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October 24, 2023
In Australia there is no legal obligation to have a written contract of employment. So why have one at all?
What is an Employment Contract?
An employment contract is an agreement between and employer and employee that sets out terms and conditions of the employment relationship.
Why are Employment Contracts Important?
The importance of an employment contract is to ensure the both the employer and employee have a clear understanding of what is expected during the term of employment.
A written employment contract can help:
To understand an employee’s rights to certain pay and conditions
Manage employee’s expectations of their new role
Protect the business
Setting out the conditions of employment in writing is likely to reduce any future risk of confusion or misunderstanding about the employment.
What to include in an Employment Contract?
An employment contract should include the basic terms and conditions of employment, such as:
employer and employee details
job title
employment type (full-time, part-time, or casual)
employment dates
hours of work
pay and allowances
leave
notice requirements.
Other terms and conditions that you may consider in an employment contract include probation periods, termination rights, incentives, confidentiality, and ownership of intellectual property.
It is important to note here that an employment contract should not provide conditions that are below the employee’s minimum entitlements. These entitlements are set out in the National Employment Standards (NES) and the relevant industry award or enterprise agreement (if there is one applicable). But you can always choose to provide more generous terms and conditions.
When do you need any Employment Contract?
An employer should enter an employment contract with an employee when they are brought on board.
Need Help with an Employment Contract?
There are a range of free employment contract templates available that can be customised to suit your business. However, it is important to make sure they are up to date and compliant. Get in contact with Business Positive today for a no-obligation chat on how we can help you put together an employment contract.
A business and commerce graduate, Erin has specific expertise in HR and business processes. Erin is an accredited MBTI® practitioner, and uses these techniques and insights effectively to support businesses to get the best from their people. Erin also manages our Grants department, enabling us to get the best possible financial support for our clients from the available government and business funding.
