Answers to what owners ask most
The short answer first, then the detail and the law.
18 answers
- EmploymentCan I do unpaid trial shifts?Only in narrow circumstances. A trial can be unpaid if it's needed to see the person's job skills, involves only demonstrating those skills, lasts no longer than necessary (usually an hour up to a shift, depending on the job) and is directly supervised the whole time. Anything beyond that must be paid at least the minimum rate.
- EmploymentDo casual employees need a written contract?No. Australian law doesn't generally require a written contract for casual employees, and a verbal employment contract is valid. But you must give every new casual the Fair Work Information Statement and the Casual Employment Information Statement, and a written contract is your best record of their casual status, pay and award.
- EmploymentDo I have to pay an employee who quits without notice?Yes. An employee who quits without notice must still be paid for every hour worked, plus unused annual leave (and leave loading if they would normally get it). You can only hold back money for the notice they didn't give if their award or enterprise agreement allows it, and most awards cap that at one week's wages.
- EmploymentDo I have to pay redundancy?Usually not if you have fewer than 15 employees, counting associated entities and regular casuals. Employers with 15 or more must pay 4 to 16 weeks' base pay to eligible employees with at least a year of continuous service. Either way, the redundancy must be genuine and you must still give notice.
- EmploymentHow much notice do I have to give an employee?Under the National Employment Standards you must give 1 to 4 weeks' written notice, depending on how long the employee has worked for you, plus an extra week if they are over 45 with at least 2 years' continuous service. You can pay them in lieu of notice instead of having them work it. An award, enterprise agreement or contract can require more notice, but never less.
- EmploymentIs my contractor actually an employee?Possibly. Since 26 August 2024, the Fair Work Act looks at the real substance and practical reality of the whole relationship, including how it works day to day, not just what the contract says. If you control how, when and where they work, supply the tools, pay them for their time and they can't delegate, they are likely to be an employee.
- Getting paidHow do I write a letter of demand?A letter of demand is a formal written request for payment, usually sent after reminders have failed. It should say how much is owed and why, set a clear deadline, explain what you'll do if the debt isn't paid, and tell the reader how to pay. Keep it factual and polite, only mention steps you genuinely intend to take, and send it in a way you can prove.
- Getting paidWhat can I do when a client won't pay an invoice?Escalate in steps: check what was agreed, send reminders, call the client, then send a formal letter of demand, offering a payment plan if that helps. If the client still won't pay, you can make a claim through your state's court or tribunal, or serve a statutory demand if the client is a company that owes you at least $4,000. Don't wait too long: in most states you have six years to start court action on a contract debt.
- ContractsAre verbal agreements legally binding?Usually, yes. In Australia a verbal agreement can be a binding contract if it has the usual elements of a contract, and a court can enforce it. The catches are that some agreements must be in writing, and proving the terms of a spoken deal can be hard.
- ContractsWhat should I check before signing a contract?Check who the parties are, exactly what's being supplied, how payment works, how the contract ends or renews, who carries the risk if something goes wrong, who owns any IP, and how disputes are resolved. Once you sign, the terms are generally binding, so ask questions and negotiate first. If it's a standard form contract and you're a small business, the unfair contract terms laws may also protect you.
- Starting a businessDo I need to register a business name?You need to register a business name with ASIC if you trade under any name other than your own first name and surname (as a sole trader), all partners' names (as a partnership), or your company's exact registered name. You'll need an ABN, or an ABN application in progress, before you can register. A business name doesn't give you exclusive rights to that name; a registered trade mark does.
- Starting a businessShould I be a sole trader or a company?A sole trader structure is cheaper and simpler, but you're personally liable for all business debts and pay tax at individual rates. A company is a separate legal entity that can protect your personal assets and pays a flat company tax rate, but it costs more to set up and run and comes with director duties. Many people start as sole traders and switch once the business grows or takes on more risk.
- Selling onlineCan I add my customers to my email list?Only if they've agreed to it. The Spam Act 2003 requires consent before you send marketing emails or texts, and the ACMA says someone simply buying from you isn't enough to infer it. Ask with a clear opt-in at checkout, then make sure every message identifies you and has a working unsubscribe.
- Selling onlineDo I have to give refunds for change of mind?No. Under the Australian Consumer Law you don't have to refund a customer who simply changes their mind, unless your own policy says you will. But you must provide a remedy when a product or service has a problem, and you can't use signs or policies that say 'no refunds'.
- Selling onlineDo I need a privacy policy for my business?If the Privacy Act 1988 covers your business, yes: you must have a clearly expressed, up-to-date privacy policy. Many businesses with annual turnover of $3 million or less are exempt, but there are important exceptions. Most online businesses need one anyway, because app stores and tools like Google Analytics require it.
- Brand and IPDoes registering a business name protect my brand?No. Registering a business name with ASIC lets you trade under that name, but it doesn't give you ownership of it or stop others using a similar name. A registered trade mark with IP Australia is what gives you exclusive rights to your brand across Australia.
- Brand and IPSomeone copied my logo. What can I do?Start by working out which rights you hold. Copyright protects original logo artwork automatically, a registered trade mark gives you the strongest rights, and passing off or consumer law can help even without registration. Gather evidence first, then consider a platform takedown or a carefully drafted letter of demand.
- LeasesShould I sign a personal guarantee on a lease?Only once you understand the risk and have tried to limit it. A personal guarantee makes you personally liable if your business doesn't meet its lease obligations, so the landlord can pursue your savings, car or home. Landlords often insist on one, but you can try to negotiate a cap, a time limit or a bank guarantee instead.
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