The prevailing economic wisdom seems to be that times are likely to get worse in 2009 before they get better.  Accordingly, the Christmas break would be a good time to perform an audit and review of your workplace arrangements so that your business can be prepared in the event of an economic downturn.  Here are some tips on things to look at:

1.                 Review legal arrangements covering employees and contractors:

a.     Ensure that you know which employees are covered by industrial awards, certified agreements or ITEAs (Individual Transitional Employment Agreements – formerly AWAs) and ensure that you are familiar with the requirements of those documents, particularly in relation to wage rates, working hours and overtime requirements;   

b.     Ensure that you are complying with statutory minimum requirements for wages, hours of work and the various types of leave;

c.      Every employee and contractor should have an up to date contract or letter of employment reflecting the appropriate industrial instrument if applicable; 

d.     Ensure that appropriate time and pay records are being kept which comply with legislative requirements.  It is common for disgruntled ex employees to make complaints to the authorities about underpayment of wages and this can result in a time consuming and potentially expensive audit by the Workplace Ombudsman or state authorities;

e.     Ensure that position descriptions or duty statements are in place for all positions and are up to date and relevant; 

f.       Ensure that annual leave accruals are reasonable and that sufficient provision been made for annual leave and long service leave.

2.                 Review the practical working arrangements of your business:

a.     Are systematic overtime and over award payments being kept to a minimum?;

b.     Is the work of your business being carried out effectively and efficiently and are there improvements that can be made;

c.      Do award requirements create any practical compliance issues (particularly in relation to overtime and allowance arrangements) and are there efficiencies which can be gained but which are difficult to achieve under award requirements?; 

d.     If so, you should consider whether there is value in a legislatively sanctioned collective agreement;

e.     Are there any positions which are or may become surplus to requirements?;

f.       If so, you should ensure that you are familiar with notice and process requirements for termination of employment and consider whether your workplace is subject to additional redundancy pay requirements.  You should also consider strategies to ensure that terminated employees do not become disgruntled (eg, exit interviews and access to outplacement services) as you may need them back when economic times improve.