Ignite HR | 5 Common HR Compliance Pitfalls in Aged Care

The aged care sector in Australia is under continuous reform, and with heightened compliance obligations, organisations must ensure that their HR practices are water-tight. Non-compliance can lead to severe consequences including financial penalties, reputational damage, and, more critically, diminished care outcomes.

Here are five common HR compliance pitfalls in aged care ? and how you can avoid them:

1. Misclassifying Employees

It is essential to correctly classify workers under the appropriate award. Many aged care providers operate under the Aged Care Award 2010 or SCHADS Award. Misclassifying casuals or incorrectly interpreting permanent part-time entitlements can expose employers to underpayment claims.

2. Poor Documentation of Performance Issues

Failing to formally document performance concerns can result in procedural unfairness claims during terminations. It is vital to have a consistent process that includes clear expectations, ongoing feedback, and written records.

3. Inadequate Grievance Handling

Ignoring or informally addressing grievances can be a legal minefield. Establish a structured complaint handling procedure aligned with the principles of natural justice. Ensure all staff know how to raise issues safely.

4. Outdated HR Policies

With frequent legislative updates, relying on policies from even a year ago may not suffice. Regularly review your policies to ensure compliance with the Fair Work Act, Work Health and Safety Act, and aged care-specific obligations.

5. Breaches in Rostering and Wage Compliance

Non-compliant rostering practices, such as exceeding maximum hours or not applying the correct penalty rates, are common. Use award interpretation software or seek HR/legal support to maintain compliance.

Conclusion:

Avoiding these pitfalls starts with proactive education and regular HR audits. Ignite HR offers tailored compliance reviews and policy development to help your organisation meet its legal obligations confidently.

Reference:

Fair Work Ombudsman: https://www.fairwork.gov.au/