LEGAL INFLUENCES Employer Obligations: Providing work Payment of income and expenses Meeting requirements of industrial relations and legislation Duty of care Employee Obligations Obey the lawful and reasonable commands made by the employer Use care and skill in the performance of their work activities Act in good faith and in the interests of the employer The Employment Contract The Employment Contract creates obligations for both employer and employee and all businesses operate within a legal frame work of common law. The most basic relationship in employment and the workplace is between employer and employee. An Employment Contract is a legally binding, form agreement between employer and employee Common Law Common Law is developed by courts and tribunals. The body of Common Law is developed by the decisions made overtime by judges. Under Common Law both parties – employers and employees – have basic obligations in any employment relationship. LEGAL INFLUENCES Minimum Wage Rates The employees base rate of pay for ordinary hours worked has been determined by The agreement made by the employer: the rate of pay can not be less than the minimum wage The national minimum wage The national minimum wage is determined by a panel of seven members of Fair Work Australia. The main objective of the panel is to establish and maintain a safety net of fair minimum wages. Minimum Employment Standards The standard covered basic rates of pay and casual loading, maximum ordinary hours of work, annual leave, personal leave and parental leave. Enterprise Agreements Enterprise agreements are collective agreements made at a workplace level between an employer and a group of employees about terms and conditions of employment Awards Awards are legally binding documents containing minimum terms and conditions of employment. These may include: Minimum wages Penalty wages Hours of work Other Employment Contracts As the nature of work changes, greater variety is occurring in the types and features of employment contracts available Individual contracts: exist when an employer and an individual employee negotiate a contact covering pay and conditions Independent contractors: often known as consultants or freelancers, undertake work for others; however, they do not have the same legal status as an employee Contracts for casual work Part Time contracts