As an employer, it is important that you are aware of your responsibilities relating to employee rights, employment terms and conditions, contracts, leave, and wages.  A breach in your employee’s rights could result in possible penalties for your business.

So what is fact and what is fiction?  Here are some common workplace myths, busted.

If you’ve been working under a misapprehension of your duties as an employer, get some advice now.

Myth:  You can test a new employee by asking them to work an unpaid trial.

Fact:   There is no such thing as an UNPAID trial.

Myth:  Employees must work for you for 12 months before they can take leave.

Fact:   All leave starts to accrue as soon as employees commence work.

Myth:  A worker with an ABN (Australian Business Number) is a contractor.

Fact:   Having an ABN does NOT automatically make someone a contractor

Myth:  You can send home your employees without pay if there isn’t enough work.

Fact:   You must pay employees their normal working hours, even if there isn’t any work.

Myth:  As an employer, you have to give employees 3 warnings before firing them.

Fact:   There is no legal requirement that says you have to give 3 warnings.

Myth:  You don’t have to pay redundancy if the employee finds another job.

Fact:   Redundancy is payable if the employee is terminated because the employer no longer needs their position to be done by anyone, or because of liquidation or bankruptcy.  Whether they find another job is irrelevant.

All myths busted by Your LegalHQ.


This information is purely educational in nature and is not legal advice.  If you require legal advice about any of the matters raised here, you must call a solicitor and obtain advice based on your individual circumstances.