An employment agreement, also known as an employment contract, is a legally binding agreement between an employer and an employee that outlines the terms and conditions of employment. It is a crucial document that sets out the expectations and obligations of both parties and serves as a reference point in the event of any disputes or misunderstandings.
What is the main purpose of an employment agreement?
The main purpose of an employment agreement is to establish the terms and conditions of employment, including but not limited to the following:
Job title and description
Working hours and schedules
Compensation and benefits
Leave entitlements
Performance expectations
Termination procedures
Confidentiality and non-compete clauses
Intellectual property rights
What are the various types of employment agreements?
There are various types of employment agreements in Australia, including full-time, part-time, casual, and fixed-term contracts. Each type has its own set of requirements and obligations, depending on the nature of the job and the industry.
What key things should be included in an employment agreement?
Regardless of the type of employment agreement, there are key things that should be included to ensure clarity and avoid ambiguity. These include the job title and description, remuneration, hours of work, leave entitlements, notice periods, and any specific requirements or restrictions.
Is employer agreement a contract?
An employment agreement is a type of contract, which means that it is legally binding and enforceable. As such, it is important to ensure that the terms and conditions are fair and reasonable and that both parties fully understand and agree to them.
Can I write my own employment contract?
While it is possible to write your own employment contract, it is highly recommended that you seek legal advice or use an employment agreement template provided by a reputable source such as Lawpath. This will ensure that the document complies with relevant legislation and covers all necessary details.
Is it a legal requirement to have an employment contract in Australia
In Australia, it is a legal requirement for employers to provide their employees with a written employment agreement within the first month of employment. This agreement must include specific details, such as the rate of pay, working hours, and leave entitlements.
Can employers change contracts without an agreement?
Employers cannot change employment contracts without the agreement of the employee unless there is a specific provision in the contract that allows for variation. Any changes to the agreement must be made in writing and signed by both parties.
Are employment agreements legally binding/enforceable in Australia?
Employment agreements are legally binding and enforceable in Australia, provided that they comply with relevant legislation and cover all necessary details.
In the event of a dispute, the agreement will be used as a reference point to determine the rights and obligations of both parties. It is therefore important to ensure that the document is accurate, clear, and complete.
How it works
Follow the steps below and you'll have your ready-to-use document in no time
Step 01
Set up a free account
Step 02
Search and find the document you need from our list
Step 03
Follow the prompts and fill in all the relevant details
Introduction Some government organisations, as well as property managers and other private parties, may require an employer to verify that an employee is in fact
Introduction Do you run an online e-commerce store, or does your business involve delivering your products to your customers? In that case, it is important
Introduction Online businesses have the capacity to reach customers in distant locations, unlike traditional brick-and-mortar businesses. However, with physical businesses, it is easy for the
"I’m a returning customer. Lawpath’s document library continues to grow to cover even more legal scenarios and policies. Our clients appreciate eSigning documents online, and I like that I can access on-demand legal advice as our business grows."
"Using Lawpath has given us a competitive edge. Tackling the legal side of things early has not only saved my business money in the long-run, but has also made life as a new business owner incredibly easy"
"Excellent product, easy to use, rather elegant in ways. The service team is responsive, knowledgeable and thorough. I recommend"
“Lawpath has made me more confident. I’ve had a great experience using Lawpath and I’m keen to continue to ask my lawyer questions as they arise, so I can learn and develop my knowledge.”
"Speed and ease were the key factors that made me use Lawpath. Your company will be registered and ready to go basically instantly."
"The Lawpath Legal Advice Plan really caught my interest, and I’d never seen anything like it. It’s provided me with comfort, and the ongoing support from my lawyer is very beneficial."
The relationship between an employer and employee is fundamentally contractual. All employees should be employed under employment agreements, however employees will still be subject to the entitlements outlined in the National Employment Standards (NES). The benefit of using an individualised employment agreement is that you can set out terms not covered by national law. These include terms relating to confidentiality, notice periods and incentives.
An employment agreement can be simple or detailed depending on the needs of your business. What works for you depends on:
The nature of your business
How many staff you employ
The role you’re hiring for
Your staff turnover rate
Despite this, all employees should be given a formal written employment agreement that clearly states the rights and duties of each party.
Is a written employment contract necessary?
It’s important to understand that even if you don’t use an employment contract, a contractual relationship will still exist. In addition to setting out the rights and duties between an employer and an employee, an employment agreement can also help avoid disputes further down the track. Although all employees always have some form of employment contract with their employer (set out by national laws), a formal agreement helps avoid disputes down the line.
Using the right documents when hiring
When hiring employees, there’s a number of documents that will help ensure recruiting new members to your team is a smooth process. Formalising each step of the hiring process will make it easier to run and protect your business long-term.
1. Letter of offer
When you decide to hire someone for a role, it’s best practice to formalise this offer in writing. This letter should inform the candidate that they’ve been successful in applying for the role, confirm the title of the role and their start date. A formal letter of offer should compliment the employment agreement which follows.
2. Employment Agreement
Along with your letter of offer, your employment agreement should include:
The full name and address of the new employee
The employer’s name and office address (where the employee will work)
The role they will work in
An outline of their duties
Remuneration and superannuation contributions
Any other inclusions or incentives (e.g. bonuses, allowances and also other fringe benefits)
Grounds for termination such as poor performance or misconduct
Restraint of trade clause (if applicable)
Date of the agreement
Signature of the employer
Request for signature of employee
3. Workplace policies
Part of running a safe and productive workplace is having policies in place to manage this. Not having policies in place may lead to miscommunication and confusion amongst your employees about what is expected. Policies can also help you deal with workplace issues and significantly reduce legal risk. You should provide new employees with copies of your workplace policies when they start the job. Some of the most important policies you should have include:
Employment agreements can save your business confusion, time and money in setting out your terms clearly. Employees tend to perform best when they know what is expected of their role and when they understand what their obligations on the job are. Further, by making clear what you expect of your employees, you’ll also be protecting your business in the event that the employment relationship comes to an end.