HR Management

Which HR Software Is Compliant with Fair Work Australia?

Wraps up in 11 Minutes

Author: Gavin Altus

Published On August 20, 2025

The Fair Work Act 2009 is the cornerstone of Australian workplace law – it sets out minimum standards (the NES), protects employee rights, and establishes the Fair Work Commission and Ombudsman to enforce those rules.

As an employer, staying on the right side of Fair Work is imperative. Non-compliance isn’t a minor oversight – it invites audits, fines, and even criminal penalties.

This blog explains why Fair Work compliance matters and how the right HR software – notably, Sentrient’s all-in-one Australian HR solution – can help you sleep soundly at night, knowing you’re covered.

Why Compliance Matters to Australian Businesses?

There are several reasons why compliance matters to businesses in Australia.

Legal Enforcement & Fines – The Fair Work Ombudsman (FWO) can issue infringement notices and take court action when laws are breached. Intentional wage theft has even been criminalised from 2025 – employers (and responsible individuals) face fines or jail for deliberate underpayments.
Back Pay & Penalties – Non-compliance often means hefty back pay plus penalties. The FWO can demand that employees be paid what they should have earned under awards/NES, plus slap civil penalties on top. In short: an auditing oversight today can become a six- or seven-figure liability tomorrow.
Reputation & Productivity – Beyond dollars, compliance breaches hurt your reputation and culture. Publicised wage theft or discrimination cases damage trust with staff, customers, and investors. Lawsuits and investigations distract management and devastate morale. (Nobody wants a workplace scandal headline.) Proactive compliance with a good HR system prevents these crises.
Avoiding “Audit Nightmares” – Imagine an inspector demanding your records on short notice. If your documents are a mess, you risk on-the-spot fines. A compliant HR platform turns that panic into a calm document-gathering exercise, since all records (payroll, leave, training sign-offs) are up-to-date and easily accessible.

Core HR Functions Affected by Fair Work Australia Compliance

Australian businesses must include Fair Work rules into everyday HR processes.

Here are the key HR areas where compliance is critical:

Payroll & Award Compliance

Accurate Pay Calculations – Payroll must handle minimum wages, award rates, allowances, overtime, and penalty rates without error. Mistakes on weekend rates or super contributions can trigger FWO penalties or ATO fines. (Think of each payslip as a tiny audit.)
Classification & Awards – You need to assign the correct award, classification, and pay level to every role, and keep it updated. HR software can store each employee’s award and auto-apply the right rates/penalties each pay cycle.
Automation & ATO Integration – Modern HR systems (like Sentrient) can integrate with payroll providers and the ATO to update tax tables and superannuation rates automatically. This avoids the common nightmare of “by-the-minute” government updates slipping through. Sentrient, for example, offers real-time payroll updates and secure cloud storage, making wage runs “a breeze” for small businesses.
Error Reduction – Manual payroll in spreadsheets is error-prone. A dedicated system flags discrepancies (e.g., underpayment versus award rates) before you submit pay. In short, it helps you pay correctly (and avoid the act of underpaying).

Onboarding & Training Compliance

Digital Onboarding – Every new hire needs correct contracts, tax forms, work rights checks, and required policy acknowledgments. Sentrient’s paperless onboarding automates these steps, so nothing is missed. New employees can sign documents, complete forms, and read policies online – all tracked by the system.
Mandatory Training – Fair Work and other laws require certain training (e.g., anti-bullying, sexual harassment, WHS induction). Sentrient lets you assign compliance courses to new hires automatically. The software tracks who’s completed them and sends reminders if not. (One misfiled course completion could be a legal headache; automation is your safety net.)
Policy Sign-Offs – Employers must provide key workplace policies (e.g., Code of Conduct, Grievance Procedures, Privacy, Sexual Harassment). Digital HR platforms let employees read and e-sign these policies. Sentrient logs each sign-off, proving legally that “yes, we gave them the rules.”

Leave and Absence Management

Entitlements Tracking – Australian leave entitlements (annual, sick, long service, parental leave) are governed by the NES and awards. HR software automates accruals and tracks balances to ensure no shortfalls. For example, it can automatically prorata annual leave for part-timers or apply extra personal/carer days.
Public Holidays & Regional Rules – Different states have different public holiday schedules (and even unique leave schemes like portable long service in Victoria). Sentrient’s leave module handles state-specific rules so you don’t have to memorise them. Your staff’s leave dates sync with payroll, so everyone gets paid correctly for time off.
Approvals & Notifications – When employees request leave, the system routes approvals to managers and updates records immediately. Automation prevents accidental approvals overload and ensures back-up staff are arranged. This organised workflow keeps you Fair Work–compliant by not letting any leave usage fall through the cracks.

Policies & Procedure Management

Centralised Policy Library – Fair Work compliance means having the right policies in place. A HR system (like Sentrient) includes templates for common policies and a central storage location. Updates (e.g., new workplace safety rules) propagate through the system, so you’re always using the latest versions.
Employee Acknowledgments – By giving employees digital checklists or forms, you ensure everyone acknowledges new or updated policies. For instance, if your anti-harassment policy changes, you can push a new version to all staff and get digital signatures. Sentrient logs these acknowledgments as proof for audits.
Incident & Complaints Tracking – Compliance isn’t just pre-employment; it’s ongoing. HR software can record any incidents (bullying reports, grievances, WHS incidents) and track follow-up actions. The system’s case management tools ensure investigations meet legal standards and documentation is intact if reviewed by regulators.

Record-Keeping & Reporting

7-Year Record Retention – Fair Work laws require time-and-wage records (and many other employee records) to be kept for 7 years. Sentrient stores everything digitally, so you never lose a timesheet or payslip, even if someone moves on.
Accuracy and Accessibility – Records must be accurate (no false info) and readily accessible to an inspector. The platform prevents unauthorised edits (except to correct errors, with audit logs) and produces legible records instantly.
Automated Reporting – Built-in reports (e.g., payroll summaries, leave history, training completions) let you respond quickly to Fair Work requests. Instead of scrambling through filing cabinets or spreadsheets, managers can click a few buttons to export the data. In an audit, having “ready-made reports” really means business efficiency.

Introducing Sentrient: A Trusted All-in-One HR & Compliance Solution

Rather than piecing together separate tools, Sentrient bundles HR, compliance/GRC, and policy management in one HR platform.

The tagline says it: “a simple, easy, reliable way to bring all your Compliance, GRC, and HR processes into one system”.

The best part? – Sentrient is 100% Australian-owned and operated. All data is stored in Australian servers to comply with privacy laws.

It’s built “specifically for the Australian workplace”, with content and rules that match Fair Work and local regulations. Plus, Sentrient automatically updates for legislative changes across all states and awards.

Over 600+ Australian businesses (from small NFPs to large associations) trust Sentrient to keep them compliant. Together, they support 100,000+ employees through Sentrient.

Key Features of Sentrient HR Software (Aligned with Fair Work)

Automated Payroll Readiness – While Sentrient itself focuses on HR, it integrates with payroll systems to ensure award rates and superannuation are always up-to-date. It provides real-time updates on tax and super contributions, making sure employees are paid correctly (and freeing you from doing manual pay calculations).
Recruitment & Talent Pool – Sentrient’s recruitment module helps you post jobs, track applicants, and build a talent database. It standardises application forms (avoiding discriminatory questions) and keeps records of candidates’ status, which aids in meeting fair hiring practices.
Paperless Onboarding – When a new hire signs on, Sentrient takes over the paperwork. Contracts, tax forms, and personal details are filled out and signed online. Pre-built templates and checklists mean you don’t forget a single compliance step.
Employee Self-Service Portal – Staff can log in to update personal info, view policies, request leave, and check payslips. This cuts down HR admin and puts data entry in employees’ hands (with controls). Managers love it too – no more chasing people for paper forms. Sentrient’s mobile-friendly portal means teams can handle tasks on the go (swap shifts, request leave, sign documents from a phone).
Leave & Absence Management – Sentrient’s leave system automatically applies NES entitlements. It calculates accruals (even for part-time or variable hours) and includes public holiday calendars by state. Every leave request is logged and integrated with payroll, so your records stay accurate. This automation ensures you comply with leave laws without lifting a finger.
Performance & Culture – The software includes performance management tools (goal setting, reviews, training plans). These keep a documented “paper trail” of feedback and development.
Policy & Compliance Library – Sentrient comes with a library of legally vetted policy templates and training courses. If the Fair Work Commission updates a rule, the platform updates the corresponding policy. When new content is released, employees can be automatically enrolled.
Document & Record Management – Centralised document control means every contract, qualification, accident report, and certification is stored securely in one place. Sentrient’s system enforces retention rules (so you keep those seven-year records) and locks down archived files. It also makes audits painless – the platform’s “ready-made audit reports” give you exactly what regulators want.
Automated Compliance Alerts – The system automatically sends reminders for expiring visas, training renewals, compliance reviews, and more. Missed deadlines become a thing of the past. For instance, Sentrient can alert managers when an employee’s qualification is about to lapse or when a policy needs annual sign-off.
Scalability & Ease of Use – From 1-user startups to 5,000-person enterprises, Sentrient scales to fit. Its intuitive interface means minimal training is needed – the slogan says it’s “simple, easy, reliable”. Onboarding new admins is quick thanks to built-in checklists and a library of onboarding workflows. And because it’s cloud-based, there’s no software to install or servers to manage.
Ongoing Updates & Support – Sentrient actively monitors legislative changes so you don’t have to. When new Fair Work regulations or industrial awards are gazetted, Sentrient rolls out software updates to match. This proactive approach (“We got an update, do you?”) keeps you continually compliant. Plus, you get Australian-based customer support from real people (not some overseas call centre).

Conclusion

Fair Work compliance isn’t optional – it’s a necessity for any Australian business.

The right HR software is your best ally in avoiding fines, legal trouble, and sleepless nights.

As an Australian-owned, cloud HR solution, Sentrient covers all the bases: payroll integration, onboarding automation, leave tracking, policy management, and audit-ready reporting. It’s built to mirror Fair Work rules out of the box and to grow with your needs.

Book a free demo of Sentrient today and see how it can make compliance easy for your team.

FAQs

1) Can HR software automatically stay updated with Fair Work changes?

Many leading HR systems – especially locally focused ones like Sentrient and Employment Hero – include automatic updates when Fair Work laws, Modern Awards, or employer obligations change. That means new minimum wages, penalty rates, or policy templates are pushed to your platform without manual updates. This ensures compliance isn’t left to memory or spreadsheets.

2) Do I need separate payroll software if I use compliant HR software?

That depends – some HR platforms bundle payroll; others integrate with payroll engines. Sentrient, for example, integrates with payroll providers and ensures award rates, superannuation, and tax compliance sync correctly. If your HR tool lacks built‑in payroll, choose one that connects seamlessly to compliant payroll software like Xero, KeyPay or MYOB.