The Importance of Fair Work Information Statement for New Employees.
Why Every Business Must Provide the Fair Work Information Statement to New Employees.
When onboarding new employees, providing the Fair Work Information Statement (FWIS) is a legal requirement for employers in Australia. Beyond compliance, it serves as a cornerstone of transparent workplace practices. However, many small businesses may overlook this crucial step, unaware of the consequences that can arise from non-compliance. This blog explores why the FWIS is essential and the potential risks of neglecting it.
What is the Fair Work Information Statement?
The FWIS is a document provided by the Fair Work Ombudsman. It outlines key rights and responsibilities for employees under the National Employment Standards (NES), including:
- Minimum entitlements such as leave provisions and notice of termination.
- Information on modern awards and how they apply to industries.
- Details on flexible working arrangements, among other workplace rights.
Since 2019, a Casual Employment Information Statement (CEIS) must also be given to casual employees. Both documents ensure employees are aware of their entitlements from day one.
Why Is the FWIS Important?
- Legal Compliance
Under the Fair Work Act 2009, it is mandatory for every business to provide the FWIS to all employees upon commencement. Failure to do so can lead to breaches of workplace laws, exposing your business to penalties. - Empowering Employees
The FWIS equips employees with essential knowledge about their rights. This transparency fosters trust, reduces misunderstandings, and contributes to a positive workplace culture. - Reduces the Risk of Disputes
When employees are informed of their rights upfront, they are less likely to raise disputes or lodge complaints about entitlements. The FWIS acts as a reference point that ensures clarity in employer-employee relationships. - Demonstrates Professionalism
Providing the FWIS during onboarding demonstrates your commitment to fair and ethical practices. It also sets a strong foundation for compliance with broader workplace laws.
What Happens if You Don’t Provide the FWIS?
Failing to provide the FWIS can result in serious consequences:
- Financial Penalties
The Fair Work Ombudsman can impose penalties on businesses that fail to meet their obligations. These fines can be substantial, particularly for repeat offenders. - Employee Disputes
Without knowledge of their entitlements, employees may feel misinformed or exploited, leading to complaints, disputes, or even legal action. - Damage to Business Reputation
Non-compliance with workplace laws can damage your brand’s reputation. This can affect employee morale, hinder recruitment efforts, and erode trust with customers. - Increased Scrutiny from Regulators
Failing to provide the FWIS may attract further audits or investigations from the Fair Work Ombudsman, potentially uncovering additional compliance issue
How to Ensure Compliance
- Automate the Process
Incorporate the FWIS into your digital onboarding system. Many cloud-based HR platforms can ensure the FWIS is delivered and acknowledged as part of the hiring process. - Keep Updated Copies
The FWIS is updated regularly to reflect legislative changes. Always ensure you are using the latest version, available on the Fair Work Ombudsman’s website. - Educate Your Team
Train your HR staff or managers on the importance of the FWIS and their obligations to provide it. - Maintain Records
Keep a record of when and how the FWIS was provided to each employee. This can serve as evidence of compliance in case of disputes or audits.
Final Thoughts
Providing the Fair Work Information Statement is a simple yet vital step for every Australian business. It protects your business from legal and reputational risks while empowering employees with the knowledge they need to succeed. By embedding this process into your onboarding system, you can foster a culture of compliance and trust, setting your business up for long-term success.
For further assistance with automating onboarding or ensuring compliance with workplace laws, reach out for expert advice. Together, we can help your business run smoothly and sustainably!
