KEEPING UP TO DATE

Growing across state boundaries

Growing across state boundaries.

I love it when our clients are successful and growing. As a result of COVID, it can mean that they are looking flexibly about where the next employee is located as long as they are able to work remotely. Sometimes it means there is the excitement of opening a new office in a different state.

With our growing awareness of how to successfully work remotely current employees may also be looking for more affordable housing options or have elder care responsibilities that require them to relocate, permanently or in the short term.

To make life easier as you grow across borders here are our top tips:

1. WORKERS COMPENSATION: Every state has its own workers compensation. From the moment you hire your first employee in a different state, or one moves there permanently, you need to put in place the appropriate workers compensation for your business and your employees.
2. LONG SERVICE LEAVE LEGISLATION: Although not needed immediately it is important to check that our payroll system is correctly set up for the new state. Most modern payroll systems automatically handle this, but if you are not sure, ask the question early to avoid problems later.
3. CHANGE TO EMPLOYMENT AGREEMENTS: Australian employment law is (generally) federal. If your employment agreement has been appropriately drafted, you shouldn’t need to issue a new employment agreement if someone moves interstate or you start an office in a new state. If you have concerns about your current agreement please reach out for help. We can provide advice on post employment terms and conditions, legal jurisdiction and more. Most employment agreement reference the state in which any challenges will be heard. This should remain consistent with the head office location so that you can tap into your local lawyers and not need to travel interstate if a case needs to be defended.

Embracing interstate growth doesn’t need to be difficult, but you should be aware of the potential areas of risk and how to successfully manage them. Our experts are here to help. If you have any questions, please contact us.