Preparing for Year-End and Staying Compliant with the Fair Work Act
As the end of the financial year approaches, business owners and HR professionals are juggling a long list of priorities: finalising budgets, preparing tax records, managing leave balances, and perhaps even conducting performance reviews. But amidst the chaos of year-end wrap-up, there’s one crucial area that often gets overlooked — compliance with the Fair Work Act and modern Awards.
Even employers with the best of intentions can find themselves on the wrong side of compliance. Why? Because Award interpretation, pay rate reviews, and conditions of employment change frequently — and unless you’re checking regularly, it’s easy to fall behind.
Why Compliance Matters at Year-End
The Fair Work Ombudsman has made it clear: ignorance is not an excuse. Non-compliance can result in hefty penalties, reputational damage, and unnecessary stress. And let’s be honest — no one wants to start the new financial year under the microscope.
Year-end is the perfect time to take stock and ensure your employment practices are up to date and legally sound.
Here are five key areas to focus on as you close out the year:
1. Award Reviews and Pay Rates
Modern Awards often have scheduled updates in July. These can include:
– Minimum wage increases
– Changes to penalty rates or allowances
– Classification definitions or job duty clarifications
Make sure you:
– Check the latest version of the applicable Awards for your business.
– Review your payroll systems and make adjustments before the first pay run of the new year.
– Communicate changes clearly with staff, especially if their pay will increase.
Tip: Don’t assume the Award hasn’t changed just because it’s been stable in the past.
2. Annual Leave and Leave Loading
Now’s the time to audit:
– Accrued annual leave balances
– Leave loading entitlements
– Shutdown periods and how you’re managing them under the relevant Award or enterprise agreement
If you’re requiring employees to take leave during a shutdown, ensure you’re following the notice and procedural requirements under the Fair Work Act and the applicable Award.
3. Timesheets, Rosters, and Hours Worked
Year-end is a great opportunity to check:
– Do your staff work regular overtime?
– Are breaks being taken and recorded properly?
– Is there a risk of underpayment or misclassification?
Good payroll systems are only as accurate as the data entered. Ensure timesheets reflect actual hours worked and are signed off by both employees and supervisors.
4. Contract and Classification Checks
Employee roles may have evolved over the year. It’s common for duties to shift — but have you reviewed whether the employee’s classification (and pay) still aligns with their actual work?
Misclassification is a major source of underpayment risk, particularly in industries covered by complex Awards.
5. HR Policies and Employment Contracts
Take this opportunity to:
– Review employment contracts and ensure they align with current legislation and Awards.
– Update policies on flexible work, leave, and performance management.
– Ensure you have up-to-date records for all employees, including right to work documentation, licenses, and training compliance (especially in safety-critical industries).
Let’s Get You Ready
While many businesses use this time to reflect and reset goals for the year ahead, it’s equally important to make sure your compliance house is in order.
At ForgeHR, we help businesses ensure their HR practices are both people-focused and legally sound. Whether it’s conducting an Award compliance audit, updating employment contracts, or reviewing payroll systems, we can help you avoid the trap of “we didn’t know” — and instead move into the new year with confidence.
Let’s make sure your good intentions don’t land you in a non-compliance spot.
Contact ForgeHR today to schedule your Fair Work compliance check before June 30.
