Creating A Business Compliance System – Stages, Information Sources, Legal Requirements And Procedures

Stages of Creating a Business Compliance System

• You are to answer all questions.
• Read each question carefully. Ensure you have provided all required information.
• On completion, submit your assessment to your assessor.
• To achieve a successful outcome of these questions the minimum correct answers required is:
• Section 1 – 30/35 correct  
• Section 2 – 5/7 correct  
• Section 3 – 5/7 correct  
• Section 4 – 3/3 correct  
• Learners have access to the complaints and appeals process as per AAMS student hand book
• Reasonable adjustment will be provided for students with a disability or learning difficulty according to the nature of the disability or difficulty. Reasonable adjustments are made to ensure that the student is not presented with artificial barriers to demonstrating achievement in the program of study. Reasonable adjustments may include the use of adaptive technology, educational support alternative methods of assessment such as oral assessment.

SECTION 1: REsearch information required for legal compliance

Q1: State the three stages of creating a business compliance system.

The three stages of creating a business compliance system are:

• To comply with the intent and not just with the letter of law
• Secondly it is necessary to communicate with the policy controllers
• At last to keep the compliance instruction easy and simple

Q2: List six sources of information you can use to check and help to keep up to date with compliance, laws and licensing requirements applicable to your business.

          The sources of information to get updated on the changes in law and compliance which is applicable to the business are as follows:

• The officers and directors get the information on the changes in law from the industry regulators and that of the industry associations.
• The big business gets the updated information from the employers and the WHS and training courses
• The medium size business gets the changes in regulatory notification from the employer and the industry association and the pamphlets and the newsletters
• The small businesses get information on the business compliance from the WHS or the media, industry pamphlets and the internet
• The Supervisors gets updated from the media or training courses and even in the meetings
• A worker gets their WHS information from their workplace

Q3: For these four areas of business, list the systems or procedures you would implement to ensure compliance with relevant legal and licensing requirements.

The procedures implemented to ensure compliance are:

• To follow the general code of practice guidelines so as to minimize the use of liquor this will reduce the offences and disturbances to the people
• It is necessary to identify and apply appropriately the legislation and rules which apply to the business
• It is necessary to operate with the understand and review the licensing requirement
• To maintain the records
• It is crucial to interact with the regulatory agencies to review the business

Gaming licence

The procedures implemented are as follows:

• To establish the procedures so as to maintain the policies of gaming licence
• To maintain the systems this will help in keeping the record reliable
• To ensure the strict compliance is maintained with various laws and internal controls relating to gaming policies
• To ensure effective control financial and fiscal affairs of the business relating gaming licence
• Collect the report in order to review the information which is submitted by the participants

The procedures implemented to ensure compliance are as follows:

• It is necessary to impose the rights and obligation on the people in the business so that they ensure the enforceability
• The States shall intervenes so that the policies are corrected and thus the forum will act on behalf of the public interest and punish those who have made offences
• They shall ensure that the products as well as the services sold are maintaining the minimum safety standard
• A national consumer policy is framed which will set guidelines to protect the consumers.

EEO and anti-discrimination

The procedures followed to comply with the regulation are:

• The work place should be free of discrimination and there should not be harassment of women and minority
• The work place is able to respect the diversity
• There shall be fair and equal opportunity for employment to one and all
• The employer having the potential and merit should be rewarded irrespective of race and class

Q4: What organisations would you consult to access regulatory information and requirements relevant to the following business operations in travel, tourism, hospitality and events?

Deducting the correct amount of payroll tax.

The organization is Australian Business Licence and information Service

Maintaining a safe workplace.

The organization is Occupational Health and Safety Act

The organization is Corporation Act, 2001.

Paying the right amount of super to employees.

The organization is Australian taxation Office

Q5: List five risks, penalties and consequences of not complying with the Food Standards Australia New Zealand Act 1991.

The risk and penalties are:

• A penalty notice will be given to the company. It is also called the infringement notice for not maintaining safety and hygiene
• An on spot fine is levied
• Penalty for infringement is also levied under the Monetary Units Act 2004, the last one penalty unit was $151.67
• The last action is the temporary closure or to stop handling particular food handling services so as to protect the health and safety of the public

Q6: A colleague has accused you of sexual harassment. Despite the involvement of your manager and trade union representative, the issue remains unresolved.

Do you need specialist legal advice in this situation? If so, who would you contact? If not, why not?

In the above situation in spite of the involvement of the manager and the trade union, the issue regarding the sexual harassment has remain unresolved and thus it is necessary to approach to the specialist legal service known as the Australian Human Rights Commission.

Q7: The following sentence describes your legal responsibility as a manager when it comes to EEO. Complete this sentence in five different ways.

ðUnder the Australian Human Rights Commission Act 1986, it’s illegal to discriminate against people because of their:

• Age
• Race or colour
• National origin
• Mental or physical disability
• Religion

Q8: Describe the key principles of fairness and equity which you should follow to comply with EEO and anti-discrimination law.

The key principles are as follows:

• It is to create a work culture which will help in promotion of respect, dignity between the employees
• To hold the highest level of integrity and to treat all the employees in the organization with equality and compatibility
• To promote a work culture this will be free of harassment and discrimination between the parties in any respect
• To promptly address all the workplace grievances and there should be transparency and confidentiality maintained

Q9: Describe how to comply with Australian Consumer Law (ACL) and what practices are prohibited by law.

Sources of Information for Compliance Requirements

How to comply

• The trade practices protect the consumers from any deceptive treatment
• It helps the business from acting unconsciously
• It helps the industry so that it does not get involve in restrictive trade practice and there is no unfair advantage to the competitor

The practices which are prohibited are:

• Restrictive trade practices including tying agreements, boycotts, misuse of the market power and the resale price maintenance
• It is prohibited to provide any false or misleading representation to the consumers
• Illegal advertising and marketing practices in the market
• Any false or misleading nature of goods and services

Q10: What are the six fundamental principles needed for a contract to be legally binding?

• There must be an Agreement
• The agreement shall have some Consideration
• The parties must have Intention
• They shall have the Capacity to contract
• Genuine Consent
• There shall be Legality of contract

Q12: Which employees are employers legally obligated to pay super to?

The employer who are legally obliged to pay super are those employer and employee governed by the industrial instrument

Q13: What are the record keeping requirements for super?

• Record must be kept which create super guarantee paid to the employees
• A record of five years must be kept
• The records which must be kept should be in English
• The records which are to be maintained shall be in electronic document, or CD or computer records
• Details of all employees who are not eligible for super shall be kept

Q14: List four ways to comply with taxation laws.

• To maintain a timely and complete and appropriate record of the information
• To mandatorily file the returns and forms
• To take help from trustworthy advisors
• To be updated with the day to day regulation

Q15: Identify six records you should keep to prove you are complying with taxation laws.

• Keeping the invoices of the payment
• To maintain electronically the records of the transaction
• To report some of the information online
• Back up of all the records and documents should be kept in case of loss due to fire, flood and theft
• The accounting record
• The taxation record
• The bank statement
• The legal documents
• The permission and the licences obtained in the business
• The insurance document

Q16: What organisation conducts tax audits?

The big organization or the multinational corporation need to comply with the tax audit

Q17: State the basic components of environmental protection laws

The basic areas are

• Protection of the environment which the mother Earth
• Upliftment of the poor class or the rural people
• Empowering the women so that they can have a stand
• Financial benefits and help to uplift the business and economy

Q18: What are three consequences of non-compliance with environmental law?

• The costs of non compliance of the rules are very high and fines may range from $341100 to 74583348
• If the organization is found not complying the regulation then it shall be charged with organizational probation
• Law suits are raised
• The project which was carried out by the company are delayed

Q19: Describe two key components of the Fair Work system created under the Fair Work Act 2009.

• There are ten national employment standards
• As per the Act there are is national minimum wage
• The Act protects from the unfair dismissal
• As per the act the awards only apply to specific companies

Q20: The National Employment Standards (NES) sets out ten minimum entitlements that apply to all employees and employers in the national workplace relations system. List five of these entitlements.

The five entitlements that apply are as follows:

• There shall be thirty eight weekly hours which is paid to the employees
• The company can arrange for flexible working arrangements for the employees
• There shall be paid public holiday
• There shall be four weeks paid leave in each year
• The company is entitled to give parental leave and the related entitlement which is 12 months unpaid leave maximum

Q21: List six things an employer must do to comply with their duty of care and legal obligations under WHS legislation.

• It shall the duty to consult with the employees and take care of the health and safety of the employees
• It is reasonable that the management ensures control over the workplace
• The company shall abide by the WHS legislation
• The employers shall have the duty to abide by the due diligence and manage the work and health safety risks of the business

Q22: List four employees’ responsibilities under WHS legislation.

The employees shall be responsible for the following

• They must take reasonable care to the health and safety of themselves
• Must be able to comply with the regulations of WHS effectively
• The employee shall cooperate so that the employer is able to comply with the requirements of OHS
• It is important so that the health and safety of other affected are taken care of

Q23: Workers’ compensation insurance is compulsory. What does it cover you for?

The workers’ compensation covers the following:

• The medical cost and the treatment provided for their illness
• It covers the wages which are missed
• It also covers the funeral cost and the benefits due to death of the members
• The legal cost is also reimbursed

Q24: What does public liability insurance cover you for?

The public liability insurance covers a huge range of situation. It covers a situation when the person is injured in the business or there is damage in the third party property. It tells even if there is a minor damage to someone else property then it could lead to paying hefty fines.

Q25: Name four practices prohibited under RSA.

• There should not be any advertisement for promoting liquor which leads to overdose consumption of liquor
• The advertisement shall discourage the amount of alcohol consumption
• The primary focus in case of advertising should not be liquor

Q26: What are two record keeping requirements of RSA?

• It includes the registration number, the model and the agreement entered into
• It should include all the details of the defects discovered

Q27: Although state/territory government gaming laws and regulations vary slightly, the principles are essentially the same. Describe three of them.

• The gaming Regulation Act 2003 are those which foster responsible for gaming
• It ensures that the minors are not involved in gamble
• To accommodate those gamble which does not harm anybody

Q28: What two practices are prohibited when it comes to gaming?

• Usage of emotive descriptions which are likely to encourage the irresponsible drinking 
• Involve pouring or shooting alcoholic drinks straight into patrons’ mouths

Q29: The Australia New Zealand Food Standards Code is a mandatory code of conduct enshrined in the Food Standards Australia New Zealand Act 1991. State four of its basic principles.

• It ensure that the food which is sold is safe for consumption by the people
• It helps in the prevention of policies which are misleading in the sale of food;
• It provide adequate information so as to enable the consumers to make a informed choice
• It ensures to provide such a framework in the food industry by working efficiently.

Q30: Explain four ways a travel agent could support the Criminal Code Act 1995.

The travel agent could support the Criminal Code Act, 1995 by the following ways:

• It the travel agent does not make any offence by cheating the traveller
• Not contravening the rules which can apply to travel agent for safeguarding the safety and health of the traveller.

Legal and Licensing Requirements for Liquor, Gaming, Consumer Protection, EEO and Anti-discrimination

Q31: What maximum fine could a corporate body face if found complicit with sexual offences against children?

The amount of 200 units

Q32: Do you need a licence to be a travel agent?

The licence for travel agent is mandatory

Q33: What are two objectives of the Queensland Tourism Services Act?

• It is important to establish a registration system which included the inbound tour
• It sets the minimum standards for carrying out the inbound tour operations
• It prohibits the unconscionable conduct by the tour operators

Q34: Does the Residential Tenancies Act 1997 apply to hotels, motels or temporary mobile homes?

The Residential Tenancies Act 1997 is an Act, which is applicable to the residential tenancies in NSW. This Act also covers the private tenants, social housing tenants and to the people who rent in the residential park.

Q35: List two minimum standards the European Package Travel Directive lays out to protect customers.

           The European Package Directive has laid out protection to the customers and the two minimum standards that are laid out in the Directive are as follows:

• There are pre arranged packages for the holidays provided by the tour operator which provide transport and accommodation and various facilities to the tourists.
• There is customized package given to the tourists which and it is bought by the single business online

SECTION 2: develop and communicate policies and procedures for legal compliance

Q36: Whose legal responsibility is it to ensure all staff has the knowledge and skills needed to carry out their duties in compliance with the law?

The Health and safety at Works Act 1974 lays down the legal responsibility and it ensures that they have enough knowledge and skills to comply with the duties and responsibilities. The management of health and safety at work Regulation provide guidelines for the compliance.

Q37: Policies are an important part of managing regulatory compliance. Describe the components of a well-written compliance policy.

The components of well written compliance policies are as follows:

• It is important to establish the polices and the procedures to promote the commitment towards compliance
• It helps in the promotion of training and education to all the employees in the organization
• It helps in the development of the process so as to enforce the standards which oblige for disciplinary measures to the employees who cannot comply with the regulation

Q38: You’re opening a travel agency. List five policies and procedures you’d need to develop in order to comply with the law.

        The basic consideration which should be kept in mind while developing the policies so as to comply with the legal formalities is as follows:

• Firstly to develop a comprehensive plan for the business
• To have a definite knowledge about the market in which the business will be operating and to display and hire skilled and experienced staffs
• There should be a financial forecast of the business plan for a certain period of minimum 1 year
• The person should undergo the policies on sales and payment
• The agent shall follow the policies regarding the general advertising and the pricing policy
• The travel agent is also obliged to comply with the requirement of restricted promotional fares

Q39: Name two places you can keep policies and procedures so they’re accessible to all staff.

          The records are stored by the organization in the places which will enable in the accessibility of the staffs:

• Store the policies and documents in the particular ram in the computer or in cabinets in the closed offices
• The electronic records must be protected by passwords and other security
• The data shall be retained for a period of minimum two years for safeguard of the staffs

Q40: Identify two documents in which you should nominate the roles and responsibilities of personnel for regulatory compliance.

•   The annual report
• Financial statements

Q41: Who should you distribute policies, procedures and legal information to?

The compliance officer should be distributed the policies procedures and the legal information.

Q42: Describe six ways you could distribute, communicate and share policies, procedures, legal information and updates in an organised way so staff know their roles and responsibilities regarding compliance.

          The ways to distribute the information and communicate and share policies and updates to the staffs regarding the role s and responsibilities are:

• To hold the meeting of the meeting in a regular way
• To held the senior leadership meeting and conference for the top leaders.
• To respond to the employees and to email them within 24 hours
• To be comfortable in speaking about what is not working
• To give correspondence and provide a weekly records  to the employees of the company

SECTION 3: ensure compliance with legal requirements

Q43: You’re planning to open a new restaurant. List six regulatory authorities you might communicate with first.

The regulatory authorities who need to be communicated when starting a restaurant business in Australia:

• The trade licence from the Municipal Corporation
• The licence from the Food Safety and Standards Authority of India
• GST Registration has to be gained for starting the hotel business
• The professional tax licence needs to be obtained
• The company needs to obtain the business registration from the partnership
• At last the company needs to obtain the liquor registration in order to sell liquor in the hotel

Q44: A staff member is about to have a meeting with a representative of the WHS authority to determine the scope of compliance requirements for the new restaurant. Provide them with seven communication tips.

The communication steps are as follows:

• To train the employees so that they understand the pitfalls and the problems
• It is crucial for the organization to help the employees to participate in the day o day working of the organization
• To be focused on the more on listening
• To learn a two way conversation between the people
• It is crucial to respect the staff and therefore they will respect the organization
• To be effectively able to communicate the messages to the management

Q45: List four ways to monitor and continually evaluate your business compliance system.

The four ways to evaluate or monitor the business compliance system are as follows:

• To give a written explanation to the employees of the policies of the organization
• To be aware that the employees are aware of all the policies and procedures of the organization
• The organization shall ensure that the staff or the employees follow the policies laid down by the organization
• To have a check in on the employees and see that the employees comply with the procedures
• To make sure that the employees make a document on their work

Q46: What are the three components of risk management?

The components are as follows:

•           The events which makes the occurrence of risk
•           The probability that the risk can occur or the likelihood of it occurring
•            The impact it has on occurring of the risk and the penalty to be paid on it

Q47: What is a risk assessment used to measure?

Risk assessment is a tool which is used to describe the process and also help in the identification of the hazards or the risk that has the potential and can cause harm. It is thus crucial to evaluate the risk in the organization.

Q48: Read the following two scenarios. Describe any potential breaches of legislation you identify.

An employee continues to serve alcoholic drinks to an intoxicated customer who is playing pokies in an establishment.

• The breach of Gaming Act which prohibits the service of alcohol to prohibited games

A manager advertises a vacant position for a female receptionist.

The manger has not breached and legislation in this case

Q49: Choose one of the breaches from Q48. Describe step-by-step how you’d implement modifications to your business compliance plan with your team to ensure compliance.

• Conduct an internal monitoring and the auditing by performing periodic audits;
• Implement the compliance and organizational standards by following the standards and procedures;
• Designate a Compliance Officer  so as to monitor the efforts by provider of standards;
• Conduct an appropriate training and education to the  provider of standards and procedures;
• Respond appropriately to the detected violations by investigation of allegations

SECTION 4: maintain personal and organisational knowledge of regulatory requirements

Q50: Identify four methods you can use or opportunities you can take advantage of to maintain knowledge of current laws or regulatory/licensing requirements.

The methods to stay updated with the knowledge of current laws or regulatory/licensing requirements.

• To communicate with the people or friend who is mentor and is related to the industry
• To be able to stay updated with the current laws or regulations by studying
• To subscribe on to various newsletters and journals and blogs related to the current laws
• To attend the various conferences and training services so as enable to have knowledge about the current regulation
• To be able to follow the social news and by following the updates of the people in LinkedIn and twitter
• The best way is to stay updated is to read and listen and to watch the latest videos

Q52: Why should you continuously review and distribute plans, policies and procedures for compliance with current laws and licensing requirements?

In order to be able to access and to interpret the regulatory information and to determine the scope of compliance and to develop and also to implement so as to continuously review the policies and practices for complying with the regulation of business law