Employer Expectations (VCE SSCE Business Management): Revision Notes

Employer expectations

Regardless of job title or role, employers have certain expectations about the characteristics and behaviours their staff will demonstrate.

Core characteristics employers value

Businesses expect their employees to display specific qualities that contribute to workplace effectiveness. These characteristics are valued across all roles and levels within an organisation.

A positive attitude is essential, as it directly influences the relationships employees build with coworkers, supervisors and managers. This attitude also affects how employees approach their daily tasks and responsibilities. Employers need staff who are punctual and dependable—people they can rely on to fulfil commitments and complete work as promised.

Being cooperative is another key expectation. Businesses function more effectively when employees work well with colleagues and contribute positively to team dynamics. Additionally, employers highly value staff who are willing to learn new skills and receptive to feedback. This openness to development helps employees improve their performance and adapt to changing business needs.

Contracts of employment

These contractual arrangements can begin in various ways. A common method involves the successful candidate signing a duplicate letter of offer and returning it to the person making the offer. Once signed, this forms the basis of the employment contract.

Types of employment arrangements

Employment contracts can engage employees in several different ways, each with distinct characteristics and entitlements.

Permanent full-time employment

Under this arrangement, the employee signs a continuing contract of employment. The standard working hours for full-time employment is 38 hours per nominal week, as stated in the National Employment Standards (NES). However, the exact hours worked will depend on the conditions specified in either the award or collective agreement applicable to the business.

Full-time permanent employees receive comprehensive entitlements including:

• Regular salary or wages
• Leave entitlements (sick and carer's leave, parental leave, compassionate and bereavement leave)
• Superannuation guarantee contributions at 10% (as of 1 July 2021)
• Long service leave entitlements that accrue for each year of employment

Permanent part-time employment

Part-time permanent employees also sign a continuing contract and receive the same employment conditions as full-time staff. The key difference is that they work fewer hours than full-time employees. All pay and entitlements are calculated on a pro rata basis, meaning they receive a proportional amount based on their working hours.

Fixed-term contracts

Businesses may engage employees on fixed-term contracts for specific purposes. These arrangements can be either full-time or part-time and are commonly used for project work or to temporarily replace employees who have taken long service leave or parental leave.

Fixed-term employees generally accrue annual leave and sick leave on a pro rata basis. Because the length of employment is finite and contractually specified (such as one year or five years), fixed-term contracts are not covered by standard termination of employment legislation.

Casual employment

Casual employees are often appointed through oral contracts (rather than written agreements) for short-term, non-regular or seasonal work. They are typically engaged and paid on a daily or hourly basis.

Casual workers do not have access to permanent employment benefits such as sick leave and annual leave. To compensate for this, their wages usually include a casual loading of between 20% and 25%, depending on their applicable award. However, casual employees who work regularly may become entitled to benefits such as superannuation and long service leave under federal and state legislation.

Independent contractors

Many businesses increasingly use independent contractors to complete specific tasks or projects without affecting ongoing staffing plans. Unlike employees, contractors operate differently:

• They negotiate their own hours of work and rates of pay
• They are responsible for paying their own taxation and goods and services tax (GST) to the Australian Taxation Office
• They must hold an Australian Business Number (ABN)
• They submit regular invoices for payment to the business
• They make their own superannuation contributions
• They are not entitled to receive leave entitlements from the business

Legal minimum standards

Employment contracts can be either written or verbal, but they cannot provide less than the legal minimum standards. These minimums are found in the National Employment Standards (NES) and any applicable enterprise agreement, award or other registered agreement. All employees are covered by the NES regardless of whether they have signed a formal employment contract.

Pay and working conditions frameworks

The contract of employment stipulates how pay and working conditions are determined. Employers have two main options for establishing these arrangements:

Modern awards

Modern awards build on the NES and cover areas including:

• Minimum wages
• Hours of work and rosters
• Breaks
• Allowances
• Penalty rates and overtime rates
• Leave entitlements
• Superannuation
• Employee representation
• Dispute resolution procedures

Modern awards also serve as the benchmark for assessing enterprise agreements before approval.

Enterprise agreements

Enterprise agreements can be tailored to meet the needs of particular businesses and differ from awards, which apply to entire industries or occupations. Key features include:

• The agreement must state a nominal expiry date, which cannot be more than four years from its approval date by the FWC
• It must include a dispute settlement procedure authorising either the FWC or an independent body to settle disputes
• It covers matters such as rates of pay, hours of work, meal breaks, overtime, consultative mechanisms, dispute resolution procedures and authorised wage deductions

The Fair Work Commission assists with the process of making enterprise agreements, deals with disputes arising under the agreements, and assesses and approves them.

Better Off Overall Test (BOOT)

Business loyalty

In the current business environment, where loyalty to a business is not always rewarded with job security, employers cannot simply expect loyalty—they must earn it. Modern workplaces show a reduced sense that businesses will look after employees long-term, which naturally leads to lower employee loyalty.

How businesses earn loyalty

Businesses that conduct themselves ethically and take responsibility for both successes and failures are far more likely to develop loyal employees. Ethical behaviour and accountability create trust, which forms the foundation of employee loyalty.

Characteristics of loyal employees

Loyal employees demonstrate several distinctive behaviours. They treat their boss as a person rather than simply as a position of power. This relationship allows them to feel confident providing honest feedback, even when it might be difficult to hear—such as pointing out that an idea may not work or that a mistake has been made.

Loyalty also manifests in how employees handle disagreements. A loyal employee will not criticise or disagree with their manager or the business in public settings. However, they expect to receive respect in return and to participate in honest exchanges of ideas in private. Once a decision has been made, they will support it whether they personally agree or not.

When loyal employees decide to leave a business, they make efforts to ensure the termination process is as painless as possible for both the business and themselves.

The role of relationships in loyalty

Employees are often more loyal to the people around them—their manager, colleagues and clients—than to the business itself as an abstract entity. When managers look out for their subordinates' best interests, provide opportunities for development and pay attention to career progression, they are more likely to earn genuine employee loyalty.

Generational differences in loyalty expectations

Australian workplaces currently consist of employees from four generational classifications, each with different expectations and loyalty patterns:

This generational diversity creates additional complexity for employers, who must develop varied strategies to meet different expectations and earn loyalty across age groups.

Terms of notice

When employees decide to resign from a business, they must provide notice to their employer. Understanding notice requirements and expectations during this period is important for both parties.

Notice period requirements

The period of notice begins when the employee informs the employer of their intention to end the employment relationship. It concludes on the last day of employment. The required notice period is specified in the legal document governing the employment—whether an award, enterprise agreement or employment contract.

Employees may choose to give more notice than formally required; however, employers are not obligated to accept extended notice. They can ask the employee to leave when the minimum notice period ends.

Working during notice

Employers expect employees to continue working during their notice period. However, employees may take annual leave during this time if the employer agrees. Accrued sick leave can also be taken during the notice period, though employers may request evidence (such as a medical certificate) to verify genuine illness.

Intellectual property and confidentiality

End of employment expectations

After the notice period concludes, employers expect:

• Return of all business property provided to the employee (such as cars, computers or mobile phones)
• Cessation of intranet access
• If the position has been filled during the notice period, a formal handover of work to the successor

These expectations ensure smooth transitions and protect business interests when employees leave.