The Top 10 Things to Look for in an Employment Contract in Australia
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Employment Contract in Australia,contract of employment, employment contracts, contract employment, employement contract

The Top 10 Things to Look for in an Employment Contract in Australia

An employment contract is a legally binding document that outlines the rights and obligations of both the employer and the employee. In Australia, it is essential for HR professionals to understand the key elements of an employment contract to ensure that their organisation is protected and that the rights of their employees are respected.

In this article, we will explore the top 10 things to look for in an employment contract in Australia. As an HR professional, it’s crucial to understand the importance of an employment contract and how it can affect your organisation’s culture, employee engagement, and productivity. By understanding the key elements of an employment contract, you can ensure that your organization is protected and that the rights of your employees are respected.

What Is A Contract Of Employment?

A contract of employment is an agreement signed between an employee and an employer. It allows both parties to be on a single page while deciding the terms of employment. An employment contract mentions the time limit an employee is liable to work with the employer.

An employment contract provides job security for the employee, as long as no terms and conditions are not breached.

Why Is An Employment Contract Important? 

An accurately drafted contract and understanding of policies are important for any business to keep their crucial pieces of information confidential. It allows an employer to discuss an employee’s role details and monetary benefits beforehand. For example, if it mentions that the employee will get salary raise per year, the employer is liable to do so.

If an employer or an employee fails to comply with any mentioned point in the contract, they can call for a meeting to review it. If parties cannot solve the dispute even after reviewing, they can take the matter to court or get a lawyer to intervene.

If drafted according to the Work Act, an employment contract is a key to protecting employee rights. And it ensures that the employers are paying correctly and per the set standards, which can vary from country to country.

Types of Employment Contract

There are different kinds of employment contracts, according to the job’s nature and company. These are the employment contracts that are widely found around the world.

1. Written Contract Of Employment

Written employment contracts are commonly used. A written agreement is a great way to describe the job description by an employer to an employee. The written contract includes the employee’s salary, benefits, and responsibilities.

A written contract lets the user go through all the details and requirements before signing it. After signing a written contract, the employee is liable to follow all the written terms and conditions. Breaking any term from an employee or an employer could cause legal consequences.

Written contract description varies from company to company. It is highly recommended for an employee to go through all the details before signing the agreement. For example, some companies mention in their agreement that they do not want their employee to work for their competitor or in the same industry after quitting.

2. Implied Contract Of Agreement

Unlike the written contract, An implied contract does not require to be in written or verbal form. The implied contract can be referred to as an employer’s expectations from an employee.

An implied contract can be developed over time between employer and employee. For example, changing responsibilities, traveling, and adding a task. The implied contracts can further be divided into two contracts.

  • Implied In-Fact Contracts

The Implied in-fact contracts can be referred to when paperless onboarding employees can infer with the employer and justify their work against the payment.

For instance, An employer often hires the same plumber for a $20 hourly rate. One day, the employer calls the plumber on the weekend, asks for work, and pays the plumber just a $10 hourly rate. The plumber could use previous payments to prove the implied-in-fact contract to get an additional fee.

  •   Implied At-Law Contracts

Implied at-law refers to the employer’s legal obligations to employees related to workplace practices. For example, an employer must pay non-exempt employees overtime if they work more than 40 hours a week.

3. Collective Bargaining Agreement (CBA)

A collective Bargaining Agreement (CBA) is a written agreement between an employer and labor union. It covers Labor wages, overtime, benefits, schedule, and working conditions.

4. More types of employment contracts

In addition to the types of employment contracts mentioned earlier, there are also several other variations that depends one whether the employees are working as full time part time or casual, including:

  • Permanent contract: A permanent contract is an agreement that is not time-limited, and the employee is considered a permanent member of the company.
  • Fixed-term contract: A fixed-term contract is an agreement that is set for a specific period of time, after which the employee’s employment is terminated.
  • Part-time contract: A part-time contract is an agreement where the employee works fewer hours than a full-time employee.
  • Casual contract: A casual contract is an agreement where the employee works on an as-needed basis, with no guaranteed hours of work.

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Top 10 Things to Look for in an Employment Contract in Australia

  1. Job Description: A clear and detailed job description is essential for both the employer and the employee. It should outline the duties and responsibilities of the role, as well as the qualifications and experience required.
  2. Terms of Employment: The terms of employment should be clearly outlined in the contract, including the start date, the length of the contract, and any probationary period.
  3. Remuneration and Benefits: The contract should detail the employee’s salary or hourly rate, any bonuses, and any benefits such as health insurance or paid time off.
  4. Working Hours: The contract should specify the employee’s working hours and any overtime or flexible working arrangements.
  5. Termination: The contract should outline the circumstances under which the contract can be terminated, including notice periods and the process for termination.
  6. Non-Compete and Non-Disclosure Clauses: These clauses are designed to protect the employer’s business and should be included in the contract if applicable.
  7. Restraint of Trade: These clauses are designed to protect the employer’s business and should be included in the contract if applicable.
  8. Intellectual Property: The contract should specify who owns any intellectual property created during the course of employment.
  9. Dispute Resolution: The contract should specify the process for resolving disputes between the employer and the employee.
  10. Compliance with Laws: The contract should specify that the employee is required to comply with all relevant laws and regulations.


How EmployeeConnect Can Help You With Employment Contracts?

Requirements of employment contracts in Australia are detailed and need critical supporting documents to initiate the process. Details can be found here.

EmployeeConnect is an Australian-based HR Company that provides one window solution for all the things related to hiring, employment contracts of Australia’s employees, and much more. Here is everything you need to know about EmployeeConnect and their services

Modern HR Solutions

EmployeeConnect is based on modern HR solutions, from paperless onboarding to providing employees a hustle-free and memorable experience. They provide core HR functions with modern twists like Centralise Employee data, which is easy to use and much easier to optimize according to the requirements of your business.

Accelerated Hiring of New Employees

Getting the right fit for the right role in a short amount of time is a very tough task. Outsourcing the hiring to EmployeeConnect might be the best way to get the desired results.

With their proven record and monitoring through their recruitment software, the employer can watch over the process and wait for them to provide the perfect candidate for the job.

Digital Employment Contract

Like many other services, EmployConnect provides digitally. Their employment contracts are also digital and can be tracked by logging in to their software.

Employers no need to wait for the employee to sign the employment contract so that they can proceed further. By using EmployConnect, Employers and employees can do this digitally and go through it whenever they like.

Performance Tracking

The employer can track employee performance using EmployeeConnect’s performance tracking app. Employees can also track their performance and see what can be improved.

In conclusion, an employment contract is a legally binding agreement that outlines the terms and conditions of the employment relationship, and it serves as a key tool for creating a positive work culture, increasing employee engagement, and boosting productivity and performance. Employers should ensure that their contracts are compliant with the relevant laws and regulations in Australia and regularly review and update the contract as needed. And both employers and employees should understand and abide by the terms and conditions outlined in the contract.

By understanding the key elements of an employment contract, HR professionals can ensure that their organization is protected and that the rights of their employees are respected. By including the above mentioned key elements in the contract, you can ensure that your employment contract is legally binding and covers all the essential aspects of the employment relationship.

If you’re searching for a comprehensive solution for managing your employment contracts and hiring process, EmployeeConnect is a top choice for businesses in Australia. Our cutting-edge HR solutions, efficient hiring process, digital employment contract management, and performance tracking tools make it easy for employers to effectively manage their employees while ensuring compliance with Australian laws and regulations.

By choosing EmployeeConnect, businesses can simplify their HR processes, save valuable time, and focus on driving growth and success. We offer a one-window solution for all your HR needs, making us a reliable partner for your business.

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Byron Conway

Content Coordinator at EmployeeConnect