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As we head into the final stretch of the year, small and medium-sized employers need to shift their focus from the usual HR priorities like employee happiness and engagement to more pressing concerns—ones that can literally make or break your business. This isn’t just about keeping people satisfied; it’s about keeping your business afloat, staying compliant with ever-changing laws, and, most critically, avoiding the looming threat of wage theft claims that could land you in serious trouble.
So let’s dive straight into the top three HR priorities you should focus on before 2025 hits. I’ve broken these down into three months: October, November, and December. Follow this roadmap to ensure you’re not only compliant but also ready for whatever 2025 throws your way.
Wage compliance isn’t just a box to tick—it’s a legal requirement that can’t be ignored. It’s crucial to understand the award or enterprise agreement that governs your employees. Many employers fall into the trap of thinking they’re safe just because they pay above award rates. But wage compliance isn’t just about base pay—it’s about allowances, loadings, and penalties, AND understanding the technical rules around the span of working hours.
For example, you might think you’re in the clear because you’re paying someone a six-figure salary well above the award minimum. But what happens when that employee skips their lunch break every day and suddenly, without realizing it, you owe them penalty rates for half of their working day? That’s how quickly things can spiral into non-compliance, and come January 2025, this could be classified as wage theft—yes, even if it was unintentional (reckless).
Take October to thoroughly understand what governs wage compliance in your business. If you don’t have the time to get across this, reach out to an expert. Trust me, you don’t want to leave this unchecked.
After the work we did on October, November is then the time to dig into your payroll and see if you’re truly compliant. I recommend conducting a payroll audit by picking a four-week block from the last three to six months. Select a sample of employees—whether it’s one or 10—and check what their payslips say versus what they should have been paid according to the award or enterprise agreement.
This exercise will give you an indication of whether you’re above board or on the verge of a wage theft claim. Underpayment doesn’t just impact your business financially; starting in 2025, it can lead to criminal charges. A simple misstep in how allowances or loadings were applied could result in hefty penalties or worse—jail time for Directors.
Your employment contracts are your first line of defence against wage theft claims, the right to disconnect, and any number of HR-related legal issues. Given that Australia’s employment laws have changed more than 27 times in the last two years, keeping these contracts up to date isn’t just a good idea—it’s essential.
In particular, pay close attention to clauses around overtime and off-setting. The “right to disconnect” legislation means employees can refuse to respond to work-related messages outside of hours unless it’s deemed unreasonable. If your employment contracts don’t explicitly set out expectations around work outside of business hours, you might find yourself in a challenging legal situation if disputes arise.
Take the time this December to ensure your contracts reflect the current legal landscape. This is particularly important for businesses that pay above-award rates, as you’ll want to ensure that any additional compensation covers the overtime or penalties employees might claim under the new laws.
The next three months are critical for small to medium-sized businesses. While employee engagement and satisfaction are important, they aren’t the top priorities as we close out 2024.
Focus on wage compliance, conduct a payroll audit, and review your employment contracts to ensure that you’re fully prepared for the challenges 2025 will bring.
If you’re feeling overwhelmed by any of this, remember, we’re here to help. The HR Cartel specialises in making sure small to medium-sized employers are equipped with the tools and strategies they need to succeed in an increasingly complex regulatory environment. Get in touch if you need assistance—we’ve got you covered.
Let’s get ahead of this now so we can all breathe a little easier in the new year.
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