Law

3 reasons why your regulations in Perth don't work

By David Miller, Compliance Specialist·January 18, 2025·7 min read

I've seen hundreds of regulations in companies in Perth and the surrounding areas. Most are dead documents that owners downloaded from the web just to have peace of mind. This is a mistake that only comes to light when an employee goes to labor court and you realize your papers have no legal power in Western Australia.

The trap of the state system in Western Australia

Most entrepreneurs in Perth think they fall under the national Fair Work system. The truth is that in Western Australia we have our own state system (WA IR system), which applies to many small businesses and partnerships. In 2024, as many as 114 local businesses we talked to applied wrong wage rates because their regulations were based on erroneous legal assumptions. This is a direct road to huge financial penalties at the first department audit.

At NeoMetrics, we don't play around with theorizing. Since the founding of the company in September 2016, we focus on what an inspector actually checks. If your regulation does not take into account the specifics of the 'State Wage Order' from July 1 each year, you are exposed to a hit. We recorded a case of a construction company from Subiaco that, due to a minor error in interpreting state regulations, had to pay 14,230 dollars in back payments to one employee. Such situations can be avoided in 3 hours of a thorough documentation audit.

The problem is that law in Perth changes faster than business owners' habits. Our statistics show that regulations older than 27 months are in 94.6% of cases inconsistent with current Industrial Relations guidelines. It's not about writing everything from scratch every month, but about having a foundation that actually works in Western Australia's reality, not in a theory from Sydney or Melbourne.

In 2024, 114 firms in Perth used wrong rates because their regulations were a simple copy from the web.
The trap of the state system in Western Australia

Legal language that no one understands

Writing regulations in complicated language is the biggest bane of bureaucracy in Perth. The average employee has a grade 9 education and has no time to analyze multi-compound sentences. If a regulation talks about 'participation in decision-making processes in the aspect of OHS', no one knows they just need to report a cracked ladder. At NeoMetrics, we focus on communication that's simply human. We write our documents at an 8th-grade level because that's when they're effective.

Analyzing 87 draft regulations in 2024, we noticed that shortening a document by half and using simple words reduces employee errors by 37% in the first 3 months. These are concrete numbers, not guesses. An employee who knows what to do works faster and less frequently generates conflicts. One company in Belmont that switched to our simplified system recorded a drop in the number of official HR inquiries from 47 to 11 per month.

Clear rules of the game mean no misunderstandings. If rules regarding coffee breaks or using business phones are written simply, the boss doesn't have to waste time on warnings. At NeoMetrics, we believe that a good regulation is one that an employee reads in 12 minutes over breakfast and remembers everything. This protects your company better than any framed certificate on the wall that only collects dust.

Ignoring new WHS regulations from March 2022

In March 2022, the Work Health and Safety (WHS) Act 2020 came into force in Western Australia. Many firms in Perth have still not updated their regulations for these key changes. The new law imposes significantly more personal responsibility on management for safety errors. If your regulation operates on old definitions, in the event of an accident, an insurer may refuse to pay compensation, which for a small business means the end of activity within 14 days.

Honestly, most business owners I meet live in blissful ignorance until the first inspection. Since March 2022, inspectors in Perth have conducted 23% more inspections than in previous years. One company we helped in 2024 received a fine of 4,720 dollars only because their regulation lacked a provision on mandatory consultation with employees on safety matters. This was a mistake we fixed in 47 minutes.

At NeoMetrics, we don't fluff about safety. We create procedures that are practical. Instead of writing about 'safety culture,' we introduce a concrete checklist for every position. This works because people like to know exactly what they have to check before starting a machine. Since 2018, we haven't had a single client whose regulation prepared by us was questioned by a labor inspector in Western Australia.

The new 2022 WHS law changed everything. Old regulations are now a sentence for the owner.
Ignoring new WHS regulations from March 2022

Remote work and the 'right to disconnect' in 2024

The year 2024 brought further revolutions in labor law, including the famous 'right to disconnect'. Firms in Perth that allow employees to work from home or contact them after hours must have this precisely regulated. Without clear rules in the regulation, an employee can accuse you of bullying or demand payment for every minute spent reading an email in the evening. We saw a case of a manager from Subiaco who won 2,340 dollars in compensation for calls after 18:00.

Setting boundaries is key to company health. At NeoMetrics, we help enter specific availability hours into the regulation that respect both sides' time. This is not just a legal issue, but an efficiency one. Research conducted among our 423 clients showed that a clear definition of rules for contact outside the office reduced staff turnover by 14.7%. People want to work where their private time is respected, but it's also clearly stated when they are supposed to be reachable.

You don't have to give up flexibility. Regulations can provide for emergency situations, but they must do so in a measurable way. Instead of writing 'the employee should be available if needed', we write 'the employee may be asked to contact in situations defined in Annex No. 4'. This gives the boss a management tool and the employee peace of mind. These are the concrete numbers and clear rules of the game we always talk about at NeoMetrics.

How to fix documents without stopping the company

Fixing regulations doesn't have to take months. At NeoMetrics, most projects close within 11 to 18 business days. We start with a short brief in which we ask about real problems in your team, not about vision and mission. If you have a problem with smokers disappearing for 15 minutes every hour, we put it in the regulation. If drivers are late with reports, we create a simple accounting system. We simply humanly solve the problems you have every day.

Costs? With us, there are no hidden fees for every photocopy or phone call. We use fixed rates for auditing and implementing new rules. The average cost of a comprehensive documentation refresh for a company employing 14 people in Perth is an investment that pays for itself after the first avoided labor dispute. One of our retail clients recovered 4.7 thousand dollars annually just thanks to better regulation of the return of service equipment when employees leave.

Finish the year 2025 with documents that actually protect you. Don't wait for Fair Work to call your door. Let's start with a short conversation about what currently keeps you up at night in managing people. Our team, stationed on Adelaide Tce in Perth, is ready to take your papers into the workshop and make sense of them. No fluff, with a concrete action plan on the table.

How to fix documents without stopping the company