Employment Contracts are essential to protect yourself and your business.
Whilst it can be tempting to enter into an oral agreement about the terms and conditions of an employee’s employment, it can be a recipe for disaster, if you and/or your employee, later down the track, cannot agree on the specific details of the employment that were entered into.
An Employment Contract records and clearly sets out the essential terms of the employment and it provides a source of reference for you and your employee, if ever in doubt of any conditions of the employment.
Terms and conditions, relating to matters which are not covered under the Fair Work Act 2009, the National Employment Standards and any relevant award or enterprise agreement, can also be included in an Employment Contract to protect your business.
An Employment Contract can be customised to each employees’ position and it can incorporate essential terms, including:
- The annualised salary and/or the hourly rate of the employee;
- Information relating to the payment of overtime, allowances and penalties;
- The role and the scope of the employees duties;
- The benefits an employee will receive, for example training and memberships;
- Any bonus structures;
- Leave entitlements;
- Confidentiality and restraint of trade after employment ends; and
- An employee’s entitlements in the event of a termination or redundancy, and the period of notice that the employee and the employer are to provide to each other in the event of the same.
Employment Contracts also act as a useful tool to capture requirements under relevant awards, which mandate that employers are to set out certain agreements with their employees in writing inclusive of certain specific details, for example, agreements with employees in relation to annualised salaries. Given the recent changes to several Awards earlier this year, it has become more critical than ever before for employers to ensure requirements under the relevant Awards are adhered to and that they understand them.
If your employees are covered by an Award and you don’t understand its terms or how it applies to your employees employment seek legal advice to make sure you are adhering to all your legal requirements. If you don’t it could be a very costly mistake down the track.
Please contact Kaviytha Raman or one of our experienced lawyers on 08 8333 2130 if you need Award advice or a customised employment contract for your employees and/or a review of your existing employment contracts.
This blog post does not constitute legal advice and should not be relied upon as such. It is a general commentary on matters that may be of interest to you. Formal legal or other professional advice should be sought before acting or relying on any matter arising from this communication.