Maximum Term Employment Agreement
This Maximum Term Employment Agreement, structured as an offer letter, establishes an employment relationship that will last, at a maximum, for a specific period or until a specific date.
(0 reviews)
Last updated December 19, 2024
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
An Employment Agreement is a great way to lay out the terms, expectations, and responsibilities of a new employee.
The difference between a Fixed Term Employment Agreement and a Maximum Term Employment Agreement is that the latter includes a probation period and/or any provision allowing early termination for reasons other than serious misconduct or breach of contract. Unlike Fixed Term Employment Agreements, Maximum Term Employment Agreements give employees right to claim unfair dismissal. You can also use Lawpath's Fixed Term Employment Agreement document.
WARNING: there is legal uncertainty as to whether, under the Fair Work Act, maximum term agreements can terminate on the set date without triggering an unfair dismissal claim. We highly recommend speaking to a lawyer when entering such an agreement.
Additionally, it is important that at no point during the employment the employer gives the employee any representation or expectation that the agreement will continue beyond the end date. If this happens, a court might consider the agreement to not fall under the section 386(2)(a) exception, and give the employee unfair dismissal rights that may apply even if employment is terminated on the set date.
What is the difference between maximum term employment and casual employment?
Maximum term employees are different to casual contracts. Firstly, maximum term employees are either full-time or part-time employees as opposed to casual employees who work irregular hours. Furthermore, besides being employed for a maximum amount of time, these employees have the same rights for work conditions as permanent employees. A maximum term employment agreement is an appropriate solution when hiring someone for a specific amount of time, or to replace someone for a specific period.
The Legal Risk Score of a Maximum Term Employment Agreement Template
Our legal team have marked this document as low risk considering:
- Changes to employment terms, such as role, work location, and reporting arrangements, can be made unilaterally by the employer, potentially leading to unexpected shifts in the employee's work environment or responsibilities.
- The employer holds the rights to any intellectual property created during employment, which could limit the employee's control and future use of their own work outputs.
- Confidential information is tightly controlled, and any unauthorized use or disclosure by the employee could result in serious consequences, even after the employment has ended.
Maximum Term Employment Agreement Checklist
Complete your free Maximum Term Employment Agreement with our checklist
Review and Understand the Terms
Ensure you thoroughly read and understand all the terms, especially those related to intellectual property rights, confidentiality, and the ability of the employer to change employment conditions.
Sign and Return
Sign the document and return it to the specified address by the deadline mentioned to formally accept the employment offer.
Store a Copy
Keep a copy of the signed agreement for your records to refer back to during your employment, especially for understanding your rights and obligations.
Notify of Acceptance
Inform your employer that you have signed and returned the agreement and confirm they have received it to ensure all parties are aware that the agreement is in effect.
Use this Maximum Term Employment Agreement if:
- You are hiring a part-time or full-time employee for a maximum period of time or until a specific event occurs.
- You want to clearly establish an employee’s rights and responsibilities.
What's included in this Maximum Term Employment Agreement:
- Starting work
- Probationary Period
- Role and place of work
- Hours of work
- Duties and responsibilities
- Conflicts of interest
- Remuneration and benefits
- Superannuation
- Expenses
- Leave
- Use of our property
- Confidentiality
- Intellectual Property
- Privacy in our workplace
- Medical examinations
- Monitoring and surveillance
- Ending employment
- Deductions
- General Clauses
Other documents you may need:
Further Information
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