The first few months of 2010 provides employers with an important opportunity that should not be overlooked - to engage in appropriate risk management and ensure compliance with our new workplace laws.

1 January 2010 brought about the commencement of significant aspects of the Fair Work Act 2009 ("FW Act"), being the new National Employment Standards ("NES") and the operation of modern awards.

Failure to comply with minimum employment terms and conditions can prove extremely costly, particularly if there is an oversight that continues for a lengthy period. Businesses can face prosecution proceedings not only for significant amounts of back pay but also seeking penalties against them (at the maximum fine of $33,000 per offence). These proceedings can be issued by a union or by the Fair Work Ombudsman. The last 3 years have seen an unprecedented increase in the number of these prosecution proceedings, in all parts of Australia. These prosecutions can be significant revenue raisers for unions as a court can order that penalties imposed be paid direct to the union that issued the prosecution.

Given these developments, any time and money invested now to ensure compliance with minimum standards is well spent. Ideally, this should include a general health check that is not simply confined to FW Act compliance issues.

This article is available in full at Mondaq.