While Australian law does not strictly require a written employment contract, relying on verbal agreements is risky. A written contract provides certainty for both the employer and the employee about the terms of the relationship, and it serves as critical evidence if a dispute arises.
The Fair Work Act 2009 requires employers to provide every new employee with a Fair Work Information Statement before or as soon as practicable after their start date. Beyond that, the National Employment Standards (NES) set 11 minimum entitlements that apply to all national system employees regardless of what the contract says.
Key Principle
An employment contract can provide conditions that are better than the NES and any applicable modern award, but it can never provide less. If a contract term falls below the minimum, the NES or award term prevails.
Clearly define the role, reporting structure, and primary responsibilities. Include a flexibility clause allowing reasonable changes to duties.
Specify full-time, part-time, or casual. This determines leave entitlements, notice requirements, and National Employment Standards coverage.
State the base salary or hourly rate, payment frequency, superannuation guarantee (currently 12%), and any bonuses or commissions.
Define ordinary hours (maximum 38 per week for full-time). Include overtime provisions and any reasonable additional hours clause.
Reference NES minimums: 4 weeks annual leave, 10 days personal/carer's leave, parental leave, and long service leave under state legislation.
Set clear probation duration (typically 3-6 months) and the notice period during probation, which is often shorter than standard notice.
Outline notice periods for both parties, grounds for summary dismissal, and any post-employment obligations like return of property.
Protect business information with clear definitions of confidential material and obligations that survive termination of employment.
If needed, include non-compete and non-solicitation clauses. These must be reasonable in scope, geography, and duration to be enforceable.
Clarify ownership of work product created during employment. Under common law, employers generally own IP created in the course of employment.
Modern awards are industry or occupation-based documents that set minimum terms and conditions of employment. There are over 120 modern awards covering most Australian industries. If your employee's role falls under a modern award, the award terms apply on top of the NES.
Common modern awards include:
Use the Fair Work Commission's award finder tool to determine which modern award applies to your employees. Your employment contract should reference the applicable award and state that it forms part of the terms.
Creating an employment contract from scratch every time you hire is inefficient and error-prone. Sign & Go offers professionally drafted employment contract templates that you can customise with AI-powered field detection.
Select from our library of 14 Australian legal templates, including full-time and casual employment agreements.
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Add the new employee as a recipient, place signature fields, and send. They sign electronically from any device.