1 – Introduction
have chosen the cafe ran by the husband and wife team Stefan and
Nuncia. For this small cafe they will need a someone in charge of the
front of house, taking control of the three servers and making sure
they are doing their job. They will also need some cooks. For this
exercise lets assume Stefan is a cook and is control of the kitchen
and one other cook and the wife Nuncia is controlling the front with
three other servers so makes a total of six workers on any given
Some legal issues that will need to be taken care of
is the managing of contacts for both workers and to the companies
supplying the foods and drinks they will be serving. The renting of
property and the hiring of staff.
2 – Ownership structure
have chosen the ‘partnership’ business structure. I have chosen
this as a husband and wife team are already know what its like to be
a partnership instead of two people. Some advantages to this are.
1. The freedom of owning their own business and having control of
2. Initial start up costs are lower
3. It is
much easier to change legal structure down the line.
1. Debts for partners can be exponential
2. Each individual is responsible for both partners
3. Risk of disagreements causing friction and possibly
ending the business is much higher than any other structure.
The legal responsibilities that face a partnership fall on both
shoulders. Making sure that tax is payed on the net each receives not
on a basic income tax. They must register for GST if the income they
make is over $75,000. The business requires its own tax file number.
An ABN is nice to have but isn’t quite necessary.
licences, codes, regulatory requirements
The food standards act for Australia and New Zealand is the laws
behind but not limited to the creation, consumption, selling and
purchasing of food and drink. It covers things like what is
considered a food. It forces the business to serve food that is
edible to the consumer and makes sure they comply with standards for
allergens as well. It covers food storage and practices the ensure
safe cooking and consumption which is crucial for any business that
serves food to survive.
2) Superannuation is an amount of
money based on workers earnings that gets deposited and is available
to them once they have finished working. Minimum
is 9.5% of their earnings after they have made more than $450
in a month of working. Ways to make sure you are complying with legal
standards would be to keep track of how much you are paying each
worker very closely. Making sure you are paying their superannuation
on time can be achieved by looking up the quarterly dates multiple
times and have the payments in by those times. SuperStream is a new
way of making sure this all done easily and affordably through online
up online is probably the easiest way in the modern age. Browsing
online forums and discussion boards can be a huge tool if you know
what you’re looking for. But it is a give and take situation with so
much information online you are bound to know something someone else
doesn’t and it is fair for every piece of knowledge you gain from a
forum you should put something you know down as well. Following the
right people on social media can also be a very realistic way of
finding new information surrounding your business. Things like
twitter and facebook allow real time updates every second of every
– Contract for the lease of the building
– Contract for businesses providing food and
2) The employers contractual responsibilities have
been marked with a red line next to them and the employees
responsibilities have been marked with blue.
A breach of
this contract would include a worker starting a second job with
another cafe or place that serves food that might be seen as a
5 – Consumer
In this business customers have the right to good food and good
service. If a customer has an issue with what they got they have the
right to a full refund or some kind of compensation. They also have
the right to receive a bill free of charge when they ask for it. They
also have the right to safe and comfortable experience. This
legislation effects the business in ways that force you to give
customers a good experience.
2) One of the areas
identified is a safe experience. Ways to ensure that the area is as
safe as possible is to have very clear and readable signage. As an
example having a “watch the step” sign before a step or a
“slippery when wet” sign on a wet floor.
6 – Business premises
this Cafe they will be leasing the premises that they are working out
of. Some of the main points that should be considered are the lease
duration and having the option to renew the lease once its up. A
reasonable price for rent considering the area and the business they
are going into. Initial repairs and the upkeep of the area during the
lease and who it will fall onto if certain things need fixing.
Possible clauses that would interfere with the operating hours of the
cafe. They may even consider negotiating for protection against
7 – Intellectual property law
Anything used in the branding and the branding strategy can fall
under IP. Logos and names, the packaging it comes in to specific
2) The partnership would have to apply for
trademarks and copyrights for their brand name.
8 – Industrial law
According to the fair work website the award that covers cafe work is
Industry Award 2010 MA000119”. Keeping up to date with this is as
easy as checking it on the fair work website. It takes less than 5
General records like the employees name and the date they started
working. Pay records, records of the hours that they have worked, and
records of staff taking any kind of leave, superannuation
contribution records, a guarantee if annual earnings record must be
kept if a promise of an annual salary is met. Termination and
transfer of business records must be kept also. All these records
must be kept for a minimum of 7 years in a readily accessible manner.
Health and Safety
employers have to make sure staff are trained and trained well. They
need to reduce risks where they can, following OH standards of
a clean and clear workplace. Make sure slipping, tripping and falling
are out of the question. Keep hot stuff covered and guarded. Make
sure emergency procedures are well known and can be completed by
every worker there. They also need to keep clear of any workplace
harassment of any kind.
Employees need to make sure they are alert and aware. Keep out of
trouble and stay safe in the workplace. They need to make sure they
pay attention during training and ask questions where they need help.
They need to speak up against anything that breaches OH to the
employer as soon as they notice it.
The WorkSafe NSW online page is updated frequently and has a lot of
information surrounding OH in the workplace.
10 –Insurance and Tort law
Acts of nuisance refers to something or someone that causes offence,
annoyance, trouble or injury to someone else. Tort refers to someone
causing one or more of these offences to someone in a way that is not
illegal but legal action can be taken upon the offender. Such as a
car accident, due to negligent driving a crash has occurred. The
person who was hit has the right to take legal action against the
covers the loss or damage to the property which could come from a
power surge or even a fire.
insurance covers theft and even damage dealt to contents, stock and
sometimes specified items
Also known as legal liability provides cover for any compensation if
the business is responsible for an injury.
– Cover for any machinery, computer or electronic systems that
break, falter or breakdown.
Insurance for goods that may or could be damaged while they are in
transit or before they are brought to your business
– loss or damage to the money from armed hold ups and natural
disasters is covered through this.
11 – Taxation law
They need to sign up with the ATO. Register for GST and an ABN. Tax
file numbers are also needed. PAYG or pay as you go is a must as
the GST guidelines most things in the kitchen can have a GST cost
added to them other than basic foods like bread, milk and eggs.
Bottled water is also exempt from GST.
Keeping up with this isn’t to hard when you apply for GST through
the ATO website most of it is applied for you and is really easy to
use. Making sure everything on the menu has GST prices already
included is another thing to watch out for.
as you go or PAYG withholding is a system in place to make sure your
tax liabilities are in order. It is done by withholding amounted from
payments you make to your employees and any other contractors
throughout the year. At the end of the tax year you send a report
with all the payments made to worker during that financial year and
the amounts you withheld.
Make sure you’re kept in the loop for this. To do so would be by
checking up on the websites and to check in with the ATO every
quarter or half a year.