1. Who these obligations apply to
  2. Pay staff correctly under the right award or agreement
    1. Confirm coverage and classification
    2. Keep records and issue pay slips
    3. Give new employees the Fair Work Information Statement
  3. Manage hours, leave and rosters lawfully
  4. Meet your work health and safety duties
  5. Insure against workplace injuries
  6. Treat people fairly: discrimination and general protections
  7. End employment lawfully
  8. Get contractor arrangements right
  9. What happens if you get it wrong
  10. A working compliance checklist
  11. When to get legal help
  12. Start with classification

Running a team in Brisbane means complying with two layers of employment law at once. The federal Fair Work system sets the floor for most private-sector workers across Australia, and Queensland adds its own rules for long service leave, workplace health and safety, workers' compensation and, since 1 January 2025, criminal consequences for deliberate underpayment. Get the basics right and compliance becomes routine. Get them wrong and you face back-pay claims, regulator investigations, and in the worst cases criminal prosecution.

This guide sets out the obligations that apply to a Queensland employer, who they apply to, and the practical steps to stay compliant. We cover award classification and pay, hours and leave, work health and safety, workers' compensation, fair treatment, termination, and contractor arrangements, then finish with a checklist you can work through this week.

Who these obligations apply to

Most private-sector employers in Queensland are national system employers, meaning they are covered by the Fair Work Act 2009 (Cth) (legislation.gov.au). That Act's National Employment Standards (NES) apply to every national system employee regardless of award coverage, and awards, enterprise agreements and contracts cannot undercut them.

Three scoping rules matter in practice:

  • Small business threshold: an employer with fewer than 15 employees is a small business employer under s 23 of the Fair Work Act. That status changes dismissal protections and some payment obligations, so count carefully, including regular casuals and employees of associated entities.
  • Award coverage: most roles in Queensland are covered by a modern award, which sets minimum pay rates, classifications, penalty rates, overtime, allowances, breaks and consultation requirements. An enterprise agreement can replace an award, but it must pass the better off overall test and be approved by the Fair Work Commission.
  • Queensland overlay: state laws apply on top of the federal system. Long service leave is governed by the Industrial Relations Act 2016 (Qld), workplace health and safety by the Work Health and Safety Act 2011 (Qld), and workers' compensation by the Workers' Compensation and Rehabilitation Act 2003 (Qld).

If you are a sole trader, partnership or other employer that is not a constitutional corporation, check which system covers you, because different rules can apply.

Pay staff correctly under the right award or agreement

Underpayment is the most common compliance failure for small and medium businesses, and it is now the most dangerous one. Paying staff correctly starts with knowing which award applies and which classification each role sits in.

Confirm coverage and classification

Do not guess award coverage. Map each role to the correct modern award and classification, then verify the base rate, penalty rates, overtime and allowances that apply. Rates are usually updated on 1 July each year following the Fair Work Commission's annual wage review, so build a process to update your payroll system when they change. Classification errors are a leading source of back-pay claims, because an employee classified one level too low can be owed years of difference.

Keep records and issue pay slips

Under s 535 and s 536 of the Fair Work Act, you must keep accurate employee records and give each employee a pay slip within one working day of paying them. Pay slips must show the details prescribed by the regulations, including gross and net pay, the rate of pay, hours worked and any deductions. Records must be kept for the period the regulations prescribe, so keep them even after an employee leaves, and if a dispute arises, the burden can shift to you to disprove an allegation you have not documented.

Give new employees the Fair Work Information Statement

Every new employee must be given the Fair Work Information Statement before, or as soon as practicable after, they start, under s 125 of the Fair Work Act. It explains the NES, awards and termination rights. Keep a record that you gave it.

Manage hours, leave and rosters lawfully

The NES sets the outer limits on hours and the minimum leave entitlements, and awards add detail on breaks, rosters and consultation:

  • Maximum hours: a full-time employee cannot be required to work more than 38 hours per week unless the additional hours are reasonable, under s 62 of the Fair Work Act. Reasonableness depends on factors including health and safety risks, the employee's personal circumstances and the needs of the workplace. Employees can refuse unreasonable additional hours.
  • Leave: the NES provides paid annual leave, personal and carer's leave, compassionate leave, unpaid parental leave and community service leave. Casual employees get an unpaid entitlement to some of these, and awards and agreements add detail on how leave is taken and when it accrues.
  • Queensland long service leave: under s 95 of the Industrial Relations Act 2016 (Qld) (legislation.qld.gov.au), an employee who completes 10 years continuous service is entitled to 8.6667 weeks of long service leave on full pay, with further accrual after 15 years. An employee who completes at least 7 years is entitled to a proportionate payment when their service ends, subject to the circumstances set out in the Act. These entitlements apply even if the employee is in the national system, so your payroll needs to track continuous service accurately, including recognised prior service on business transfers.

Meet your work health and safety duties

Queensland's WHS regime applies to every person conducting a business or undertaking (PCBU). Under s 19 of the Work Health and Safety Act 2011 (Qld) (legislation.qld.gov.au), you must ensure, so far as is reasonably practicable, the health and safety of your workers and of other people affected by your work. That means:

  • providing and maintaining a safe work environment, plant, structures and systems of work;
  • safe handling and storage of substances;
  • adequate facilities for worker welfare;
  • information, training, instruction and supervision so work can be done safely; and
  • consulting with workers on matters that directly affect their health and safety.

"Reasonably practicable" is defined in s 18 of the Act and involves weighing the likelihood and degree of harm against what you know and the cost of control measures. In higher-risk industries such as construction, manufacturing and logistics, WHS obligations are a priority from day one, and officers of the business can be prosecuted personally for failures.

Insure against workplace injuries

Queensland employers must insure against injuries to their workers. Under s 48 of the Workers' Compensation and Rehabilitation Act 2003 (Qld) (legislation.qld.gov.au), every employer must insure each worker through a WorkCover Queensland policy or a self-insurance licence. WorkCover is the exclusive provider of accident insurance in Queensland, so there is no shopping around for a cheaper private policy. If a worker is injured, the scheme covers their compensation while protecting your business from the direct cost of claims, but you still need to notify injuries promptly, cooperate with claims management and support return to work.

Treat people fairly: discrimination and general protections

Federal and state laws protect employees from discrimination, harassment and victimisation. Under Part 3-1 of the Fair Work Act, general protections prohibit taking adverse action against an employee because of a workplace right, or because of a protected attribute such as race, sex, age, disability or pregnancy. Queensland's anti-discrimination laws add further protections. The practical obligations are to:

  • keep recruitment questions focused on the inherent requirements of the role;
  • apply consistent, documented processes for promotion, performance management and discipline; and
  • train managers so they understand what constitutes discrimination, bullying and harassment.

General protections claims carry a reverse onus in some circumstances, meaning you may need to prove your reason for a decision was lawful. A contemporaneous written record of why a decision was made is your best defence.

End employment lawfully

Termination is where disputes most often start, so the process matters as much as the outcome:

  • Notice and payment in lieu: under s 117 of the Fair Work Act, an employee must receive written notice of the day of termination, and the minimum notice period is one week per year of continuous service, up to a maximum of five weeks. You can pay in lieu of notice instead, but the payment must equal the amount the employee would have earned during the notice period.
  • Redundancy pay: if a role is genuinely redundant, s 119 of the Fair Work Act requires redundancy pay based on length of service, from four weeks for one to two years of service up to 16 weeks for nine to ten years. Check whether exceptions apply, including for small business employers and transfer of business situations.
  • Unfair dismissal: an employee is protected from unfair dismissal if they have completed the minimum employment period and they are covered by an award or enterprise agreement, or earn below the high income threshold. The minimum employment period is six months, or 12 months for a small business employer, under s 383 of the Fair Work Act. The high income threshold is $175,000 for 2024-25 and rises to $183,100 from 1 July 2025 (Fair Work Ombudsman). A dismissal can be found unfair if it is harsh, unjust or unreasonable, so follow a fair process, give the employee a chance to respond, and document your reasoning.
  • General protections: a dismissal can also be challenged as adverse action taken because of a protected reason, and general protections applications must be lodged within a strict statutory time limit measured from the dismissal. Consultation obligations under the relevant award may also apply before major changes to rosters or hours.

Get contractor arrangements right

The difference between an employee and an independent contractor is a legal question, not a matter of what the contract says. In 2022 the High Court confirmed in Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1 and ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2 that the relationship is assessed by reference to the terms of the contract and the totality of the relationship, not the label the parties use.

Misclassification is costly. If a worker is really an employee, you can owe them entitlements such as annual leave, personal leave, notice and superannuation, and deliberate misclassification to avoid paying entitlements can amount to wage theft. Practical indicators of a genuine contractor arrangement include the worker providing their own tools, invoicing for results, bearing commercial risk, and having the right to subcontract. If you want control over hours, methods and performance, employment is usually the safer structure. And note that superannuation is payable for many contractors engaged principally for their labour, currently at 12 per cent of ordinary time earnings.

What happens if you get it wrong

The consequences of non-compliance are escalating and, in Queensland, now criminal:

  • Civil enforcement: the Fair Work Ombudsman can investigate, issue compliance notices, and take employers to court for civil penalties and orders to back-pay workers. Employees can also recover unpaid wages and entitlements directly, including through the small claims process.
  • Criminal wage theft: since 1 January 2025, intentionally underpaying an employee is a criminal offence under the Fair Work Act, and Queensland went further. Under the Queensland Criminal Code, deliberate wage theft, including the intentional misclassification of workers, is a criminal offence carrying up to 10 years imprisonment (Office of Industrial Relations). Honest mistakes are not criminal, but the distinction will be tested in the courts.
  • Unfair dismissal and adverse action: compensation orders can reach 26 weeks' pay, and reinstatement is possible.
  • WHS and workers' compensation: safety breaches carry substantial fines, and reckless conduct can lead to imprisonment for individuals, alongside workers' compensation premium consequences.

A working compliance checklist

Work through these items to keep your compliance current:

  • Map your workforce: list each role, its award coverage, classification, employment status and pay rate.
  • Verify pay each 1 July: update award rates, penalties and allowances in your payroll system after the annual wage review.
  • Issue pay slips on time: within one working day of each payment, and keep records for the period the regulations require.
  • Track leave accurately: including continuous service for Queensland long service leave.
  • Keep WHS current: hazard identification, training, consultation and incident reporting, with documented procedures.
  • Workers' compensation insurance: hold a current policy with WorkCover Queensland.
  • Document decisions: particularly performance management and termination, with the reasons recorded at the time.
  • Review contractor arrangements: check that the working relationship matches the paperwork, and reassess when the relationship changes.
  • Audit quarterly: spot-check a few employees for correct classification, rates, leave accruals and pay slips, and review policies when your operations change.

A lawyer is worth engaging early in the situations where mistakes are most expensive: mapping award coverage and classifications for a complex or growing workforce, drafting enterprise agreements, restructuring or making roles redundant, defending unfair dismissal or general protections claims, and restructuring contractor arrangements after misclassification is suspected. A practitioner can also advise on the interaction between federal and Queensland obligations, audit your records before a regulator does, and handle negotiations and litigation when disputes arise.

Start with classification

If you take one action this week, audit a single role against its award: the correct classification, base rate, penalty rates and allowances. Classification errors are the quietest way to accumulate a large underpayment, and since 1 January 2025 the line between a costly mistake and a criminal offence in Queensland is drawn through deliberate conduct. Every other obligation in this guide is easier to meet once you know precisely what each person in your team is entitled to be paid.