10 Things Your Employment Contract Should Contain.

Many people think that if they do not have a written contract of employment then they are not under a contract of employment. This is incorrect. A verbal agreement can still be an enforceable agreement at law.

The real question is whether that contract is subject to verbal or written terms or a combination of the two. The advantage of a written contract is that everyone can clearly see what the terms are and know where they stand. This is also important in the event of a dispute between the employer and the employee.

Also when drafting a contract, keep in mind that the Fair Work Act 2009 provides employees with considerable protection and flexible work conditions in the workplace. Employers should also be aware of the National Employment Standards (NES), which provide a safety net for employees.

Whether you are updating your employment contracts or drafting them for the first time, consider including the following ten points.

1. A clear job description

This should set out the role and duties of the employee. A clear job description makes it easier to tell if an employee is not performing their duties and needs additional assistance or remedial action.

2. Salary or wage details

Aside from the salary, the contract should include superannuation and any overtime, bonuses and allowances that are relevant. The contract should also provide for a salary review.

3. The nature of the employment

Your contract should state whether the employee is hired on a full time, part time or casual basis to avoid ambiguity.

4. The reporting structure

5. Leave entitlements

6. Confidentiality

7. Non-compete/restraint of trade

This clause helps to provide boundaries for employees when engaging with clients and businesses in competition with the employer. It will often set out a time restriction after the employee ceases working for the employer in which the employee cannot work directly with a competitor.

8. Protection of intellectual property

A term regarding intellectual property to protect the information which belongs to the employer.

9. Termination process

A written contract should lay out the conditions under which termination will occur.

10. Dispute resolution

A dispute resolution clause will specify what to do in the event of a dispute between the employer and employee.

Johnston Withers Lawyers: Experience You Can Trust

Johnston Withers Lawyers’ employment lawyers have extensive experience in providing advice to both employees and employers in relation to entitlements and workplace relations. If you’d like advice or direction from a lawyer, please contact us on (08) 8231 1110 or get in touch online.