Unfair Dismissal Claims and Casual Labour Hire Risks to Consider

You must consider all risks involved in casual labour hire and avoid the common mistakes that business owners often commit. Therefore, before entering into any agreement with casual workers consider all factors to enjoy the benefits that it provides. These factors include:

• Training: Ground training is absolutely necessary for the casual workers to meet with nature and need for the job and adapt to the requirements of the company.  No additional training will be provided to them.

• Fit in: Casual workers must fit in properly alongside the permanent employees so that there are no conflicts of interests and ego.

• Benefits: They must understand that they will not get the same benefits as the permanent employees but will have to work diligently for months on end.

• Health and Safety: They must follow the Health and Safety policy of the organization to avoid the inherent risks in a job.

• Legislation: Your casual labour hire policy must follow good governance as per the Labor Guide.

• Reliability: Check for the reliability of the casual workers with proper screening process so that you or your company do not fall prey to fraud, theft or corruption.

Casual Labour Hire

The Upside of Hiring

The idea of casual labour hire can prove to be very beneficial for your company as they can really prove to be a massive asset. Providing valuable resource, they are a useful reserve to fill up absentees or be an extra helping hand during peak periods. They will ensure that your productivity is not interrupted creating a positive impact on it. However, there are a few common mistakes you must avoid while hiring casual workers such as:

• Intellectual property agreement – Always start with such an agreement so that you have innovative and non-obvious ideas incorporated into your project, but also have the early obligation of transferring IP rights to you.

• Notify Your Customer – Failing this will increase the risk of casual labour hire should the contractor intentionally or negligently harms your customers.  Make sure that the contractor is adequately insured to indemnify and defend your business if any such claims arise.

• Classify Actual Employee – You must never misclassify employees as contractors as that will cost a steep price if the contractors claim by state or federal regulators or the IRS. Follow the IRS Checklist for such classification.

• Liable for Wrongful Acts – Know the vicarious liability and agency theory so that you are not liable for the wrongful acts.

• Follow Intellectual Property Rules – When you are hiring contract workers, make sure that they do not use the confidential or proprietary information they are exposed to.

Avoiding Unfair Dismissal Claims

Know the unfair dismissal laws under the Fair Work Act, if you are thinking for a long-term casual labour hire. This will eliminate their expectations of continued employment. There are a few things to make sure such as:

• The casual workers must work for at least 6 months or more in the same role
• Able to show that they work on regular shifts
• They work on a systematic and regular basis and
• They expect to work on the same shifts each week.

Casual Labour Hire

Business Practices to Follow

To avoid an unfair dismissal, claim first create the written policies and procedures manual. It must clearly communicate your business ideas, principles, termination, the course of action, period of notice and behaviour considered to be the breach of employment contract.

Communicate special rules, procedures, and practices of your workplace to evade unnecessary problems. If you have less than 15 employees, include the probationary period in the contract for 6 or 12 months. This will allow your business and the new joiner to assess each other to build a better working relationship.