Direct employment 102

How do you know when a worker is an employee? You know this because you have considered the arrangement you have and want with your worker and you have run it through the ATO guidelines.

Now you need to define legally the relationship you want with your worker. A document which is created called an employment agreement is typical of direct employing, you will need to make application with the ATO to get a WPN. A service and costing contract may be more aligned to a contractor arrangement.  This sets out what you are willing to pay for and how much; some also include details of set terms relating to the exchange you want to offered.

Note -Fair Work Act provides for employers who have less than 15 workers a probation period where workers are exempt from unfair dismissal claims for 12 months, and a 6 month period where 15 or more workers are concerned. (This means workers can not contest dismissal if after probation they are not the right match.)

Workers personal information, must be collected and put somewhere safe. These records form part of what is usually referred to as Human Resources records. An employment details record differs from the employment agreement as it is a summary of personal details and includes contact details, medical information, next of kin, tax number, selected super fund, and pay arrangements etc, all in the one spot for quick access, i.e accounting purposes, a medical incident, or office reference.

Keep copies of official certification and clearance checks i.e Police checks working with children checks and first aid certification, and have a reminder system so when they are due to expire you can be proactive in ensuring they remain current. (Note – check names on the Police checks are full and accurate to passport or birth certificate details or they may not have been researched accurately.)

You may need to have a vehicle use agreement which defines responsibility and use of both your or your workers vehicle during work hours.

You need a copy of financial support documents.

Superannuation is only required to be paid for home and domestic workers if more than 30 hours is being worked in one week. But check this site for personal clarity. You will also find here what is required to set up for workers should they qualify or wish to make personal payments towards super while working for you as a direct employee.

You will need to take out  Work cover for your workers,  and possibly some other form of insurance for your home based business .

Work cover is a payment made based on your type of industry ,(for NDIS direct employment purposes this is considered home and domestic workers) how many hours of work, the rate of pay you intend to offer, and how many workers you are going to directly employ and is inclusive of the contractors you engage. Calculate approximately how many hours a month, the rate of pay you hope to offer, have your personal details handy to give the folk at icare, they deal with all workers compensation in NSW, call for a quote. This will help you to consider how much to set aside out of your budget for the coming funded term. Each State have their specific workers compensation directives.

  • To insure and what to insure that is the question?

Public liability insurance is designed for professionals who interact with customers or members of the public. It protects against claims of personal injury or property damage that a third party suffers (or claims to have suffered) as a result of your business activities. An example would be your support worker pushes you in your wheelchair into a member of the public who steps out of a shop unexpectedly, and is injured as a result. More understanding regarding public liability can be found on this link. Talking with brokers is highly recommended to ensure you get cover that is useful and it protects you from paying for something that is not needed. There are multiple insurance providers and this is such an expansive and personalised topic, it is best to do your own leg work, there are so many companies like GCU, allianz and many more. bizcover offers a comparative site; so enquire, google and explore.

You may find that home contents insurance could be worthwhile, consider how forgiving would you be if a worker was to accidentally break your smart TV or expensive antique and could not afford to replace it, how much stress would it put on the working relationship? It may suit you and pay in the long term or it may be nothing you feel is warranted in your situation, again it is personal and totally up to you.

You need to give workers information about how your business works and what you expect of them. This is where an induction process, manuals or a Policy and Procedure Guide come into the picture.

Workers need a guide and reference so they know clearly some of the main policies and procedures that govern their employment, conduct, and required tasks. They offer a general understanding and overview of health and safety matters that also relate to them.

How you design your over all final business guide is up to you. It may have multiple parts that come together like chapters to make one larger document, it could be a single extensive document or a very simple point styled list; however you intend to communicate with your workers, employers need to cover the fundamental areas of-

  • industrial relations,
  • tax,
  • superannuation,
  • workers compensation and
  • work health and safety.

Policies are formed by the related laws that govern employment and work conditions, and what is required of and by you the employer. They inform people working with you as the workers, and can be added to as you go; or as matters arise for  which further clarity or understanding is needed. Details are set in place for reference by you and your workers, and explain how you will respond to matters of importance, address areas of concern what you expect and how you want your working environment to run. For further information on these matters, guides, manuals and staff training see Policy and Procedures.

There is a bit to it but once you have your internal structures in place, a small review annually should keep everything current. If any major changes to legislation come about you can find out via Fair Work the ATO, contact with people in the field of support services or disability groups. There is the NDIS themselves or directly supported updates via a Chamber of Commerce if you choose to join.

So now you have your workers, their official paper work, some sort of guide, manual or documented framework for your business policy and procedures and it all starts to come together.

Award wages and remuneration are covered in your Business Manual, letter of acceptance or Service and Costings contract, however you need to decide on how you are going to keep your financial records – hard copy, digital or outsource?

There is also a number of support documents that complement and support important internal processes and form part of your human resource records. Aside from recruitment and financial requirements these may include –

  • Induction paper work, that being relevant guides such as a Code of Conduct and Ethics,  Employment Terms and Conditions, Work Health and Safety Procedures
  • Receipt of induction paper work
  • Probation Report 
  • Incident Report
  • Evacuation Report
  • Emergency Medical Service Report 
  • Return to Work Plan
  • Register of Injuries
  • Work Cover Record of injuries
  • Complaint Form
  • Complaint Response Form
  • Employee Performance Appraisal
  • Employee Termination Record 
  • Letter of Dismissal

For your support there is also available on this site an example of

  • a roster
  • a timesheet
  • a payslip

These documents are a reference guide and starting point and it is considered you will create and personalise documents to suit and support your needs over time.