How Much Do I Pay Someone As a Startup?
So your Startup has started and you are now finding that you need to hire someone, and you are asking how much do I pay someone?
Employment is a difficult thing. You need to find the right person, with the right skills and experience, and then they have to fit in with your budget.
In Australia we have what are called awards. An award is a instrument that outlines the conditions of employment that you as the employer must provide the employee. There are 122 different awards in Australia and they often relate to the task someone does. e.g., if you have a building company and you have carpenters and office staff they will be covered by two different awards.
Awards cover elements like minimum pay rates, and applicable penalty rates. So before you start thinking about employing someone, check what the award rates and conditions are. You can find them all here https://www.fairwork.gov.au/awards-and-agreements/awards
We pay above award so the award doesn’t apply
Yeah right. This is common mistake that a lot of people make. They think that if they pay above award, then the award doesn’t apply. IT DOES! The award is the base of the employment. A client of ours who pays above award, thought that the award didn’t apply. They had an employee who had contracted cancer and needed time off. They paid her for a short period thinking that she didn’t have enough leave. However the applicable award starts that 10 days personal/sick leave accumulates year on year. She had been there for 15 yrs! She had over 100 days of sick leave and they had to back pay her and everyone else. A very expensive exercise.
I’m only a small business, Awards don’t apply to me
YES THEY DO! They apply to everyone who employs someone and for what ever period.
My industry isn’t covered by an award so I don’t have to worry about it
Once again, yeah right. Every award is based on the National Employment Standards (NES). So of your industry isn’t covered by an award, which is hard to believe, then you revert to the NES. You can find more information on the NSW here https://www.fairwork.gov.au/employee-entitlements/national-employment-standards
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