Business owners and employers in Australia have to meet legislation and follow the law to avoid risks of non-compliance. One of their key duties under employment legislation is to provide employees with relevant documents such as Fair Work Information Statement.
What is a Fair Work Information Statement?
A Fair Work Information Statement (FWIS) is a document issued by the Fair Work Ombudsman (FWO) that gives new employees a general overview of the National Employment Standards (NES) and conditions of employment.
As a business owner and employer, you have a legal obligation to give new employees a copy of the FWIS before or as soon as practical after they start employment. You can give them a copy of the statement in-person or by email, email link to the FWO website, mail, or fax.
Under the Fair Work Act 2009 employers who do not distribute copies of the Fair Work Information Statement may face a financial penalty for a breach of the NES.
Information Statements
Employers must give every new employee one or more information statements when they start work. All new employees must receive the Fair Work Information Statement regardless of their employment type.
If the employee is casual, they must also receive the Casual Employment Information Statement. If the employee is employed for a fixed term, they must also receive the Fixed Term Contract Information Statement.
Information contained in the Fair Work Information Statement
The FWIS sets out an employee’s main rights and entitlements at work. The statement also contains information about the Fair Work Commission (FWC) and Fair Work Ombudsman (FWO).
Each year the FWO updates the FWIS and publishes a new version of the statement on or around 1 July. All employers are required to distribute the most up-to-date version of the statement to new employees.
Inside the FWIS is useful information about the following:
- The 10 National Employment Standards (NES)
- Modern Awards
- Agreement-making under the Fair Work Act 2009
- Right to freedom of association
- Role of the Fair Work Commission and the Fair Work Ombudsman
- Termination of employment
- Individual flexibility agreements
- Right of entry
- Protection from discrimination and other adverse action
- Flexibility in the workplace and the right to request flexible working arrangements
What are the National Employment Standards?
The National Employment Standards (NES) set out the minimum employee rights as they apply under Australian workplace law.
Below are the 11 National Employment Standards:
- Maximum weekly hours of work: for a full-time employee, this is 38 hours per week unless their award or enterprise agreement specifies different hours, plus reasonable additional hours.
- Requests for flexible working arrangements: Certain employees have the right to ask for a change to their current working arrangement.
- Parental leave and related entitlements: Up to 12 months of unpaid leave and the right to ask for an extra 12 months of unpaid leave. Also includes adoption-related leave.
- Annual leave: Four weeks paid leave per years. Some shift workers are entitled to an extra week of annual leave.
- Personal/carer’s leave, compassionate leave, and family and domestic violence leave: 10 days of paid personal/carer’s leave, two days unpaid carer’s leave as required, two days compassionate leave as required, and 10 days of paid family and domestic violence leave each year (in a 12-month period).
- Community service leave: Unpaid leave for voluntary emergency activities and leave for jury service. Full-time and part-time employees are entitled to ‘make-up pay’ (the difference between any jury duty payment from the court and their base rate of pay for the hours they would have worked) for the first 10 days of jury duty.
- Long service leave: Paid leave for employees who have been with the same employer for a long time.
- Public holidays:A paid day off on a public holiday (unpaid for casuals), except where the employee is reasonably asked to work.
- Notice of termination and redundancy pay: Up to five weeks of notice of termination and up to 16 weeks of redundancy pay, both based on length of service.
- Provision of a Fair Work Information Statement: Must be provided by employers to all new employees.
- Superannuation contributions: Employers must make contributions to eligible employees'super funds under the super guarantee laws.
These standards apply to all employees covered by the national workplace relations system. But only a select number of workplace entitlements apply to casual employees.
The terms of a modern award or enterprise agreement cannot offer less than the minimum standards set out by the NES. However, a Modern Award or Enterprise Agreement is allowed to offer superior entitlements.
Consequences of non-compliance
Under the Fair Work Act 2009, providing the FWIS is a legal requirement for employers. Every employer must ensure the statement is provided to new employees as soon as practicable after commencement of employment. Failure to comply with these obligations can lead to penalties and workplace disputes.
Updating the FWIS
Employment laws and regulations in Australia are subject to change. It is essential you keep up to date with the latest legal requirements. Business owners and employers should review the FWIS periodically to ensure any legislative changes are reflected.
Changes can include:
- Changes to the National Employment Standards
- Updates in Modern Awards
- Amendments in agreement-making or other employment legislation
Regular reviews and updates help protect your business from potential compliance issues.
New employee checklist
Preparing a new employee checklist is a great way to streamline the induction process and make sure new employees have all the information and guidance they need to transition smoothly into their new job.
Besides giving new employees a copy of the Fair Work Information Statement, you should also give them a copy of your official employee handbook containing information about the employee’s job description, tasks and duties, company culture, and policies and procedures. Other important documents you should give inductees include banking, Tax File Number and superannuation details, and Workplace Health and Safety policy.
Make sure the new employee has carefully reviewed all of these materials and they clearly understand the contents of each document. You can confirm this by having the new employee sign an acknowledgement form.
All documents signed by the new employee must be stored in a secure place which complies with privacy laws.
Know your obligations
Business owners and employers in Australia have many obligations and duties. Staff management, recruitment, performance management, health and safety are just some of them. Peninsula offers tailored support and resources developed to help you meet your obligations and minimise the risk non-compliance. Call our expert team to learn how we can help you.