As the new financial year begins, there’s no better time for Australian businesses to conduct a comprehensive HR compliance check. In our recent HR Bites webinar, Kelly Hallett, Head of HR Team Services at Harrisons, shared essential insights to help business owners, managers, and HR leaders stay on top of their compliance obligations.
A recent Fair Work Ombudsman audit found a Cairns restaurant had underpaid 32 staff more than $24,000—highlighting how easily businesses can slip into non-compliance, even without intent. The restaurant mistakenly applied the wrong enterprise agreement, proving how critical it is to confirm the correct award and classification for each employee. Griffith University is another example, now repaying over $8.3 million in wages, interest, and superannuation following a major underpayment review.
Compliance matters for more than just avoiding legal penalties. It impacts operational efficiency, supports your brand reputation, reduces ambiguity, and protects both employees and the business from unnecessary disputes or Fair Work claims. As Kelly said, “Compliance isn’t just a legal obligation—it’s a cultural advantage.”
Harrisons recommends focusing on three key compliance areas this July:
1. Award and Pay Compliance
Ensure each employee is covered by the correct modern award and classification, even if they are paid above award rates. Misclassification remains a common and costly mistake. Check allowances, loadings, and conduct a Better Off Overall Test (BOOT) if you’re offsetting award entitlements. Document your audit to create a clear record of decisions and actions.
2. Employment Contract Reviews
Employment contracts should be reviewed annually or whenever there are legislative updates. This year, look out for:
Updated casual definitions and conversion provisions
Pay secrecy and transparency clauses
Maximum term contract rules
Compliant flexibility and offset clauses
Make sure your contracts reflect the correct employment type, protect employer and employee rights, and don’t include conflicting or outdated terms. Importantly, contracts should reference (but not incorporate) policies, and include robust clauses on termination, confidentiality, and remuneration.
3. Policy Updates and Training
Policies should be up-to-date, practical, and accessible to all employees. This year, review policies on:
Family and domestic violence leave
Flexible work arrangements (post Fair Work Act changes)
Positive duty obligations under the Respect@Work reforms
Remote work safety and psychosocial risk management
Parental leave (with inclusive, gender-neutral language)
Training is just as important as having policies. Use a range of formats—from face-to-face to e-learning—to ensure your team understands and applies them. Policy reviews should also involve employee consultation and risk assessments.
Take the First Step
To help you get started, Harrisons has created a free HR Compliance Checklist—accessible via QR code in the webinar or directly on our website. If you need expert support, we offer pay audits, contract reviews, and full policy development services tailored to your business.
Compliance is more than ticking boxes—done right, it creates a strong foundation for trust, fairness, and business success. Start your compliance refresh today and set your business up for a confident, compliant year ahead.
Claire Harrison is the Founder and Managing Director of Harrisons, a flourishing HR consulting business that sprouted in 2009 from Claire’s passionate belief that inspiring leaders and superstar employees are the key success factor to any business. With over 20 years’ experience, Claire has worked as a HR Director of multi-national organisations, as a Non-Executive Board Director, and a small business owner. Claire’s corporate career includes working with companies such as BHP, Westpac, Fonterra and Mayne Nickless.
