Employment and Service Matters
All the work that we do in the church, whether paid work or volunteer, is done to serve our Lord. However, as good stewards of our resources, we need to ensure that our church workers are properly supported and cared for. Sound processes will support your pastor and staff, assisting their ministry and helping it to flourish.
Whatever you do, whether in word or deed, do it all in the name of the Lord Jesus.
(Colossians 3:17)
Employing someone is a significant financial commitment, but it is also a commitment in terms of supporting, supervising and equipping them. There are legal requirements that must be attended to. There are also additional requirements, including being aware of and complying with current employment and workplace health and safety legislation. (See 'Employment legislation' and Workplace Health and Safety.)
Take the time to make sure you employ someone who is aligned with your mission and ministry and has the skills and personal attributes required to do the job or ensure (as best you can) that they will be able to learn new skills. Remember to commit your recruitment plans to prayer, including prayers for all candidates.
Churches should familiarise themselves with the LCA 02.01 Church Worker Service Policy and the 02.01.200 Church Worker Service Commencement Policy, both of which can be found on the LCA website on the Policies webpage.
Refer to the downloadable Employment Matters Summary to the left for the most important things you need to know and consider when employing someone.
A Pre-Employment Considerations resource covering the considerations when deciding to employ someone can also be downloaded on the left.
Why is it important to have a position description?
More efficient recruitment: A well-written position description can save you time, money and problems with your recruitment or employment process. Position descriptions are a clear and concise communication tool for relaying role requirements to applicants and framing the interview process. This will help you engage competent workers who understand the core responsibilities of the position from the start and possess the required skills, qualifications and qualities.
Role clarity: The most significant benefit of having position descriptions in place is the role clarity it provides. Church workers who know what they are there for are much more likely to be engaged with the work they're doing and with their congregation/organisation. Being clear on what they are accountable for and having a set of shared expectations with their employer sets people up for success when they move into a role.
Engagement in mission and vision: A well-drafted position aligns the church worker's role with the overall mission and vision of the congregation/organisation. This creates further engagement for people because they can see where their role fits in and how their work contributes to the whole mission and vision.
Clear expectations: Position descriptions are a great tool for communicating expectations to both the church worker and the employing body. The position description spells out what is expected in the role and provides direction on achieving successful performance and outcomes. It becomes the basis for what the church worker says yes or no to in their role. It also spells out to the congregation/organisation what they can realistically expect and ask their church worker to do.
Informed reviews: The position description is vital when it comes time for reviews. It is the starting point and foundation for performance, position and ministry reviews, which should be conducted regularly.
Relevant vocational development: A position description can also become a roadmap for relevant vocational and professional development and training. It informs choices and decisions made by both the church worker and the congregation/organisation supporting them in these areas.
Some questions are useful for congregations/organisations to discuss and work through when developing a position description. Ask yourselves:
- What is the type of position you are creating?
- How will it further your mission and vision?
- Do you have a clear picture of what you want this position to achieve?
- Does the position have a clear mission and vision? Does it fit in with the congregation/employing body’s overall mission and vision?
- Are the objectives, responsibilities, duties and expectations clear in the position description?
- Is the person encouraged to use their God-given gifts in this ministry, or are they told how to achieve their mission and vision (difference between prescriptive and descriptive)?
- Do the key responsibilities always relate to the mission and vision?
- Are there clear lines of accountability, supervision and support for this position?
There is a Position Description Commentary and Position Description Template in the downloadable Pre-Employment Considerations resource above. Templates and example position descriptions are available from Church Worker Support.
Jesus affirms that the ‘worker deserves [their] wages’ (Luke 10:7). The church is to honour and respect those who are called to serve and work among them (1 Thessalonians 5:12,13).
We honour and respect our church workers by paying them fairly and well. We also value them by taking into account both what we are asking them to do (their duties or position description) and the qualifications and experience they bring to the position.
Pastors
Pastors are not considered employees, and as such, the National Employment Standards and legislation do not generally apply to them. Pastors enter into a covenant with the body that 'calls' them to serve them. Pastors receive a stipend rather than a salary to reflect this special covenant relationship that exists between a pastor and their calling body.
Entitlements for pastors in the LCA comprise an annual stipend package, which includes amounts for housing if no manse is provided, travel and professional pastoral supervision, plus superannuation. The stipend and superannuation contributions are the responsibility of the calling body. Many pastors reside in a manse, which is the property of the calling body. Pastors are also eligible for fringe benefits. (For information on fringe benefits and superannuation, see Finance and Administration Matters.)
The current LCA Pastor Stipend Schedule can be found on the LCA Portal under resources. The Provision of Housing for Pastors Policy 02.01.300 can be found on the LCA website on the Policies webpage.
For New Zealand congregations and parishes, information on the pastor’s stipend package, including leave and other entitlements, is accessed by contacting the LCNZ office: email admin@lutheran.org.nz or phone +64 4 385 2560.
Australian lay church workers
Australian lay church workers can be employed under a number of appropriate awards, such as:
- Social, Community, Home Care and Disability Services (SCHADS) Industry Award – typically, people directly engaged in ministry activities. A copy of the award and pay rates can be found on the Fair Work Ombudsman site.
- Clerks Private Sector Award – typically ministry support, office staff, bookkeepers. A copy of the award and pay rates can be found on the Fair Work Ombudsman site.
- Hospitality Industry Award – typically camp or café employees. A copy of the award and pay rates can be found on the Fair Work Ombudsman site.
The Australian minimum wage is reviewed annually. The current minimum wage can be found on the Fair Work Ombudsman website here.
New Zealand lay church workers
The Australian Social, Community, Home Care and Disability Services Industry Award can be used as a guideline. For advice on comparable New Zealand lay church worker remuneration, contact the LCNZ office: email admin@lutheran.org.nz or phone +64 4 385 2560.
Employers and their employees must maintain accurate records of hours worked and when those hours are worked, especially for casual and part-time employees with irregular work patterns. This can help ensure that they are being paid correctly, help you meet workplace health and safety responsibilities and oversee work being done. Failure to keep proper records of employee work hours can make it difficult for both the employer and the employee to address any issues that arise.
Asking employees to keep time sheets is a good employment practice so that the employee and the employer can see when and where they are using their time. (See Time Management for some timesheet templates.)
Employees on HRS can record their hours worked on timesheets there. Contact HRS so that the timesheet function is made available for them. Instructions for filling out and approving time sheets are included in the HRS iLearn training.
Minimum hours
For church workers employed under the Social, Community, Home Care and Disability Services (SCHADS) award or the Clerks Award, the minimum shift hours are three hours. This means that even if you roster an employee for a two-hour shift, you must pay them for at least three hours’ work. For employees under different awards, please check the conditions stipulated in that award.
Overtime
Ensure that accurate records are kept of any overtime hours worked by employees. Be aware of the different penalty rates that apply for hours worked by award-based employees on weeknights and on Saturdays and Sundays under their relevant award. It is vital that employees are not underpaid for their work.
TOIL
Some awards and employment agreements allow an employee to take paid time off instead of being paid for overtime. This is also known as time in lieu, time off in lieu or TOIL. Employers and employees must mutually agree that TOIL can be accrued before it is accumulated. They must also agree on when that TOIL should be taken.
Accurately record any TOIL that is accrued. Ensure that TOIL is accrued and taken within the limits specified in the award or employment agreement. For example, under the Clerks Award, TOIL must be taken within three months of being accrued and accrued TOIL must not be greater at any time than the number of agreed hours worked per week.
For more information, refer to Fair Work Australia's information and resources on overtime and TOIL.
Breaks
Employers must ensure that employees take the rest and lunch breaks to which they are entitled. Breaks are important because they allow the brain and body to get the necessary rest and recharge. Taking breaks actually increases productivity during working hours. Not taking breaks is detrimental to employee performance and mental health.
A rest break is a ten-minute paid break that counts as time worked. Employee entitlements vary depending on their relevant award; however, generally, they are entitled to a break after three to four hours of work and two paid breaks if they work for more than eight to ten hours.
Employees who work for more than five hours are generally entitled to at least one unpaid 30–60 minute meal break (again, this will vary based on their award). Unpaid meal breaks don’t count as time worked. Note that if an employee does not get or take their meal break, they must be paid overtime for the time worked until they get a meal break.
For more information, see Fair Work Australia's information on breaks.
Management of employee hours
As a duty of care to foster employee wellbeing, it is important for employers to help employees manage their working hours. This will also help to safeguard the continuing sustainability of the role or ministry. If there is an ongoing issue with an employee working more or less than their agreed hours, a review of their workload and work patterns should be undertaken as soon as possible. (See Performance Management.)
Flexible working arrangements
The National Employment Standards (NES) include a right for certain employees to request flexible working arrangements (such as changes in hours of work) from their employer.
An employee may request a change in their working arrangements from their employer if they require flexibility because they:
- are the parent, or have responsibility for the care, of a child who is of school age or younger
- are a carer (within the meaning of the Carer Recognition Act 2010)
- have a disability
- are 55 or older
- are experiencing violence from a member of their family
- provide care or support to a member of their immediate family or household who requires care or support because they are experiencing violence from their family.
The employee must have completed a minimum of 12 months of continuous service with their employer.
Fair Work Australia has information and a factsheet on requests for flexible working arrangements.
Fair Work Australia also has a flexible working arrangements best practice guide for employers and managers.
New Zealand
An employment contract is an agreement between an employer and employee that sets out the terms and conditions of employment.
In Australia, a contract can be in writing or verbal. However, all employees are covered by the National Employment Standards (NES), regardless of whether they’ve signed a contract. (See Employment Legislation.) Employees could also be covered by an appropriate award.
The LCA strongly advises having a written employment agreement to clarify expectations, establish a shared understanding and protect both the employee and the employer.
In New Zealand, all employees must have a signed, written employment agreement with their employer. Even if they have already accepted a verbal offer for a position, they must sign a written agreement before commencing work.
An employment contract cannot provide for less than the legal minimum set out in:
- government legislation
- awards, enterprise agreements or other registered agreements that may apply.
A contract can’t make employees worse off than their minimum legal entitlements. The employment agreement must contain terms and conditions that are equal to or better than the minimum rights under law.
Employees should carefully read their employment agreement before they sign it. If there is something they are not sure about, they can take it away to think it over or ask someone for advice. If an employee wishes to make changes to the agreement, they must discuss it with their employer before signing. Employees are entitled to a copy of their employment agreement.
Types of employment
There are four types of employment arrangements commonly used for employees in the church, which are summarised here.
Full time
A full-time employee usually works an average of 38 hours each week. They can be a permanent employee or on a fixed-term contract. They are entitled to paid leave, including annual, sick and carer’s leave. They are usually entitled to written notice, or payment instead of notice, if their employer terminates their employment.
Part time
A part-time employee works fewer than 38 hours per week, but they usually work regular hours each week. They can be a permanent employee or on a fixed-term contract. They are entitled to paid leave, including annual, sick and carer’s leave. Part-time employees receive the same minimum entitlements as full-time employees but on a pro-rata basis. They are usually entitled to written notice, or payment instead of notice, if their employer terminates their employment.
Casual
Legislation regarding casual employment in Australia has changed considerably in recent times. Check the Fair Work Australia website for the most current information and a downloadable Casual Employment Information Statement, which casual employers must read and provide to all casual employees.
Fixed term (or maximum term)
Fixed-term contract employees are employed for a specific time period or task, such as a one-year contract, where employment ends when the year is up. They are different to permanent employees who are employed on an ongoing basis until the employer or employee ends the employment relationship. Fixed-term employees are usually full-time or part-time employees. Full-time or part-time fixed-term employees are generally entitled to the same wages, penalties and leave as permanent employees. An award or registered agreement may provide extra terms and conditions for a fixed-term employee.
There are limitations on the use of fixed-term contracts:
- Time limitations: a fixed-term contract can’t be for longer than two years. This includes any extensions or renewals.
- Renewal limitations: a fixed-term contract can’t be renewed or extended more than once, and its total duration cannot exceed two years.
Legislation regarding fixed-term employment in Australia has changed considerably in recent times. Check the Fair Work Australia website for the most current information and a downloadable Fixed Term Contract Information Statement, which fixed-term employers must read and provide to all fixed-term contract employees.
Employment legislation
Every employee has a legal right to minimum employment entitlements. These standards are applicable by law and designed to make workplaces safer and fairer for everyone.
Employers should be familiar with current employment legislation, their obligations and employee entitlements.
The main features of current employment legislation are minimum wage, hours worked, discrimination, health and safety, leave entitlements, redundancy and dismissal, disciplinary procedures, training and union rights.
The purpose of employment legislation is to regulate the employment relationship between employer and employee. It generally also provides a framework for resolving any disputes between employers and employees that may arise.
Fair Work Act
The Fair Work Act 2009 provides the minimum standard of employment conditions and entitlements for most employees in Australia. It sets out the rights and responsibilities of employees and employers, as well as unions and other employee organisations. It provides protection from unfair dismissal. It enables flexible working arrangements and fairness at work and prevents discrimination against employees.
For more information and a copy of the Fair Work Act and Fair Work Regulations, see: www.fairwork.gov.au/about-us/legislation
Fair Work Information Statement
Employers are required to provide every new employee a copy of the Fair Work Information Statement before (or as soon as possible after) they start their new job. The Fair Work Information Statement provides new employees with information about the National Employment Standards.
The Fair Work Information Statement has information on:
- the National Employment Standards
- leave entitlements
- the right to request flexible working arrangements
- modern awards
- making agreements under the Fair Work Act 2009
- individual flexibility arrangements
- freedom of association and workplace rights (general protections)
- ending employment
- right of entry
- the role of the Fair Work Ombudsman and the Fair Work Commission
- the Casual Employment Information Statement, which must be given to all new casual employees.
For more information and a copy of the statement, see: www.fairwork.gov.au/employment-conditions/information-statements/fair-work-information-statement
National Employment Standards
The National Employment Standards are the 10 minimum employment entitlements that have to be provided to all employees.
The 10 minimum entitlements of the National Employment Standards are:
- maximum weekly hours
- requests for flexible working arrangements
- parental leave and related entitlements
- annual leave
- personal/carer's leave, compassionate leave, unpaid family and domestic violence leave
- community service leave
- long service leave
- public holidays
- notice of termination and redundancy pay
- Fair Work Information Statement (see below).
All employees covered by the National Employment Standards, regardless of the award, registered agreement or employment contract that applies.
The National Employment Standards can be found on the Fair Work Commission website at www.fairwork.gov.au/employment-conditions/national-employment-standards
In New Zealand, a series of statutes make up what is frequently referred to as the 'minimum code'. These statutes set out the minimum entitlements of New Zealand employees.
The most important statutes applying to the labour market and to the employment relationship in New Zealand are:
- Employment Relations Act – enacts numerous core provisions on freedom of association, recognition and operation of unions, collective bargaining, collective agreements, individual employment agreements, employment relations education leave, strikes and lockouts, personal grievances, disputes, enforcement of employment agreements, the Mediation Service, the Employment Court, the Employment Relations Authority and labour inspectors.
- Wages Protection Act 1983 – sets out minimum wage rates for employees.
- Bill of Rights Act 1990 – sets out fundamental freedoms, such as freedom of association, freedom of peaceful assembly, freedom of expression and the like.
- Holidays Act 1981 – sets out minimum entitlements to three weeks paid annual holiday; five days special leave (for sickness, bereavements and the like) for each 12-month period of employment; and 11 days of public holidays per year.
- Parental Leave and Employment Protection Act 1987 – sets out entitlements of employees to parental leave (at this stage, unpaid, although there is currently a proposal before the NZ Parliament for the introduction of paid parental leave).
- Privacy Act 1993 – sets out various privacy principles, including those on the collection, use and disclosure of personal information. Personal information includes information held about employees.
- Equal Pay Act 1972 – seeks to remove and prevent discrimination, based on the sex of an employee, in the rates of remuneration paid to employees.
- Health and Safety in Employment Act 1992 – requires employers and employees to take steps to maintain a safe workplace.
- Accident Insurance Act 1998 – sets out the no-fault scheme in New Zealand whereby employees who suffer an injury at work are entitled to compensation from a state-funded insurance scheme. As a result of this scheme, employees are not able to sue at common law for compensatory damages for such injuries.
- Human Rights Act 1993 – expressly prohibits discrimination on certain stated grounds, including sex, race, family status, political opinion and the like. The ER Act expressly incorporates these prohibitions into the employment context.
For more information on NZ legislation and minimum employment rights, see: www.newzealandnow.govt.nz/work-in-nz/employment-rights
www.employment.govt.nz/#gref
An employee gets long service leave after a long period of working for the same employer.
Most employees' entitlement to long service leave comes from long service leave laws in each state or territory. These laws set out:
- how long an employee has to work to get long service leave (e.g. after 7 or 10 years)
- how much long service leave the employee gets.
Long service leave laws vary depending on your state or territory. In some states and territories, long-serving casual workers are eligible for long service leave.
See the Fair Work Ombudsman website for more information about long service leave and links to the state and territory sites.
New Zealand
Long service leave and other long service benefits are not legal requirements but may be negotiated between an employer and employee as additional entitlements under their employment agreement or workplace policies. How long an employee must work to qualify for long service leave will depend on what is agreed between the employee and employer.
The superannuation system in both Australia and New Zealand requires employers to make regular contributions into their employees’ super accounts. Superannuation is designed to help employees build up and save money for retirement.
There are laws about how much superannuation employers must pay. Ensure you are familiar with and comply with superannuation requirements for all employees.
Australia
Superannuation contributions are paid on top of an employee’s salary and wages.
As of July 2025, all Australian employees (this includes pastors in this context) must have 12% of ordinary earnings paid into their nominated super account.
Superannuation contributions must be made into a complying fund of the employee’s choice (as defined in the Choice of Funds Act 2005) in accordance with the Superannuation Guarantee (Administration) Act 1992 for eligible individuals. Superannuation contributions are calculated on ordinary time earnings. The employee should complete the Superannuation Standard Choice form to enable contributions to be paid into an existing fund. Alternatively, they may choose to join the Lutheran Super Fund.
They have the option of making voluntary superannuation contributions. Employee contributions may be salary sacrificed (i.e. deducted from pre-tax salary); however, it is recommended that they seek financial advice before salary sacrificing superannuation contributions to determine if this is the most tax-effective method for their situation. Contributions would typically be shown as 'employer' or 'salary sacrifice' contributions when remitted to the superannuation fund.
The LCA HRS will provide reports each fortnight when payroll is processed, which show the monies paid to pastors and employees. These reports will also show how much money has been withdrawn from congregational accounts for superannuation.
For more superannuation information, go to the Australian Tax Office website.
New Zealand
In New Zealand, employers are required to contribute 3% of an employee’s salary to their KiwiSaver account. As part of the onboarding process, you are required to provide the KiwiSaver Information Pack to new employees who qualify for automatic enrolment, and also to existing employees who ask for one.
Whilst KiwiSaver accounts are voluntary for employees, if an employee has one, you are required to contribute 3% of the employee’s salary to their account on top of their pay.
For more information, see the New Zealand Internal Revenue Department website.
Australia
Workers compensation is a form of insurance payment to employees if they are injured at work or become sick due to their work. It includes payments to employees to cover their:
- wages while they're not fit for work
- medical expenses and rehabilitation.
Employers in each state or territory must take out workers compensation insurance to cover themselves and their employees. Congregation or parish treasurers must ensure compliance with WorkCover for all employees, submitting annual remuneration and reconciliation reports online.
For information regarding WorkCover and workers compensation insurance for pastors, refer to the annual LCA Pastors Remuneration Schedule document.
South Australian pastors are exempt from WorkCover.
For more information on workers compensation in Australia, refer to the Fair Work website, which provides links to the different states and territories, as requirements may differ.
New Zealand ACC levies
The Accident Compensation Corporation (ACC) is responsible for administering New Zealand's no-fault accident injury compensation scheme. Everyone in New Zealand who works and owns a business has to pay levies to the ACC. The levies you pay provide cover for you and your employees if someone's injured.
For more information, see the ACC website.
Australia
In Australia, employers must ask all employees to complete a Tax File Number (TFN) declaration. An Australian Tax File Number (ATFN) form can be found on the LCA website on the Forms webpage (click on Human Resource System).
TFN forms can also be downloaded from the ATO website.
Employees earning a wage or salary are taxed directly from their pay. This is known as PAYG (pay as you go). Employers are responsible for deducting and paying PAYG income tax on their employees' behalf and must register for PAYG.
Tools and checklists to guide employers
Tax guidelines for setting up a new employee
New Zealand
Employers must register with the Internal Revenue Department (IRD) as soon as they start employing. Employers are responsible for making deductions from the payments they give to employees. They need to deduct tax from employees or contractors who receive salary, wages or schedular payments. They may also need to make other deductions, such as KiwiSaver, student loans and child support. For more information, see www.ird.govt.nz/roles/employers
Employees earning a wage or salary are taxed directly from their pay. This is known as PAYE (pay as you earn). Employers are responsible for deducting and paying PAYE income tax on their employees' behalf and must register for PAYE: www.business.govt.nz/tax-and-accounting/tax-when-you-have-employees/paye
Australia
In Australia, national and state laws cover equal employment opportunity and anti-discrimination in the workplace. As an employer, you must understand your rights and responsibilities under human rights and anti-discrimination law.
It's unlawful to disadvantage employees and job seekers in any way because of their:
- race
- colour
- gender
- sexual orientation
- age
- physical or mental disability
- marital status
- family or carer’s responsibilities
- pregnancy
- religion
- political opinion
- national extraction (place of birth or ancestry)
- social origin (class, caste or socio-occupational category)
- industrial activities (such as belonging to a trade union).
The following laws operate at a federal level, and the Australian Human Rights Commission has statutory responsibilities under them:
- Age Discrimination Act 2004
- Australian Human Rights Commission Act 1986
- Disability Discrimination Act 1992
- Racial Discrimination Act 1975
- Sex Discrimination Act 1984.
The following laws operate at a state and territory level, with state and territory equal opportunity and anti-discrimination agencies having statutory responsibilities under them:
- Australian Capital Territory – Discrimination Act 1991
- New South Wales – Anti-Discrimination Act 1977
- Northern Territory – Anti-Discrimination Act 1996
- Queensland – Anti-Discrimination Act 1991
- South Australia – Equal Opportunity Act 1984
- Tasmania – Anti-Discrimination Act 1998
- Victoria – Equal Opportunity Act 2010
- Western Australia – Equal Opportunity Act 1984.
Commonwealth laws and the state/territory laws generally overlap and prohibit the same type of discrimination. As both state/territory laws and Commonwealth laws apply, you must comply with both.
To work out your obligations, you will need to check the Commonwealth legislation and the state or territory legislation in each state in which you operate.
For more information on equal opportunity and anti-discrimination law, see the Fair Work Australia website.
A downloadable quick guide to Australian discrimination laws
New Zealand
The Human Rights Act 1993 (HRA) and the Employment Relations Act 2000 (ERA) help to ensure all workplaces are safe and fair. Both acts cover the many forms of discrimination regarding sexual harassment, employment and unjust treatment in the workplace.
While the policies mainly protect employees, they also go beyond to protect job applicants, contractors and people associated with them, such as friends, family and carers.
All employees in New Zealand are protected from unlawful discrimination in their employment. This includes discrimination on the grounds of:
- age
- race or colour
- ethnicity or national origins
- sex (including pregnancy or childbirth)
- sexual orientation
- disability
- religious or ethical belief
- marital or family status
- employment status
- political opinion
- being affected by domestic violence
- involvement in union activities.
For more information on discrimination laws in NZ, see www.employment.govt.nz/resolving-problems/bullying-harassment-and-discrimination
Effective recruitment
Every Christian has been uniquely gifted, equipped and shaped by God to serve him and others. The challenge for churches is to help people find roles where their unique gifts, abilities and qualifications can be fully nurtured, used and developed. To help people find their fit in ministry.
Without effective recruitment, the employee/volunteer, the employing body/church and their ministry will struggle in the long run.
An employee or volunteer who is not the right fit for the role can actually cause harm to the ministry and negatively impact the team members they work with. A great deal of tension, stress and damage to relationships can be caused in trying to fix things or find a solution when a placement doesn’t work well or has to end prematurely.
When it comes to recruitment, finding the right employee or volunteer for a position or ministry role is a vital part of creating and establishing a successful ministry. Effective recruiting means that the person employed for the position or volunteering in the role is the best possible candidate for it, possessing all the required gifts, skills, talents and qualifications.
The time and effort spent on setting up a position or role properly, and getting it right in the first place, is well worth it.
For more information and resources on recruiting volunteers, see 'Working with volunteers'.
To assist churches in this area, the LCA has developed an Employment Selection and Recruitment Policy 02.01.102, which can be found on the LCA website on the Policies webpage.
A good advertisement for a position should contain:
- a position title
- information about the employer
- the location of the employment
- a summary of the role’s responsibilities in everyday language (avoid jargon)
- why the applicant would be interested in the role and a vision for the role
- full-time, part-time, number of hours
- qualifications and experience required
- how to apply for the role (online application/phone call/email)
- what to include in their application (cover letter, resumé and references)
- when applications close (cut-off date for receiving applications)
- where to make inquiries and how to obtain a position description.
Ensure there is sufficient time to advertise, for people to make queries and then apply before the due date.
It is essential to discuss and determine how you will advertise the position. What medium will you use? How widely will you advertise?
You could advertise at three different levels:
- An internal notice in the church/parish bulletin
- External notices within the state to other churches, parishes and through your district communications
- Nationally, with notices in The Lutheran or on the LCA website. Church Worker Support can be utilised to circulate the advertisement.
For tips on writing a job advertisement, go to the SEEK employer website.
The interview process is a crucial part of recruitment and selection, regardless of whether you have many applicants or only a single applicant. Interviews are beneficial in providing information, insight and clarity that a written application cannot give. Even if the applicant is relatively well-known, it is still essential to interview them to determine whether they are right for the role.
- Interviews provide an opportunity for the employer to clarify and check on information included in the applicant’s CV and gather additional information that may be useful.
- The applicant has an opportunity to ask questions and receive any clarification they may need on the terms of their employment or position description. This will help them to decide whether the role is really for them.
- Answers to interview questions give insight into the character, motivation and suitability of the person for the role. They will help you determine whether the individual is an appropriate fit for the role and for your congregation or organisation.
- The interview process involves more than one person, so it transfers the responsibility for deciding who to employ from a single person to a group. A broader range of perception, opinion and discernment is included in the selection process, which helps to eliminate biases. There is also a greater buy-in to the employment procedure and a vested interest in helping the successful candidate succeed.
What does an interview process look like?
- The usual procedure is for the employer to set up a panel of people who are appropriately skilled, experienced, representative of different age groups, and gender balanced.
- The panel ranks and shortlists applicants, chooses the interview questions, conducts interviews fairly, checks with referees and ensures that records are kept of the process and their decisions.
- Once the successful candidate has been selected, notify unsuccessful candidates promptly and thank them for applying.
- Notify the successful applicant by telephone or in person and with a formal letter of offer or employment agreement. If applicable, include the call document.
- Set the starting date and installation date. These may have to be negotiated.
- Notify the CWS and HRS of the successful candidate’s name and starting date. Ensure all relevant paperwork is completed and documentation is sent to CWS and HRS as soon as possible.
Conducting an interview
Each panel member will need a copy of the position description, selection criteria and the candidate’s applications.
Arrive 15 minutes early for the first interview. Use the extra time to pray and review the plan for the interview. Decide who will lead the interview. You may choose to vary this and swap roles if there are several interviews.
The usual practice is to allow an hour for each interview (45 minutes of face-to-face time with the interviewee and 15minutes to debrief and discuss the interview afterwards). This is particularly important if there are multiple interviews. Having time and space between interviews will also allow a buffer if required.
Consider the room you will use for the interview and the room's arrangement. Aim for an environment that helps the candidate to relax and communicate freely.
When the candidate arrives:
- Welcome them and introduce yourselves. Stand to greet and shake hands with the interviewee.
- Pray for your time together.
- Provide a brief description of the interview process, the format and the timeframe.
- Ask the questions that you have selected beforehand. It is best if the questions are divided among the interview panel rather than one person doing all the talking. You may also have to ask clarifying questions as needed.
- Listen carefully and stay engaged in the discussions.
- Take notes or use a decision matrix, especially if several people are to be interviewed.
- Allow the candidate adequate time to ask questions at the end and provide additional qualification information.
- Thank each applicant for their application and time. Inform them of when you will provide the outcome and how they will be notified.
A Recruitment Interview Guide can be downloaded on the left for more detailed information and interview resources.
Induction
Our God is a welcoming God. He calls us to be welcoming, too. Not just to be welcoming in general, but to welcome your new church workers. Anyone starting in a role within your congregation or parish should always be welcomed by your leaders, other staff and members.
An effective induction, orientation or onboarding process is a good way to welcome church workers who are beginning in a new role or place, and will help set them up to succeed in that role from the outset. A well-thought-out induction can make a big difference.
The purpose of an induction is to make new pastors, staff members, volunteers and contractors feel at home in their new positions and working environment as quickly as possible, allowing them to contribute effectively as soon as possible.
A workplace induction program is to ensure new church workers receive accurate and consistent information on how to perform work tasks effectively and safely.
Church worker induction programs vary state to state, office to office, church to church; however, there are basic, fundamental induction best practices.
A good induction should:
- give a good first impression of your workplace
- inspire new starters
- set out your mission and vision for them
- inform and educate them about the history, culture and values of the LCA (see the About Us webpage on the LCA website)
- make them aware of your workplace policies and procedures, as well as relevant LCA policies and procedures.
The LCA recognises that effective induction is critical to ensure that staff can contribute to the congregation or parish’s mission and vision, are aware of their legal obligations as staff members of the church and are enabled to undertake their work roles quickly and effectively. The LCA is committed to providing induction to all new staff, and we also recognise that some elements of induction are required when staff change roles.
Preparing an induction is quite simple. The new staff member's first day should include the following.
- Introduce them to the team leader and/or supervisor (for pastors, this could be the chairperson of the congregation).
- Convey the performance standards and expectations of new staff.
- Inform them of the office/work times.
- Introduce them to other staff or team members.
- Communicate staff/team roles and responsibilities.
- Supply them with an organisational chart.
- Provide them with the layout of the office and their workstation – use a hand-drawn map that includes people's names, roles and where they sit.
- Inform them of any security issues and office access.
- Give them a tour of the site, amenities and facilities – a site map is useful here
- Cover safety procedures.
- Cover technology setup and passwords, including computers, phones, photocopiers, etc.
- Ensure the new staff member is set up on HRS and has filled out all relevant paperwork.
- Ensure the new staff member has an LCA email address and can access the LCA website, Congregational Life Hub and LCA Portal.
- Encourage the staff member to complete the HRS training as soon as possible.
- Ensure they are aware of how to access the LCA website and the relevant LCA policies and procedures.
- Ensure they have a copy of or access to your relevant workplace policies and procedures to read through.
- Read through and sign a confidentiality agreement (if applicable).
See the downloadable ‘Induction Checklist Template’ to the left.
The new staff member would have been sent a number of documents to read and complete. These would be:
- Pastor, Lay Worker or Employee details form (see www.lca.org.au/forms)
- Australian Taxation Declaration form (see www.lca.org.au/forms)
- Super Standard Choice form and/or Lutheran Super plan Choice form (see www.lca.org.au/forms)
- LCA Ethical Standards of Behaviour brochure (see www.lca.org.au/seb)
- Fair Work Information statement for employees (see www.fairwork.gov.au/employment-conditions/information-statements/fair-work-information-statement)
The new staff member should have read and completed these documents and sent them back with their signed letter of offer and/or employment agreement/contract.
This being the case, the new staff member's workstation should be set up ready to go with access to a computer, phone, the LCA and district websites, the HRS system and an email address.
The new staff member's employment pack should contain:
- personalised welcome messages – the welcome message says a lot about the personality of your congregation or parish
- copy of their signed employment contract
- copy of the position description
- staff and key leaders contact list
- vision, mission and strategic plan (if you have one)
- values or culture
- LCA overview and LCA and district website information
- relevant workplace and LCA policies and procedures
- security access – keys, alarm codes and passwords
- general information:
- office location and directions
- parking information
- public transport
- details of facilities and shops in the area
- what they should wear and the dress code
- staff meetings
- staff social events.
The nominated supervisor will provide new staff members with a local workplace induction during the first week of employment or service. This normally includes:
- job role, responsibility and requirements
- health and safety overview
- workstation, email and communication systems
- local workplace issues/customs
- working conditions, processes and procedures
- probation processes, if applicable
- managing for performance process (and annual cycle key contacts).
Part of an induction process is to closely monitor and mentor the new staff member for the first month of their employment.
Regular one-on-one meetings with the employee should be established to discuss any questions and concerns they may have, deal with role and procedural issues, and build an effective, ongoing relationship. Weekly meetings are suggested for the first few months and at least fortnightly once the employee has settled in properly.
The objective of monthly reviews during the probationary review period (if applicable) is to keep communication flowing and address any concerns, teething problems, training or accountability issues and provide clarity on priorities, early rather than leaving everything to the end of the probationary period.
Employees will feel more positive and focused about their contribution. This leads to a happier, more settled staff and a productive workplace.
The purpose of the review meeting is for the staff member and the supervisor to discuss the past weeks and highlight any areas that may need to be addressed.
Typical examples are:
- planning – or lack of
- communication
- positive attitude
- workload
- expectations and deliverables
- training
- retention
- presentation
- follow-through
- attention to detail
- adherence to deadlines.
Performance management
The LCA is committed to supporting the development of people who are equipped, both theologically and practically, for service in the church. We are also committed to supporting the pastoral care and wellbeing of all church workers. Employing bodies have a unique role in the development and support of workers serving the mission and ministry of the church.
Jesus didn’t choose his disciples and then leave them to their own devices. As he led the disciples during his earthly ministry, he modelled deep conversations, intentional coaching, relational teaching, discipline and/or admonishment when necessary. We can learn from his example.
Using the practices modelled by Jesus, we can develop practices to help us manage and support the performance and development of those serving the church.
Fair Work Australia offer some helpful free online training courses for employers: managing performance and managing employees.
The first step in any performance management is for the calling/employing body leadership to appoint or nominate a ‘supervisor’ for the church worker. These supervisors play a pivotal role in the support and development of workers serving the body. Their role is to regularly meet with the church worker, build an effective relationship with them and ensure that ongoing communication, feedback and review occur.
The following framework has been developed by the LCA Church Worker Support. A three-part process is suggested and provides an intentional, yet flexible, foundation for commencing and continuing a conversation between two people (a supervisor/reviewer and a church worker). While the goal of this framework is to encourage performance and development, from time to time, it will be necessary to discuss challenging issues, especially when an individual is not performing as expected.
This framework is only a tool to support a process, and like so many other processes, the greater the investment, the greater the reward or benefit.
The framework has four components:
- check-in conversations
- coaching conversations
- performance development reviews
- getting back on track conversations.
Each component fits together to facilitate a continuous cycle of review, reflection, development and growth. It’s not designed to become an administrative burden. Mostly, it’s based on having conversations between people working together. Most of those are not necessarily long conversations, just regular and ongoing.
See the downloadable ‘Vocational Development Review Framework and Guideline’ to the left.
Check-in conversations
Check-in conversations are short, regular discussions between a supervisor and a church worker. There doesn’t need to be a formal record kept, but either party may wish to keep some notes. Short means about 5 to 15 minutes, depending on frequency, workload and working patterns.
Frequency will depend on your circumstances, but at least fortnightly (on average) is suggested. For full-time church workers, daily or weekly may be appropriate. A quick daily check-in might be appropriate in really busy periods to help both parties keep up to date with what’s happening. The majority of these conversations will be about sharing information.
The aim of these check-in conversations is to build relationships and ensure that there are no immediate issues or roadblocks that might be hindering or limiting either party from achieving what is expected.
These are not 'checking up on' conversations. You may need those, but not here! Neither are these detailed discussions about projects you are working on – schedule time for those. These conversations do not replace the need for regular team meetings either.
Essentially, these are intentional moments for a church worker and supervisor to touch base as they work together. These short, frequent conversations provide a foundation for ongoing communication and set the scene for deeper conversations focused on coaching for improved or flourishing service.
Coaching conversations
These are less frequent but longer discussions to allow an opportunity for deeper conversations around performance. Scheduling these in advance means they are more likely to happen, especially when it’s busy. Allowing about an hour once every six to eight weeks should provide enough time to cover any concerns either party has around performance and meeting expectations of the role.
Make time to pray together. Bringing God into the conversation is always a good thing! This is why we do what we do – bringing his love to life in the world. Committing your conversation to God places the gospel front and centre, and it is a great place to start.
Again, these conversations do not necessarily have to be recorded, but either party may wish to keep notes. Supervisors should keep a note when they have raised an issue related to underperformance.
Coaching conversations are important because:
- They provide an opportunity for the church worker to review, reflect on their ministry, their plans and their priorities and discuss these with their supervisor.
- They establish a setting of open and honest communication and lay the foundation for a mutually respectful relationship.
- Concerns, challenges, barriers to performance and issues can be raised and dealt with as they arise rather than waiting for an annual performance review.
- Vocational development can be discussed, and goals set in formal development reviews can be monitored.
- Supervisors can provide more immediate constructive feedback with an emphasis on coaching than waiting until an annual review.
- Achievements can be celebrated more immediately.
As priorities change, these can be clearly communicated and clarified.
The ‘Vocational Development Review Framework and Guidelines’ to the left provides check-in and coaching conversation starters.
In the secular world, annual reviews or performance appraisals are used to measure how well employees are performing, usually against some predefined (job-related) criteria. These appraisals are typically conducted by a supervisor evaluating the performance of their employee. Frequently, these appraisals provide an annual opportunity to discuss strengths and weaknesses of performance and may be linked to determinations about salary, ongoing tenure and development or training needs. Some places do this well and others less well.
As a church, we have a unique opportunity to learn from secular systems and use this knowledge to help us develop our own practices as we seek to grow, equip and support our workers.
Setting aside a longer period of time once a year to formally review performance and development against some agreed criteria (usually from a position description or ministry plan) and set development goals for the ensuing 12 months provides an opportunity to look at the bigger picture of the church worker’s ministry and performance over time. Maintaining an annual schedule for formal development review sessions will encourage your church workers to view them as part of a normal, healthy procedure.
There should be no surprises at this formal review! If a supervisor and church worker have had regular check-in and coaching conversations, there should be no surprise for either party at this time.
Don't rush the time
Allow around one and a half hours for formal development review sessions. This gives both parties time to become comfortable in the discussion and time to work through the issues for discussion.
Listen to God and pray together
Make time to read God’s word and pray together. Bringing God into the conversation is always a good thing.
Start positively
Acknowledge the strengths and contributions of the church worker at the outset. Affirming their efforts will let them know they're valued, make them more receptive to constructive feedback, and help them enter the conversation comfortably. Approaching discussions positively and productively is an important step in building confidence in the process.
Provide solutions
Consider ways to solve problems and remedy issues. Assist church workers in finding their own solutions. They will be more inclined to adopt solutions and suggestions for improvement if they have been involved in identifying them.
Clarify next steps
Agree on new or revised goals or objectives and discuss initial steps, training and development needs or other measures. Set a timeframe for review or checking in on progress made. Make recommendations about training and development needs to be followed up on and explored.
Keep good records of the discussion and of the goals for development that are set
Maintaining review paperwork will help you build valuable records that can inform ongoing supervision, future reviews and planning. This also provides some accountability for both parties. You may wish (or need) to share review documentation with your church council (or other governing body), so ensure that both parties are comfortable with the final document that records the discussion and agreed goals.
- Using a template form (such as the ‘Vocational Development Review’ form to the left) ensures that all the main points are covered. If you use this form, the supervisor (or person leading the review) should select some key outcomes (no more than four) from the church worker’s position description or ministry plan to focus on. Once these have been selected, both the supervisor and the church worker should independently complete an assessment to identify how the church worker is tracking in that area, identify relevant strengths and think about any development that might be useful. This should be done before the meeting.
- During a meeting (allow about one and a half hours), work through the template form with a view to completing a single document that records the discussion in the meeting. Make sure you make time to talk about health and wellbeing and spiritual life. As supervisors, while these areas may be beyond your control, there is an opportunity to (sensitively) bring these areas into the discussion (especially if you have regular check-ins and coaching conversations).
- Continuing education and vocational development are a crucial part of this discussion. It is helpful to think about some long-term development plans, but the focus at this meeting is really on the next year (or two). Discuss and agree on some development goals with actions, and articulate who is going to do what and by when. Training is but one of many options.
- After the meeting, ensure that a final version of the form is completed and get both parties to sign off that it reflects the discussion. This will provide a summary of the separate assessments and agreed goals. If it needs to be shared with another group (e.g. church council or chairperson), establish the boundaries around this and agree on what will be shared and with whom. Securely store signed forms with your other records in accordance with your document storage procedures.
Schedule review check and tune up
It’s a good idea to pull out the Vocational Development Review after about six months to track progress towards goals. This could be done during one of the regular coaching conversations. If necessary, the goals set earlier can be changed. Lots of things can change in six months, especially in a dynamic, thriving ministry.
Reviewing the Vocational Development Review halfway through the year also allows the church worker to regularly review, refocus and redefine their ministry plans and priorities. It also provides additional opportunities to work on and deal with concerns, issues and problems in relation to tracking towards development goals.
Follow up
Ensure that any action points and recommendations are followed up on and enacted appropriately and in a timely way by both the supervisor and the church worker.
See the downloadable ‘Vocational Development Review Framework and Guidelines’ to the left.
Having regular check-ins and coaching conversations can set a good foundation for performance, but sometimes expected behaviour is not realised. There can be lots of reasons for less-than-expected performance.
Poor performance can occur as a result of:
- recruitment mistakes or poor job fit. If the church worker does not have the capabilities needed for the job or doesn’t like the job they are doing
- unclear expectations or job description. If the employer is not clear enough on what they want a worker to do, or the church worker does not take the time, or is not confident to ask about things they are unsure of
- a lack of or ineffective communication
- inappropriate tools or a lack of resources
- poor supervision
- not having annual reviews
- workplace culture, such as loyalties, personal relationships and conflicts of interest, can make it difficult to confront work issues. Workplace bullying may have occurred
- unrealistic expectations from leaders, for example, being expected to do too much or to complete too many tasks, means that no tasks can be completed well
- inappropriate behaviour like resisting advice or change, denying responsibility, reacting with emotion or defensiveness. This can mean minor issues escalate into bigger problems
- poor training and development
- personal issues such as family stress, physical or mental health issues, or problems with drugs or alcohol.
Conversations about getting back on track
Having conversations about less-than-expected performance can be difficult, but they are an essential part of work. Having difficult conversations sooner (rather than later or not at all) is kinder than letting less-than-expected performance continue until it becomes a big problem. If there are regular conversations about performance happening, it will be easier to initiate a difficult conversation.
- Try to create a relaxed and non-threatening atmosphere as you begin a discussion about the level of performance.
- Ask questions about what may be contributing to the performance being exhibited. It might be due to things beyond the church worker’s control. Is the equipment letting them down, or is someone else letting them down? How are things at home? Are their health or family problems an issue? As their supervisor, you may be able to influence some of the challenges preventing them from performing at the level you expect. You may be doing something that is inhibiting their performance, so be honest about your role in their performance.
- Make sure the church worker understands the level of performance that is expected. Seek their input to clarify the expectations. Explore together some suggestions to improve performance.
- Set some realistic, achievable targets and then check in more regularly to see how they are going. You need to give the church worker time to make adjustments to their work and improve. Don’t try to tackle lots of issues at once. Pick the most important issues and work through these first.
- It’s important to keep good records of these conversations.
- Please take note of improvements and efforts made to achieve targets. Encourage your church workers’ attempts and efforts toward the improvement target. Acknowledge the achievement of targets and monitor performance to help things stay on track.
Fair Work Australia provides useful information and templates for managing underperformance.
Checklist and resources for ‘Raising your problem in the workplace’
Fair Work Australia offers free ‘Difficult conversations in the workplace’ courses and resources:
If performance doesn’t improve after conversations about getting back on track, there may be some difficult decisions to make.
You will not normally instigate a formal process to deal with unsatisfactory performance unless the employee was clearly informed that their performance was not meeting expectations, told what the expectations were and given opportunities to improve, but did not do so.
It is important to keep records of when meetings were held, what the employee was told, the opportunities the employee was given to develop and meet expectations, and what occurred following monitoring. Having good records showing attempts made to work on improving performance may be required to justify decisions about continuing or ending employment.
If performance hasn't improved and the employee hasn’t changed their behaviour, you will need to consider:
- if another meeting with the employee would be useful
- changing the church workers' duties (if appropriate) or providing additional training
- issuing a first or subsequent warning
- if you have clearly explained the possible consequences of not improving, including if termination is a possibility.
Termination should only be considered as a final resort, and is not a frequent occurrence. Contact LCA Church Worker Support for assistance.
If an employee is terminated, the employer needs to make sure the employee is:
- not being unfairly dismissed
- given the right notice of termination
- given the right final pay.
Ending employment
Employment can end for many different reasons. Employment can be ended by either the employer or the employee. An employee may resign or retire, or they can be dismissed by their employer or made redundant.
However it ends, it’s essential to follow the legal requirements for dismissal, notice and final pay, as well as have a good exit process.
When a church worker leaves, it is important for church leaders/employers to do their best to ensure they finish well. This will have a positive impact on both your church and the church worker.
The LCA offers a Church Worker and Family Wellness and Support Program. See the Wellness and Support Program webpage for more information.
The Australian Fair Work Ombudsman website provides further information, resources and videos on ending employment, including a Notice and Redundancy Calculator.
For more information on retirement, see 'Preparing for retirement'.
Notice
Appropriate notice must be given by the employer or the employee if they are employed full-time or part-time. Employees must give notice when they resign or retire. Employers must give notice if they terminate the employment or make the employee redundant.
A notice period is the length of time that an employee or employer must give to end employment and should be included in the employment agreement. The minimum amount of notice is based on how long the employee has been working for the employer.
An employee can continue working until the end of the notice period, or the employer may give them a payment in lieu of notice and have them finish immediately. The minimum notice periods are indicated in the table below. While this is the minimum, there may be variations of this in individual employment agreements that increase the amount of notice required.
| Period of continuous service | Minimum notice period |
| 1 year or less | 1 week |
| More than 1 year – 3 years | 2 weeks |
| More than 3 years – 5 years | 3 weeks |
| More than 5 years | 4 weeks |
An employee who is over 45 and has at least 2 years of continuous service receives an extra week of notice. These employees do not need to provide this additional notice if they resign.
Notice does not have to be given for casual or fixed-term employees finishing at the end of their term.
For more information, see www.fairwork.gov.au/ending-employment/notice-and-final-pay
Final pay
Final pay is what an employer owes an employee when their employment ends. An employee should get the following entitlements in their final pay:
- outstanding wages for the hours they have worked, including penalty rates and allowances
- any accumulated annual leave, including annual leave loading if it would have been paid during employment
- if it applies:
- accrued or pro rata long service leave
- payment in lieu of notice
- redundancy pay.
Personal/sick and carer’s leave is not paid out when employment ends.
For more information, see www.fairwork.gov.au/ending-employment/notice-and-final-pay/final-pay
Termination of employment due to poor performance
The employer must give the employee a reason why they are at risk of dismissal. The reason must be a valid reason based on the employee’s conduct or capacity to do the job. The employee must be warned verbally or preferably in writing that they risk dismissal if there is no improvement.
The employer must provide the employee with an opportunity to respond to the warning and give the employee a reasonable chance to rectify the problem, taking into account the employee’s response. Rectifying the problem might involve the employer providing additional training and ensuring the employee knows the employer’s job expectations. See Performance Management for more information on this area.
Unfair dismissal is when an employee is dismissed from their job in a harsh, unjust or unreasonable manner.
Instant dismissal
An employer may dismiss an employee without notice or warning when the employer believes on reasonable grounds that the employee’s conduct is sufficiently serious to justify immediate dismissal.
The Fair Work Regulations define 'serious misconduct' as:
(a) wilful or deliberate behaviour by an employee that is inconsistent with the continuation of the contract of employment
(b) conduct that causes serious and imminent risk to:
(i) the health or safety of a person
(ii) the reputation, viability or profitability of the employer's business.
The regulations also list the following conduct as being deemed serious misconduct:
(a) the employee, in the course of the employee's employment, engages in theft, fraud or assault
(b) the employee being intoxicated at work
(c) the employee refusing to carry out a lawful and reasonable instruction that is consistent with the employee's contract of employment.
Employment agreements may also spell out additional grounds. In such circumstances:
- The employer will have to establish that the employee has, in fact, engaged in serious misconduct.
- The employer will still need to follow a certain procedure to afford the employee natural justice.
For further information on termination for serious misconduct, including steps that must be taken, see www.fairworkcentre.com.au/newsblog/Employer-Tips/Termination-for-Serious-Misconduct
Redundancy
Redundancy happens when an employer either:
- doesn't need an employee’s job to be done by anyone
- becomes insolvent or bankrupt.
It is important to ensure it is a genuine redundancy and not related to performance management. When an employee's redundancy is not genuine, the employee may be able to make an unfair dismissal claim.
A genuine redundancy is when:
- The person’s job doesn't need to be done by anyone.
- The employer followed the consultation requirements in the award, enterprise agreement or other registered agreement.
A dismissal is not a genuine redundancy if the employer:
- still needs the employee’s job to be done by someone (e.g. hires someone else to do it)
- has not followed the relevant requirements to consult with the employees about the redundancy under an award or registered agreement
- could have reasonably, in the circumstances, given the employee another job within the employer’s business or an associated entity.
Where there is a genuine redundancy, the employer must make a redundancy payment determined by the employee’s years of continuous service. There is a redundancy calculator on the Australian Fair Work Ombudsman website.
| Period of continuous service | Redundancy pay |
| At least 1 year but less than 2 years | 4 weeks |
| At least 2 years but less than 3 years | 6 weeks |
| At least 3 years but less than 4 years | 7 weeks |
| At least 4 years but less than 5 years | 8 weeks |
| At least 5 years but less than 6 years | 10 weeks |
| At least 6 years but less than 7 years | 11 weeks |
| At least 7 years but less than 8 years | 13 weeks |
| At least 8 years but less than 9 years | 14 weeks |
| At least 9 years but less than 10 years | 16 weeks |
| At least 10 years | *12 weeks |
* There is a reduction in redundancy pay from 16 weeks to 12 weeks for employees with at least 10 years of continuous service.
For more information on redundancy, see www.fairwork.gov.au/ending-employment/redundancy
Consultation
All awards and registered agreements have a consultation process for when there are major changes to the workplace, such as redundancies.
The consultation process sets out what the employer must do when they decide to make changes that are likely to result in redundancies. This must be done as soon as possible after the decision has been made to make these changes.
Consultation requirements include:
- notifying the employees who may be affected by the proposed changes
- providing the employees with information about these changes and their expected effects
- discussing steps taken to avoid and minimise negative effects on the employees
- considering employees’ ideas or suggestions about the changes.
In New Zealand, there are several ways in which employment relationships may be ended:
- Resignation: Resignation is the process by which an employee gives notice to their employer of their intention to stop working for the employer.
- Abandonment of employment: An employee may have abandoned their employment when they are absent from work for an extended period of time without explanation. Not all unauthorised absences are abandonment.
- Constructive dismissal: A constructive dismissal is where an employee feels they have no choice but to resign.
- Retirement: An employer cannot force an employee to retire except in very limited circumstances.
- Dismissal: An employer may end their employee's employment via a 'dismissal', e.g. for misconduct or redundancy, but a proper process must always be followed.
- Redundancy: An employer must follow a fair process whenever they want to make an employee redundant.
Giving notice
To end an employment relationship, notice must be given by one party (the employee or employer) to the other party.
An employer must inform their employee in advance when the employer is going to end the employee’s employment (unless the employer is going to dismiss the employee without notice for serious misconduct). This gives the employee a chance to find alternative employment.
An employee must inform their employer in advance when they want to leave employment; this gives the employer a chance to prepare for the employee's leaving.
- The employee gives the required notice:
If the employee gives the required notice, the employer must pay the employee to the end of their notice period. If the employer asks the employee not to work the full notice period, the employer must pay the employee instead of notice. Payment instead of notice can only be made if it is in the employment agreement or is mutually agreed upon between the parties. If the employee asks the employer to waive all or some of their notice period, and the employer agrees, the employer won’t need to pay the employee for this time.
- The employee doesn’t give the required notice:
If an employee gives less than the agreed-upon amount of notice, the employer doesn’t have to pay the employee for time after the last day they actually worked. The employer may also be able to deduct pay in lieu of notice from any amount already owed to the employee.
Dismissal
If an employer wants to dismiss an employee, they must follow some general principles of fair process. Employers who want to dismiss an employee have to:
- act in good faith
- have a good reason
- follow a fair and reasonable process
- have an open mind when dealing with problems so that they ensure outcomes are not pre-determined.
If the employer doesn’t follow the above, the employee may be able to take a personal grievance claim against the employer.
The following are reasons why an employer may want to dismiss an employee:
- serious misconduct
- repeated misconduct
- performance issues
- during a trial period
- redundancy
- incompatibility
- incapacity.
If an employee is dismissed and was not in a trial period, they have the right to request a written statement containing the reasons for dismissal. This request can be made up to 60 days after the dismissal. The employer must provide the written statement within 14 days of such a request. If the employer fails to provide this written statement, the employee may consequently be able to raise a grievance after the required 90-day limitation period.
Where dismissal is in relation to a trial period, the employer must explain if asked, but this can be verbal under a trial period.
Redundancy
Redundancy is when an employer reduces their workforce because a position or positions are no longer needed. Because it’s the position that is no longer needed (not the employee), the redundancy is very likely to be unjustifiable if an employee loses their position and is replaced by someone else in the same position.
An employer must follow a proper and fair process, and all redeployment options must be exhausted before any positions are made redundant. The reasons for the redundancy must be genuine.
Reasonable notice of redundancy must be given. However, all employees whose employment is ending due to redundancy must be given notice in terms of the employment agreement. An employer can require an employee to work out their notice.
Employers cannot make someone redundant without first going through the Workplace Change Process. This involves seven steps:
Step 1: Document your business case
Step 2: Document your proposal
Step 3: Present your proposal to employees
Step 4: Gather feedback
Step 5: Genuinely consider the feedback
Step 6: Confirm the new structure – in writing and via a meeting or technology
Step 7: Implement the change – and keep talking with your staff.
See Employment NZ for more information on the Workplace Change Process: www.employment.govt.nz/workplace-policies/workplace-change/workplace-change-process-outline
Final pay
When an employee is leaving employment, their employer must calculate their final pay. An employer and employee can agree that the final pay will be made on the employee's last day of work. Employees should receive their final pay on the pay day for their final period of employment at the latest.
An employee’s final pay must include:
- payment for all the hours worked since the last pay until the end of employment
- payment for annual holidays, public and alternative holidays owing
- any additional lump sum or other payments owing. These may be included in the employment agreement or negotiated as part of a leaving package.
Any authorised deductions can be taken from the final pay.
If an employee does not receive all the components of their final pay that are owing, they may have a claim for unpaid wages, holiday pay or other breach of their employment agreement.
Redundancy compensation
Whether employees receive redundancy payments is dependent on the applicable employment agreements and is a matter for negotiation between the parties. If an employment agreement mentions redundancy pay, the employer must pay for the redundancy. However, if an employment agreement doesn't mention any such clause, an employee isn't legally entitled to redundancy pay.
Check the Employment NZ website for further information and resources: www.employment.govt.nz/ending-employment
Business NZ offers information and a range of resources: www.business.govt.nz/hiring-and-managing/ending-employment
Exit interviews or some form of debriefing are generally conducted when a church worker has resigned, retired or accepted another call. They may also be undertaken when an individual has been dismissed or made redundant. The exit interview process has proved to be valuable and beneficial for both the church worker and the church/employer
Why exit interviews?
- Exit interviews are one of the most widely used ways to gather feedback from workers about why they are leaving, what has worked well, what has not worked well and ideas for improvement. They offer the opportunity to discover exactly what the person who is departing truly thinks, which, in some circumstances, may be difficult to ascertain.
- Effective exit interviews can help the congregation, parish or employer discover ways to repeat good experiences and avoid or improve on bad ones for future church workers.
- Through the interview process, the church/employer can retain some of the worker's knowledge and experience. Valuable information is gained, which will be of great assistance to anyone else taking on that role or a similar role in the future, and in the interim, in the case of a vacancy.
- An exit interview also allows the church/employer the opportunity to engage with those who may be leaving on bad terms. It can provide a healthy avenue for workers to raise issues or concerns to be discussed and hopefully resolved. The interview process will leave them with the feeling of having been heard and possibly with a more positive view of their church/employer. These interviews can be more complex and might be conducted by a third party.
- When used wisely and correctly, the feedback from the exit process can be an effective and practical tool to help the church or employer review, learn, grow, and ultimately move forward and develop the ministry to its full potential.
- By examining and monitoring the outcomes of exit interviews over time, congregations, parishes or employers can also begin to identify trends and patterns.
When should they occur?
It is best to organise face-to-face interviews before a church worker leaves. These often result in more productive conversations. Ideally, the interviews should be scheduled at the very end of an employee’s time, during the last week of their employment.
If it is not possible to organise a face-to-face interview, it could be done over the phone or via a video call. The worker can also be asked to fill in and return the Review and Feedback Exit Interview form as soon as possible after they’ve left.
In some cases, it may be beneficial for a third ‘outside’ person to conduct the exit interview, especially when a situation is difficult or the church worker is not leaving on the best of terms.
Exit interview resources
Two resources have proved to be very effective. They can be used in various ways based on your circumstances and the needs of your church worker.
These resources can be used as a two-step process, particularly when the church worker needs to have an initial personal exit debrief with someone before the more official role review and feedback exit interview.
Where relationships and communication have been healthy and ongoing, you may choose to go straight to the role review and feedback exit interview.
In some cases, a personal exit debrief and/or a role review and feedback exit interview is not possible for some reason. In these instances, it is still valuable and worthwhile for the church/employer leadership to work through the exit considerations with lay workers questions and discussion starters for church leaders/employers.
1. Personal exit debrief (see to the left)
The church worker and their supervisor (or other appropriate person) meet one-on-one to debrief, review and reflect.
This exit debrief is confidential and one-on-one between the church worker and their supervisor or other appropriate person. The person they debrief with should be someone the church worker trusts and who they can safely ‘download’ to, but who can also help them filter what needs to be passed on. Ideally, they should be someone who will follow up with the church worker if required afterwards.
The church worker has a valuable opportunity not only to discuss things with someone else but also to work through what should be shared and how it should be shared. The aim is to determine what constructive information is provided to congregational or employer representatives at the review and feedback exit interview to be passed on as needed.
The review and feedback exit interview sheet can be completed during this time with agreed-upon responses that the church worker is happy to have provided to church or employer leadership.
In some cases, this exit interview may be all the church worker is willing or able to participate in. In this instance, the information they are willing to share must be respected, valued and used appropriately for review and future planning by the church/employer leadership.
2. Role review and feedback exit interview (see to the left)
The church worker and their supervisor/debrief person meet with the pastor/staff representative and church/employer representative/s to review the role.
The focus is on the role, not the person. The purpose of this interview is for the church worker to offer constructive feedback and reflection that may benefit the church/employing body in future employment and assist in maintaining or developing the role and ministry. This is also a chance for church leaders to ask any clarifying questions about the feedback and reflection.
The aim is to learn from the church worker’s experiences and to gather information that will help leaders to improve the working environment and further the ministry.
Apart from doing your best to ensure that your church worker exits well, this is also a time to review the role and the feedback from the exit process and plan for the future.
The focus here is on the future of the position and the ministry. When a church worker leaves, there is a unique opportunity to re-evaluate and reflect, as well as look at possible new directions. You have the opportunity to refocus the ministry role and make changes and improvements if needed. No position or ministry should simply be continued without a proper review process.
The questions and points below are matters for consideration and starters for discussion that will assist church leaders/employers in the exit process for a lay church worker. You may think of others.
See Pastor Calls for information on the 'Saying Goodbye' process for pastors.
1. Farewell, saying goodbye to a lay church worker
- How will you do this?
- Farewell service – farewell rite 'Church Rites and Resources' book
- Other appropriate farewells and celebrations
- Thank-yous/presentations, e.g. certificate of acknowledgement, card or gift
- What exit interview process will we use (see Exit Interviews)
- Accepting that people might feel let down by the church worker's departure. How can we manage this so that it does not affect our ministry or membership?
2. Looking back on the role over the years (not the church worker)
- Does the ministry role still fit in the mission and vision of the church/employer?
- Is the role still achieving what it is supposed to?
- Has the role changed or grown?
- Should the position description be re-evaluated?
- Has there been growth in the ministry, and can this be maintained? How?
- Could we improve the support given to the church worker, e.g. in supervision, help with the position, ministry teams, committed support people, prayer partners, mentors, finding extra employment if not a full-time position, ministry budget or expense reimbursement, help with accommodation, etc?
- Do we need to evaluate ourselves to determine why things haven’t worked out with this role, or why we aren’t keeping on church workers?
- Are we still meeting our budget for this role?
3. The future or where to from here? Will we continue the role and re-employ or not?
Ceasing the role:
- Has the role reached or fulfilled its intended purpose?
- If the role ceases, will the current ministry continue? Will it grow?
- If the role ceases, who will have oversight/leadership/responsibility of the ministry area?
- Should we consider creating a new or different role that better reflects where our ministry is going or growing, or where we want it to grow and develop?
Continuing the role:
- If the role continues, do we as a church/employer really own this position?
- If the role continues, do we have a clear intended purpose?
- Is there a clear mission and vision for the future of the ministry/role in line with the mission and vision of the church/employer?
- Is this all reflected in the current position description?
- Does the position description need to be altered or updated?
- Have we taken on board the relevant feedback, and are we prepared to make necessary changes and improvements to employment conditions and support?
- Should we wait until the church worker leaves before advertising?
- Should we call this church worker?
Taking time out:
- Do we need to take some time to seek God on this and review the role and the ministry?
- Do we need an overall review of the mission, vision and all our ministries, including this role?
- What are the advantages or disadvantages of waiting before you re-employ/find a replacement?
- How will the current ministries supported by this role be sustained in the interim?
- New lay church worker: (See Effective Recruitment for more information)
- Do we want someone with experience or not?
- Are we prepared to train someone?
- Do we have the budget to maintain this role?
- Are we prepared to allow and encourage the new church worker to use their unique gifts and abilities and develop the role appropriately? (People will make comparisons, but they will be different even if the role is the same.)
- Have we taken on board the relevant feedback and made the necessary changes and improvements to employment conditions and support?
Preparing for retirement
It’s easy to put off thinking about retirement when reaching retirement age seems like a distant dream, but as each year passes by, it starts to become more and more of a reality.
The first step is to talk to your super fund and/or a financial advisor who will provide you with a step-by-step guide to retirement planning, which involves:
- understanding what your retirement needs are
- planning your superannuation strategy
- understanding your retirement picture
- knowing how debt affects your retirement planning
- putting the plan into action.
This process and the steps to take are crucial parts of designing a retirement plan that ensures you will not worry, but more importantly, provides you with peace of mind.
We will cover a few considerations and provide some suggestions that you can implement to help you prepare for your retirement. It’s never too early to think about your retirement.
To the left is a retirement planning checklist of things to put in place starting 15 years out from retirement.
Knowing where you stand financially and the goals you would like to achieve in the future will make planning for retirement much easier. That’s why we recommend developing your retirement plan as an essential part of your overall financial plan.
But before you do either, it’s important to ask yourself some tough questions when it comes to your retirement:
What does it cost you to live your preferred lifestyle?
This question is one of the pillars of your retirement plan and will give you a crystal-clear view of exactly how much you’ll need to live your dream retirement. In order to answer this, monitor your current expenses to gauge how much it would cost to maintain a comfortable lifestyle.
Consider your family circumstances. Are you supporting children financially or otherwise? Where are your children and grandchildren located? How close do you want to be to them? Where would you prefer to live upon retirement?
How can you control your costs?
Once you have a big-picture view of your current financial position, it’s time to figure out if there are things you can do now to improve your financial future. For example:
- Instead of paying monthly rent, you could plan to purchase and pay off a property so you won’t have to pay rent in retirement.
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If you own your home, consider installing solar panels to eliminate electricity costs by the time you retire.
- Small expenses can add up quickly, and money spent now cannot be spent again. For example, two cups of barista-made coffee cost around $10.00 per day. If you drink 8 cups a week, that’s $40 per week, 52 weeks per year, and that’s $2,080 per year. Two cups a week costs $10, a saving of $1,560 a year – more than $15,000 over 10 years.
What extra expenses should you plan for?
Whether you decide to remain in your own home or sell it and relocate, work out what renovations, major repairs or maintenance you will need to do. Do you want to build a workshop or shed, or clear a space for planned retirement activities?
Consider whether your car will need to be replaced and what kind of vehicle you will need in retirement. Do you plan to buy a caravan?
Do you plan to undertake any international travel?
What is your risk tolerance?
This question is the cornerstone of all investing, another essential component of your retirement plan. Consulting a financial advisor about diversifying investments is essential in retirement planning.
What is your timeline to retirement?
While it may not seem important at first glance, your timeline to retirement – or how long is left between your current age and the age you’d ideally like to retire at – can have a large impact on how your retirement plan is structured.
You may be unsure about where to start when figuring out your specific timeline to retirement. Your super fund and/or a financial advisor can help you clarify your retirement goals and identify what path can help you achieve them.
For more information on retirement planning, visit https://moneysmart.gov.au/plan-for-your-retirement
When it comes to preparing for retirement, the most important part is financial planning.
Some of the retirement planning mistakes that are made include:
- failing to plan for your financial future
- not having a budget
- not talking with your super fund advisor
- not contacting a financial advisor to talk over your options.
How much money will I need for retirement, and where will I get it?
Industry figures show that individuals and couples around age 65 who are looking to retire today need an annual budget of $43,317 and $60,977, respectively, to maintain a comfortable lifestyle (assuming they own their home outright and are in relatively good health).
These figures are helpful when thinking of retirement planning strategies. Consider how you want to live your life in retirement and calculate any potential income sources. This could include things such as a superannuation fund, government entitlements, investments, savings or an expected inheritance.
How and when will I access my super?
Contact your super fund. Your superannuation plan can make a big difference to your financial planning for retirement, so it’s handy to have an idea of when you can (and will) access your super.
The more you can put into your super before retiring, the more money you’re likely to have when you retire. And, if you invest some of your before-tax income into super (known as salary sacrifice), these amounts will generally be taxed at 15%, which is lower than the tax most people pay on their employment income. Keep in mind that even if you’re 65 or over, you may still be able to continue to make contributions to your super to fund your future retirement as well.
Will I be eligible for government entitlements?
If you’re thinking about retirement planning in Australia, there are some government payments that you may be eligible for. Along with your savings, government benefits such as the Age Pension, Carer’s Allowance and Disability Support Pension could be an important part of your retirement income.
Will I be entering retirement debt-free?
When planning retirement, consider whether you’ll be carrying debt into retirement, and think about ways to reduce it sooner rather than later.
Some things that could help reduce debt:
- Work out your debts and what they total.
- Do a comparison of what you earn, owe and spend.
- Look into whether you might benefit from combining your debts into one.
- Pay your debts on time to avoid additional charges.
- Try to pay the full amount rather than the minimum owing on credit card payments.
- Investigate whether you can afford to make extra repayments.
- Shop around for providers with lower interest rates and/or lower or no annual fee.
To see Australia’s benchmark guide to how much money you need in retirement, refer to the Association of Superannuation Funds of Australia Retirement Standard: www.superannuation.asn.au/consumers/retirement-standard
Retirement planning isn’t only about thinking about survival; it’s about setting yourself up to flourish in this period. It’s about having time to try new things and do the things you haven’t had time to do. Time to spend on family and friends, and those things that you believe are important.
What type of retirement lifestyle do I want?
This is a question that requires you to envision and have a clear picture of what sort of life you want to live once you are no longer working. Some people envision taking annual trips across the world, while others are more content with enjoying the great outdoors of Australia. If you have a spouse, talk about these things together.
The ability to take trips and dine out later in life is contingent upon the planning you do today. Also, consider your health now and think about your future health needs.
Will I relocate or downsize?
Your living arrangements in retirement should be based on more than just your finances. Your health, partner, family and the activities you decide to pursue once you stop work will all play a part. Whatever your goals and future plans happen to be, remember that even a little bit of planning today could go a long way tomorrow.
If you are currently living in a manse, you will necessarily have to relocate. Start planning for this earlier rather than later.
Can I work part-time after I retire?
If you're prepared to keep working part-time, it can have a significant impact on how long your retirement savings will last. By earning even a modest salary for a few years into retirement, you can reduce the amount of income you draw down from your super.
When I stop work, what can I do that is meaningful and fulfilling?
Retirement can be an exciting time. You may have the freedom and the time to pursue your interests, travel or simply slow down to enjoy life. However, for some, retirement can be challenging.
You are adjusting to the loss of a regular daily work routine and the associated sense of purpose, which can be hard. There is the risk of boredom and a sense of purposelessness that can be stressful and lead to depression and other health problems.
Find new, meaningful activities to replace work. You may have retired from paid employment, but you have not retired from doing things that are significant and benefit those around you. There are several volunteer opportunities you could pursue, both in your church and in the local community.
Explore new hobbies or develop those you’ve been putting off or haven’t had time for.
Your age is only a number. It should not define what you do in retirement. Pablo Picasso was still producing art in his 90s, Thomas Edison invented the telephone at age 84, and Laura Ingalls Wilder published her first book at 64, to name a few.
Retirement is a serious adventure, and it requires a well-thought-out plan for peace of mind.
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Church Worker Support
197 Archer Street North Adelaide SA 5006
08 8267 7300
churchworkersupport@lca.org.au
