The Importance of Including a Fair Work Information Statement in Employment Contracts
When it comes to accepting a job offer and signing an employment contract, there are numerous crucial aspects to consider. Besides the essential terms and conditions, such as salary, benefits, and working hours, the Fair Work Information Statement (FWIS) is one of the critical documents to include in the employment contract. In this blog, we discuss the importance of including a FWIS in your employment contract.
What is the Fair Work Information Statement?
The FWIS is a document provided by the Fair Work Ombudsman, a statutory body responsible for promoting and monitoring compliance with applicable workplace legislation, including the Fair Work Act, 2009. The Statement outlines essential aspects of the National Employment Standards (NES), the Modern Awards, and the employer’s rights and obligations under the Fair Work Act. The statement is a legal obligation for employers to provide to new employees.
Why is the FWIS Important?
Transparency
The FWIS promotes transparency in the employment relationship. The statement sets out the legal requirements that an employer must comply with, which helps build a trustworthy relationship between the employer and employee. The FWIS provides a right for employees to be aware of their legal entitlements that must be adhered to, including hours of work, the right to request for flexible working arrangements, parental leave, and termination notice periods.
Preventive Measure
The FWIS is a preventive measure that protects both the employer and employee if an employment dispute arises. By providing the FWIS at the outset of the employment relationship, the employer informs new employees of their rights, obligations and can avoid conflict down the track. The FWIS provides employees with a formal reference to their rights. Employees may assume their rights without fully understanding them; the FWIS provides a reference point to clarify their entitlements.
Compliance
It is a legal requirement to provide employees with the FWIS when hiring new employees. Failure to do so can result in significant legal and financial implications. Underpayment of wages or the award entitlements can result in fines for the employer ranging from $63,000 to $630,000. The FWIS outlines the employment standards applicable to the employee, including where the employee is covered by a modern award or enterprise agreement.
Conclusion
The Fair Work Information Statement is a crucial document to include in an employment contract. It promotes transparency, prevents disputes, and ensures compliance with legal obligations. Employers must provide the FWIS to new employees when starting a new employment agreement. By doing so, the employer ensures that employees are aware of their rights, responsibilities, and entitlements under the Fair Work Act and the National Employment Standards. Employers safeguard themselves from legal disputes and create a trustworthy partnership with the employee from the start.
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