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Employment law for employers

Employment contracts: what Australian employers should include

A written employment contract sets clear expectations and protects the business. It sits on top of minimum legal entitlements — it cannot take them away.

The legal minimums

  • Most employees are covered by the Fair Work Act 2009 (Cth), the National Employment Standards and, often, a modern award or enterprise agreement.
  • A contract cannot provide less than these minimums. Check which award, if any, applies and the correct classification.
  • Employers must give new employees the Fair Work Information Statement, and casual employees the Casual Employment Information Statement.

Type of employment

  • Full-time, part-time, casual or fixed-term. Each has different rules; restrictions apply to some fixed-term contracts.
  • Calling a worker a contractor does not make them one. Misclassification can lead to back-payments and penalties.

Pay and hours

  • Pay rate, superannuation, allowances and how overtime and penalty rates are handled.
  • If paying an annualised salary to cover award entitlements, make sure the arrangement complies with the award and is reviewed.

Protecting the business

  • Confidentiality obligations and ownership of intellectual property created in the job.
  • Post-employment restraints must be reasonable to be enforceable. Check the current law before relying on one.
  • Workplace policies the employee must follow, kept separate so they can be updated.

Probation and ending employment

  • Probation periods and how they interact with unfair dismissal minimum employment periods.
  • Notice periods, which must at least meet the NES, and any payment in lieu.

Need help with this?

Tell us the role, the employee type and any award you believe applies. We’ll discuss the scope and engagement terms before drafting or reviewing.

General information only, not legal advice. Laws differ between states and territories and depend on your circumstances.

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