Managers often delay addressing performance or conduct issues because it is uncomfortable, but ignoring problems can escalate them and lead to formal complaints or Fair Work claims.
Solution: Address issues early, clearly, and respectfully. Document conversations and provide support or improvement plans. Having a fair and transparent process helps protect both the employee and your business.
5. Overlooking Employee Wellbeing
High workloads, unclear expectations, and poor communication can quickly lead to stress and burnout which can impact performance, morale, and retention. When wellbeing is ignored, even the best HR systems can start to fail.
Solution: Promote a healthy balance between performance and workload. Encourage open communication, recognise achievements, and make sure managers are equipped to check in regularly and support their teams effectively.
HR compliance doesn’t need to be complicated, it just needs to be consistent. By tightening up these areas now, you’ll save time, reduce risk, and build a more confident and compliant workplace.
At ProcessWorx, we are committed to helping businesses strengthen their HR compliance. If you’d like to learn how ProcessWorx can assist with Human Resources or Work Health & Safety, please contact us on 08 9316 9896 or enquiries@processworx.com.au. Also watch an Introduction to ProcessWorx.
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