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What is an employment contract?

An employment contract is a formal agreement between an employer and its employee setting out the terms and conditions of employment.  It is a legal agreement that can be challenged or enforced in the civil courts. An employment contract can be written or verbal, therefore, every employee has one whether it be a written document that has been signed by both parties, an employment offer setting out the terms and conditions that has been accepted by the employee or a verbal agreement (discussions during an interview and when the offer of employment is made).

Are written employment contracts required if the employee is covered by a Modern Award or Enterprise Agreement?

Although Modern Awards and Enterprise Agreements (Industrial Instruments) set out the minimum standards of employment in conjunction with the Fair Work Act 2009 (Cth), some sort of agreement will need to set out the details of each specific employee’s engagement.  For example, an employee’s status of employment, hours of work, meal breaks, duties and responsibilities, remuneration and commission structures.

What should I consider when drafting an employment contract?

Each clause within a written employment contract should be carefully drafted taking into consideration legal compliance and practicality in your workplace. Ask yourself the following questions:-

  • Does the clause meet the minimum standards set out in the Fair Work Act or relevant Industrial Instruments?
  • Could this matter be dealt with better in a workplace policy?
  • Does this clause adequately protect the business?
  • Is this clause consistent with current terms offered to others within the same or similar position?

Answering these questions can be difficult without current knowledge of relevant Awards and legislative updates. Cube Workplace Solutions can draft a contract that is best suited to your business. A document that can be easily understood by you and your employees, taking into consideration matters that directly relate to your business. Call us today on 1300 122 823 to ask about our fixed price employment contracts that are tailored to your business and drafted by an employment lawyer.

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Speak directly to a professional Employment Lawyer for advice that is tailored to your business on 1300 122 823