As a business owner or manager, HR compliance is often one of those things that sits quietly in the background… until something goes wrong. Then suddenly it becomes urgent.
I recommend undertaking a quick annual HR health check that can save a lot of stress, confusion and backtracking later. It doesn’t need to be complicated — just a simple reset to make sure everything and everyone is on the same page.
Here are 8 areas that I think are worth reviewing each year to keep things running smoothly.
- Employment Contracts
Start with the basics. Make sure everyone has a signed, up-to-date contract that actually reflects the role they’re doing.
Check for:
- Current pay rates
- Accurate hours of work
- Job title is still current and reflective of the role
- Clear employment status (casual, part-time, fixed-term, etc.)
All too often I see businesses assuming that the contract put in place on day one is still relevant and current, until the employee raises “I’ve been looking at my contract and….” Let’s prevent the need for this conversation!
- Award Coverage & Classification
Employees often perform a wide range of tasks, however the award classification needs to match the duties they actually perform, their qualifications/experience and level of responsibility.
Check for:
- The correct Award coverage, typically outlined at the start of the Award.
- Accurate level/classification
- Any allowances or penalty rates that should apply
Roles change and evolve over time and so too might classifications, allowances and other conditions in the Award. For example, a team member that has taken on supervisory responsibilities may be eligible for a Leading Hand allowance. Let’s double check that!
- Annualised Salary Compliance
If an employee is on an “all-inclusive” salary, it’s crucial to make sure it still stacks up against Award entitlements. This is what is known as a Better Off Overall Test (BOOT) and is one of the most common areas where unintentional issues can creep in.
Review:
- What level / classification of the award would apply and compare the hourly rate from the award calculated out to an annual salary and how it compares to the annual salary you are paying.
- Consider overtime and penalty patterns, factoring in estimated overtime hours worked on average.
- Allowances, loadings etc. Many employers include annual leave loading into an annualised salary, if you are doing this does the all- inclusive salary compensate the employee adequately.
- Policies & Procedures
Policies shouldn’t live in a folder that no one opens. They should reflect how the business actually operates.
Refresh the essentials:
- Code of Conduct
- Bullying, harassment & discrimination
- Leave and flexibility
- Performance management
- WHS and incident reporting
It’s important to ensure company policies remain up to date with legislation and employees actually understand them.
- Position Descriptions
Roles evolve — sometimes quickly and Position Description’s should evolve too.
Update if needed:
- Duties and responsibilities
- KPIs and expectations
- Reporting lines
- Skills/qualifications required
An updated Position Description has so many benefits. It enables clarity. It drives engagement. It informs goal setting, performance management, and learning & development. It helps leaders stay focused and employees stay aligned.
- Performance & Feedback activities
No need for a complicated process. Just a consistent one.
Ask yourself:
- Are regular check-ins happening?
- Are people receiving feedback that’s actually helpful?
- Are performance concerns recorded and supported early (not months later)?
These types of conversations are great for goal setting, chatting about progress, but also about understanding how the employee views their role in the organisation, now and into the future. Seriously good insights can be gained by investing in these types of conversations.
- Training & Compliance Records
It can be easy to forget to maintain training records post sending an employee to training however these records may be called upon when you least expect, so it’s best to have them under control and up to date before they are ‘needed’.
Check:
- Induction completion
- WHS training
- Mandatory/industry-specific training
- Licences, certificates and expiry dates
- Payroll Accuracy & Record-Keeping
Small payroll errors add up and checking payroll is applying terms and conditions of employment aligned to the employee’s employment contract and the Award can prevent bigger issues later.
Verify:
- Hours worked
- Breaks
- Overtime and approvals
- Leave accruals
- Payslips and record keeping
At the end of the day, a HR health check isn’t about paperwork for the sake of it. It’s about keeping things simple, clear, and drama free. A quick yearly tune up helps you catch little issues before they turn into big ones, keeps your people feeling supported, and gives you the confidence that things are ticking along the way they should. Plus, it saves you from those “wait… how did we miss this?” moments we’ve all had at some point. A small investment of time equals compliance peace of mind. Let’s call that a win.
