Taking on your first worker is a big step that turns a one-person operation into a real business. Here’s what’s involved so you get it right from day one.
Employee or subcontractor?
Getting this wrong is costly. There are real tests (the ATO and Fair Work both have them) for whether someone is genuinely a contractor or actually an employee — calling a worker a “subbie” doesn’t make them one. If you’re unsure, get advice before you engage them.
Pay rates and awards
Most trades roles are covered by a modern award that sets minimum pay and conditions. The main ones are the Building and Construction General On-site Award 2020, the Electrical, Electronic and Communications Contracting Award 2020, and the Plumbing and Fire Sprinklers Award 2020 — which one applies depends on the work and your business. Fair Work’s free Pay and Conditions Tool (P.A.C.T.) is the easiest way to confirm the right rate.
Super, tax and pay basics
You’ll need to pay the superannuation guarantee — currently 12% — on top of wages, offer the employee a choice of fund (and request their “stapled” fund from the ATO if they don’t choose one), collect their tax details and withhold PAYG tax, and report it all through Single Touch Payroll. Note: from 1 July 2026, “Payday Super” means paying super at the same time as wages rather than quarterly.
The National Employment Standards
The NES are the minimum entitlements every employee gets — maximum weekly hours, annual and personal leave, notice of termination and more. You also have to give every new employee the Fair Work Information Statement.
Workers compensation
Workers comp insurance is compulsory the moment you have staff, and it’s run state by state — icare in NSW, WorkSafe Victoria, WorkCover Queensland, and the equivalents elsewhere. Sort it before your new hire starts.
Taking on an apprentice
For an apprentice you sign a training contract (lodged through an Apprentice Connect Australia provider) and set up a training plan with an RTO. If that feels like a lot, a Group Training Organisation can employ the apprentice and place them with you as a host — they handle the wages, super and admin.
Safety first
Anyone working on a construction site needs a Construction Induction (White) Card before they start, plus your site induction. It’s a legal requirement, not a nice-to-have.