Ask a mentor – employer obligations

• It is critical in attracting and retaining suitable employees, and for supervision and management of staff.
• Not leaving myself and my managers open for common law claims and prosecution under key legislation.
• It is critical to understand and apply in such a way that it creates, develops and maintains a functional and supportive team and cultural environment.

Do not look at things in isolation or in various parts, but look at it as part of the whole and really understand what makes each individual function and perform. Understand how everyone learns and interprets your instructions and the culture.

For many reasons: safety, retention, culture and ensuring everyone is able to perform their role in a supportive environment.

Explaining to a client that a new/current employee must work within agreed hours and to the agreed tasks set out in their job description. Additionally, employers must understand that fatigue and burnout are a very serious when it comes to the workplace—not just at work but also travelling to and from. As employers, we have a responsibility to ensure our staff are working within a safe environment.

These obligations are not simply about compliance; they are about the kind of business you are building and the people who choose to stay in it. Management can set the framework through policies and direction, but leadership is the real cornerstone because it creates genuine influence, builds ownership and helps people hold themselves accountable rather than waiting to be managed.

Whilst many employers focus on the legal minimum, genuinely understaning your responsibility for culture, development and safety is what determines whether people bring their best effort, raise issues early, and stay long term. Get this wrong and the cost shows up in turnover, disengagement and, at worst, harm. Get it right and becomes a genuine point of difference in a tight labour market.

It directly impacts business performance, not just compliance. Poor culture, unclear expectations and inconsistent leadership drive turnover, underperformance and reputational risk. Small businesses are particularly exposed. One poor hire or unmanaged issue can materially affect results. It builds trust. People stay, perform and contribute more when they know what is expected and feel safe and supported.

A 25-person business was experiencing high turnover and inconsistent performance. There were no clear role expectations, and behaviour issues were being managed informally and inconsistently. We implemented clear role accountabilities, behavioural standards and simple performance rhythms (regular check-ins, documented expectations). Within 6 months, turnover reduced, decision-making improved and the owner regained time previously spent managing avoidable people issues. The shift was less about policy and more about leading teams, cultural development, clarity and consistently.

Employers have a legal and ethical responsibility to provide compliant, fair and safe workplaces. Understanding your obligations helps protect your people, your reputation, and your business.

When employers don't understand their obligations, they can inadvertently create risks around wages, employee relations, documentation, performance management, and workplace culture. These issues can quickly become expensiv, time-consuming, and damaging.

Conversely, when employers understand and meet their obligations, they create stronger workplaces where employees know what is expected, feel supported, and are more likely to contribute positively to business success.

In addition to Fair Work Ombudsman and Fair Work Commission resources, I encourage small business owners to familiarise themselves with resources relating to workplace respect, psychosocial health, and organisational culture. These are increasingly important employer obligations and are areas where many businesses are still developing their capability. Useful resources include Fair Work Ombudsman resources and the Pay and Conditions Tool (PACT) and Fair Work Commission information and modern award guidance.

I particularly recommend:

• Australian Human Rights Commision (AHRC) Positive Duty Guidance under the Respect@Work reforms. These resources help employers understand their obligation to take proactive and reasonable steps to prevent sexual harassment, sex discrimination, hostile workplace environments, and victimisation, rather than simply responding to complaints when they occur.
• Respect@Work resourcees and guidance developed following the Respect@Work National Inquiry, including practical information for employers on creating safe, respectful, and inclusive workplaces.
• Queensland's Managing the Risk of Psychosocial Hazards at Work Code of Practice 2022, which provides practical guidance on identifying and managing psychosocial risks such as poor workplace behaviour, excessive workloads, low role clarity, inadequate support, bullying, workplace conflict, and exposure to traumatic events.
• WorkSafe Queensland's Small Business Psychological Health Toolkit, which translates the psychosocial obligations into practical actions that smaller businesses can implement without creating unncessary complexity.
• Safe Work Australia psychological health resources, which provide guidance on a risk-based approach to managing psychosocial hazards and worker wellbeing.