Workplace Rights in Australia: Clearing Up Common Myths

Understanding your rights and obligations at work can be confusing—especially with the amount of misinformation floating around. Whether you’re a small business owner trying to stay compliant or an employee unsure of what you’re entitled to, believing the wrong things can lead to big problems.

Let’s break down some of the most common workplace myths in surrounding workplace rights in Australia—and what the law actually says about them.

Myth 1: “Casual workers don’t have any workplace rights.”

This is one of the most common and damaging misconceptions out there.

Reality: Casual employees in Australia are protected under the Fair Work Act, and they are entitled to a range of rights and entitlements—despite the flexibility that casual work offers.

Key entitlements casual employees receive:

Casual loading (usually 25%) – This is paid in lieu of entitlements like annual leave and personal leave.
Unpaid carer’s leave and compassionate leave – 2 days per occasion.
Community service leave – For eligible activities like jury duty.
Superannuation contributions – If they earn $450+ per month (note: from July 2022, this threshold was removed, meaning most casuals are now entitled to super).
Protection from unfair dismissal, if they’ve worked regularly for 6 months (or 12 months for small businesses).

Bonus Fact: Under the 2021 reforms to the Fair Work Act, casual employees who have been employed for 12 months and have worked regular shifts for at least 6 months can request to convert to permanent employment—and in some cases, employers are required to offer it.

Myth 2: “Employees must work for 12 months before they can access any leave.”

This one can trip up both employers and employees.

Reality: Annual leave and personal leave start accruing from an employee’s first day of work—as long as they’re employed on a full-time or part-time basis.

Here’s what they’re entitled to:

Annual Leave: 4 weeks per year (pro-rata for part-time), starts accruing from day one.
Personal/Carer’s Leave: 10 days per year for full-time employees (pro-rata for part-timers), also starts accruing immediately.
Compassionate Leave: 2 days per occasion—available immediately and not deducted from personal leave.
Unpaid Parental Leave: After 12 months of continuous service.
Long Service Leave: Entitlements vary by state or territory, but may start accruing from year 1.

Casuals, on the other hand, do not accrue paid annual or personal leave—but may still be entitled to unpaid leave for certain situations (like carers leave or parental leave if they’ve met the qualifying period).

Myth 3: “Small businesses are exempt from unfair dismissal claims.”

Small business owners, take note: this myth could cost you thousands.

Reality: All businesses, including those with fewer than 15 employees, can face unfair dismissal claims if the employee is eligible.

Eligibility for an unfair dismissal claim:

Employee must have worked for at least 12 months for a small business (6 months for larger employers).
The employee must have been dismissed unfairly—meaning the dismissal was harsh, unjust, or unreasonable.
The business must have followed due process—including providing warnings, chances to improve, and a valid reason for termination.
The Small Business Fair Dismissal Code exists to help small businesses manage termination lawfully. Following it is not optional—it’s your legal safety net.

Important tip: Always document warnings, performance reviews, and reasons for dismissal.

Myth 4: “If you’re paying someone above the award, you don’t need a written contract.”

This is a dangerous assumption—and it could backfire quickly.

Reality: An employment contract is essential, regardless of how much you’re paying someone.

Even if you’re paying well above the relevant award or enterprise agreement, a written contract helps to:

Clarify expectations – such as duties, hours, and reporting lines.
Reduce legal risk – by specifying notice periods, confidentiality, and post-employment restrictions.
Avoid disputes – about entitlements, leave accrual, termination, or classification.

Bonus tip for employers: If you’re using “annualised salaries” to pay above the award, you must follow strict requirements around:

Maximum hours worked
Record keeping
Annual reconciliation of hours vs salary

Useful Resources:

Myth 5: “If someone is underperforming, you can just let them go.”

We get it—managing underperformance is hard. But even small mistakes can lead to big claims.

Reality: Terminating someone for poor performance must follow a fair process, or it may be deemed unfair dismissal—even if the employee wasn’t meeting expectations.

Best practice includes:

Clearly communicating concerns and setting expectations
Giving the employee a reasonable opportunity to improve
Providing support (like training or clearer KPIs)
Documenting everything

Even in casual or probationary employment, you still need a valid reason and fair process. Simply saying “they’re not a fit” won’t hold up if challenged.

Useful Resources:

10 HR Templates Every Aussie Small Business Needs

Running a small business in Australia means juggling a lot—sales, operations, compliance, and, yes, HR. But you don’t need to reinvent the wheel for every hire or policy update. With the right templates in your toolkit, you can stay compliant, save time, and protect your business.

Here are 10 essential HR templates every Aussie small business should have on hand in 2025—with tips on how to use them and why they matter.

Employment Contract Template (Full-Time, Part-Time & Casual)

This is the foundation of a strong employment relationship. A good contract clearly sets out:

Job title and duties
Hours of work
Pay and entitlements (in line with the relevant award or agreement)
Notice periods and termination terms

Why it matters:

Contracts protect both employer and employee, and ensure you’re meeting Fair Work obligations. Each employment type needs its own version—casual contracts, in particular, should spell out the nature of the engagement and loading rates.

Employee Handbook / HR Policy Manual

A one-stop guide for your team. Your handbook should include:

Code of conduct
Workplace health and safety
Leave entitlements
Social media policy
Bullying, harassment & discrimination policies

Why it matters:

Having your policies in writing helps manage expectations, handle disputes, and show that your business takes compliance seriously.

Note: For guidance on creating workplace policies, visit the Fair Work Ombudsman’s website.

Fair Work Information Statement Template

This one’s not optional—you must give every new employee a copy of the Fair Work Information Statement (FWIS), and the Casual Employment Information Statement (CEIS) for casuals.

Why it matters:

It’s a legal requirement. Providing this helps ensure employees understand their basic workplace rights from day one.

Onboarding Checklist

Make sure nothing falls through the cracks. Your checklist should cover:

TFN declaration
Superannuation standard choice form
Copy of employment contract
Emergency contact details
Policy acknowledgements
Required licenses or certifications

Why it matters:

A consistent onboarding process helps new hires feel welcome and ensures you meet your record-keeping and compliance obligations.

Note: For more information on hiring employees, visit business.gov.au.

Leave Request Form

Even in the digital age, a simple leave request form (or online equivalent) keeps things clear and trackable.

Why it matters:

Documenting leave ensures accurate records and avoids confusion around entitlements—especially if you’re juggling casual, part-time, and full-time staff.

Note: For information on leave entitlements, visit the Fair Work Ombudsman’s leave page.

Performance Review Template

Whether you do annual reviews or quarterly catch-ups, this template helps structure:

Key achievements
Areas for improvement
Goal setting
Training needs
Feedback and ratings

Why it matters:

Regular performance reviews improve engagement, provide legal protection, and give structure to career development—even in small teams.

Note: For guidance on managing performance, visit the Fair Work Ombudsman’s managing performance page.

Warning Letter Template (Verbal & Written)

Performance or conduct issues? You need a clear, respectful way to document it.

Why it matters:

Following a fair disciplinary process is essential to defend against unfair dismissal claims. A warning letter outlines the issue, expectations moving forward, and consequences if things don’t improve.

Note: For templates and guidance on warnings, visit the Fair Work Ombudsman’s warning templates page.

Termination Letter Template

Ending employment—whether it’s a resignation, redundancy, or dismissal—should always be documented in writing.

Why it matters:

A termination letter helps ensure you’re following due process, outlines final pay, and records the reason for the departure. Attach a separation certificate if required.

Note: For guidance on ending employment, visit the Fair Work Ombudsman’s ending employment page.

Workplace Incident Report Form

Accidents happen. Whether it’s a physical injury or a safety near-miss, this form helps you record:

What happened
Who was involved
When and where it occurred
Immediate actions taken
Follow-up steps

Why it matters:

Documenting incidents is a requirement under Work Health and Safety (WHS) laws and protects your business if a workers’ comp claim follows.

Note: For incident notification forms and guidance, visit Safe Work Australia’s incident notification page.

Flexible Work Request Form

Post-COVID, flexible work is here to stay. Employees (particularly carers, parents, and people over 55) have the right to request flexible work arrangements.

Why it matters:

A formal template ensures all requests are handled fairly and consistently—and helps document your response for legal compliance.

Note: For information on flexible working arrangements, visit the Fair Work Ombudsman’s flexible working arrangements page.

Indigenous Inclusion in the Workplace: Going Beyond Acknowledgement

In many Australian workplaces, the Acknowledgement of Country has become a familiar part of meetings and events — and that’s a positive step. But genuine Indigenous inclusion doesn’t end there.

To create truly inclusive, respectful, and empowering work environments, businesses must move beyond symbolic gestures and take practical, meaningful action. Whether you’re a small business or a large organisation, now is the time to invest in long-term cultural change — not just box-ticking.

In this blog, we’ll explore how Australian workplaces can go beyond acknowledgement through Reconciliation Action Plans (RAPs), cultural competency, and inclusive hiring practices.

Why Indigenous Inclusion Matters

Aboriginal and Torres Strait Islander peoples are the Traditional Custodians of the land we live and work on. Despite their deep cultural strengths and contributions, Indigenous Australians continue to face systemic disadvantages in health, education, and employment.

Employment is a key driver of economic empowerment, self-determination, and reconciliation.

Yet many workplaces still fall short of creating inclusive environments where Indigenous staff feel supported and respected.

True inclusion isn’t just about hiring — it’s about listening, learning, and making space.

What Is a Reconciliation Action Plan (RAP)?

A Reconciliation Action Plan (RAP) is a framework developed by Reconciliation Australia to support organisations in contributing to reconciliation.

There are four types of RAPs:

Reflect – For organisations just starting out

Innovate – For those ready to take more structured action

Stretch – For embedding reconciliation into business practices

Elevate – For leaders in the reconciliation movement

What a RAP Might Include:

Cultural awareness and training programs
Indigenous supplier and procurement initiatives
Committing to targets for Indigenous recruitment and retention
Acknowledging days of significance like NAIDOC Week and National Reconciliation Week
Community engagement and partnerships

Why RAPs matter:

They create accountability and structure. They turn good intentions into measurable outcomes.

Build Cultural Competency Across Your Team

Cultural competency is the ability to understand, communicate with, and effectively interact with people across cultures. For Indigenous inclusion, this means learning about:

The diversity of Aboriginal and Torres Strait Islander cultures
The impact of colonisation and intergenerational trauma
The importance of connection to land, language, and community
Contemporary issues affecting Indigenous peoples

How to Start:

Run cultural awareness training (with First Nations facilitators)
Encourage staff to engage with Indigenous-led media, books, podcasts, and events
Celebrate Indigenous success stories within your industry or community
Include cultural protocols in onboarding and policy handbooks

Why it matters:

Cultural competency improves communication, builds respect, and helps avoid harmful misunderstandings or assumptions.

Rethink Your Hiring and Retention Practices

It’s not enough to say you’re open to Indigenous applicants — you need to actively remove barriers and create culturally safe workplaces.

Inclusive hiring practices might include:

Advertising jobs through Indigenous job boards (e.g. Indigenous Employment Australia, NIT Jobs)
Using culturally inclusive language in job ads
Offering mentoring and support for First Nations staff
Acknowledging and respecting cultural obligations, such as Sorry Business
Partnering with Indigenous training and employment organisations

Tip: Avoid tokenism. Inclusion is not about ticking boxes, but about long-term investment, development, and respect.

Start Small, Grow Strong

Inclusion doesn’t happen overnight — and that’s okay. What matters is committing to continuous learning and taking the first real step.

Simple ways to get started today:

Invite a local Elder or Indigenous speaker to talk to your team
Build a Reflect RAP with guidance from Reconciliation Australia
Audit your recruitment process for bias or barriers
Create an internal working group focused on reconciliation
Educate yourself on Indigenous history and current affairs

Final Thoughts

True Indigenous inclusion goes far beyond land acknowledgements. It means creating workplaces where Aboriginal and Torres Strait Islander people are welcomed, respected, and empowered — not just represented.

Hiring from Overseas: A Guide to Sponsoring Workers for Australian Businesses

As Australia continues to experience skill shortages in key industries such as construction, hospitality, healthcare, and technology, more businesses are turning to skilled migration as a solution. For many employers, sponsoring an overseas worker is a strategic way to fill critical roles that cannot be sourced locally.

However, sponsoring a foreign worker involves a multi-step legal process, regulatory compliance, and financial considerations. This guide provides a clear overview of what sponsorship entails and how Australian businesses can begin this process.

What Is Sponsorship?

Sponsorship refers to a business entering into a formal agreement with the Australian Government to employ and support a skilled overseas worker. The business assumes a number of responsibilities to ensure compliance with Australian immigration laws.

The most common visa used for this purpose is the Temporary Skill Shortage (TSS) visa (subclass 482). This visa allows employers to address labour shortages by bringing in skilled workers where qualified Australians are not available.

The Sponsorship Process: An Overview

There are three primary stages to sponsoring an overseas worker:

Becoming a Standard Business Sponsor

Before nominating a position or sponsoring a worker, a business must apply to become a Standard Business Sponsor.

Eligibility criteria include:

Being legally and actively operating in Australia
Demonstrating the capacity to meet sponsorship obligations
Having no adverse history with government regulators (such as Fair Work Ombudsman violations)

Once approved, sponsorship status is valid for five years.

Nominating a Skilled Position

Once sponsorship approval is granted, the employer must nominate the role they wish to fill with an overseas worker. The position must align with an occupation on the Skilled Occupation List published by the Department of Home Affairs.

Requirements include:

The nominated role must be genuine and aligned with business needs
Labour Market Testing (LMT) is typically required, which involves advertising the position for a minimum of 28 days
Evidence must be provided to demonstrate efforts to hire an Australian citizen or permanent resident

Common nominated positions include chefs, software engineers, electricians, motor mechanics, nurses, and aged care workers.

Visa Application by the Worker

After the role is successfully nominated, the prospective employee must apply for the visa. Applicants must demonstrate that they meet all skill, experience, and English language requirements for the nominated role.

They are also required to undergo health and character assessments as part of the application process.

Processing times for subclass 482 visas can vary depending on the role and stream (short-term or medium-term), ranging from a few weeks to several months.

Costs Involved in Sponsorship

Sponsorship involves several mandatory fees and levies. Below is an indicative cost breakdown (as of 2025):

Fee Type	Estimated Cost (AUD)
Standard Business Sponsorship	$420
Nomination Fee	$330
Skilling Australians Fund (SAF) Levy	$1,200 to $1,800 per year
Visa Application (main applicant)	From $1,330

Please note that the SAF levy depends on the business’s annual turnover and must be paid in advance for the entire duration of employment.

It is a breach of immigration law for an employer to seek reimbursement of these costs from the employee.

Employer Obligations

Employers that sponsor overseas workers are subject to a number of ongoing obligations, including:

Paying the market salary rate, which must meet or exceed the Temporary Skilled Migration Income Threshold (TSMIT), currently set at $70,000 per annum (subject to change)
Ensuring that terms and conditions of employment are no less favourable than those offered to Australian employees
Cooperating with compliance checks conducted by the Department of Home Affairs
Keeping appropriate employment records
Notifying the Department if the sponsored employee leaves the organisation or changes roles

Failure to meet these obligations can result in fines, cancellation of sponsorship approval, and reputational damage.

Pathways to Permanent Residency

Many skilled migrants seek permanent residency (PR) in Australia following temporary sponsorship. For employers, this offers a way to retain highly valued staff for the long term.

There are several pathways available, including:

Permanent sponsorship requires additional eligibility criteria, including length of employment, continued need for the role, and relevant qualifications or licensing.

Is Sponsorship Right for Your Business?

Sponsoring an overseas worker may be appropriate for your business if:

You are experiencing ongoing difficulty finding suitably skilled Australian workers
You are able to meet the financial and legal responsibilities of sponsorship
The role you wish to fill is on the current Skilled Occupation List
You are planning for long-term workforce development

It may not be suitable if:

Your business is not financially stable or compliant with industrial relations law
The vacancy is short-term, low-skilled, or casual in nature
You require immediate placement and cannot accommodate processing timeframes

Final Considerations

Sponsoring overseas workers can provide Australian businesses with access to critical skills that support growth and innovation. However, it is essential to fully understand and meet the legal responsibilities that come with being a sponsor.

With the right preparation and advice, sponsorship can be a valuable workforce strategy — delivering long-term benefits for both the business and the employee.

Liquid HR is a leading HR consulting firm helping businesses of all sizes to navigate the complexities of human resource management, while providing tailored HR services based on their unique requirements, including HR Outsourcing, Recruitment and HR Advisory Services.

With offices in Melbourne, Sydney and Brisbane, we work with businesses across Australia.

For more information, please contact us on 1300 887 458 and speak with one of our HR Consultants.