HR compliance is one of those things that often feels like just another time waster and budget drain, until there is a problem. While corporate businesses have entire departments dedicated to managing policies and processes, small business owners are left to juggle compliance alongside everything else.
The good news? Staying on top of HR compliance does not have to be overwhelming. By putting a few simple systems in place, you can minimise risk, protect your business, and create a structured, fair workplace for your employees.
Here is a HR compliance checklist of ten simple things to add to your daily routine, to maintain and minimise risk.
1. Keep Accurate Records for Onboarding, Termination, and Employment Changes
Documenting key employment events is essential. Keep records for hiring, onboarding, promotions, salary adjustments, resignations, and terminations. This ensures a clear paper trail for your record keeping requirements.
2. Document Meetings and Conversations
Any discussion with an employee about performance, role expectations, or even small work-related adjustments should be documented. This could be as simple as a follow up email confirming what was discussed or a file note of a conversation, saved in their file.
3. Standardise Interview and Hiring Processes
A structured interview process helps ensure fairness and consistency in hiring decisions. Have predefined interview questions, evaluation criteria, and a clear system for assessing candidates based on skills and experience rather than personal biases. As an added bonus – templates will save you loads of time when you need them.
4. Conduct an Annual Wage Review
Review all employee wages at the same time each year to ensure they align with minimum award requirements, industry standards, and any applicable allowances. Keeping on top of wage compliance prevents underpayment issues.
5. Plan and Communicate Any Business Changes That Affect Employees
If a change in business operations impacts employees, whether it is a shift in work hours, new processes, or restructuring, there should be a clear consultation plan. Employees should be informed in advance, given the opportunity to ask questions, and allowed time to adapt to the change. It doesn’t need to be overly formal, but you should have it documented.
6. Document Any Employment Changes in Writing
Every adjustment to an employee’s role, whether it is a pay increase, new working hours, additional responsibilities, or an agreed leave arrangement, should be documented. A simple email confirmation saved to file, or a signed agreement ensures clarity and prevents future misunderstandings.
7. Have a Clear, Compliant Employment Contract for Each Employee
An employment contract sets expectations for both employer and employee. It should outline responsibilities, salary, working hours, and any conditions of employment. A well-written contract reduces ambiguity and ensures both parties are aligned.
8. Ensure Employees Have Access to HR Policies and Processes
HR policies should be documented and easily accessible to all employees. These policies provide guidance on workplace behaviour, leave entitlements, performance management, and more. Regularly reviewing and updating them ensures they remain relevant and compliant.
9. Require Employees to Acknowledge and Sign Key Documents
Miscommunication is one of the biggest risks in small businesses. To avoid misunderstandings, employees should sign key documents such as policies, position descriptions, and codes of conduct. This creates mutual clarity about workplace expectations.
10. Use an HR System to Automate and Streamline Compliance
Manual HR processes can lead to lost documents, inconsistencies, and compliance gaps. Implementing an HR system can help store important records, automate reminders for wage reviews and contract updates, and ensure documentation is well organised. The right system depends on your business size and needs, whether it is a fully automated solution for micro businesses or a structured process for growing teams. Need a hand to choose and implement the right system? Chrysallis can help
Stay Compliant Without the Hassle
HR compliance is not just about avoiding legal trouble, it is about building a well-structured, professional, and fair workplace that protects both you and your employees.
Not sure if your business is fully HR compliant? We can help you assess your current processes, identify risks, and implement simple automated systems to keep things running smoothly. Let’s start with an HR audit to see where you stand. Contact us today.